12th Oct 2018 08:27
LONDON (Alliance News) - Emerging markets asset manager Ashmore Group PLC said Friday its assets under management increased in the first quarter of its financial year despite a "volatile" market.
The FTSE 250-listed asset manager increased its assets under management in the three months to September end to USD76.4 billion from USD73.9 billion at the end of its previous financial year in June.
Ashmore's biggest asset gains came from its Corporate Debt theme - rising to USD10.6 billion from USD9.8 billion - and its External Debt theme - increasing to USD15.5 billion from USD14.5 billion.
The asset manager's net inflows in the period totalled USD1.9 billion, adding to positive investment movement of USD300 million.
By comparison, in the first quarter of financial year 2018, Ashmore posted net inflows of USD4.3 billion on USD65.0 billion of asset under management.
"Net inflows continued through the quarter as clients responded positively to the opportunities created by price volatility across a broad range of emerging markets asset classes,"
said Mark Coombs, chief executive officer.
Ashmore said its net inflows were "broadly" spread across the fixed income themes of external debt, local currency, corporate debt and blended debt.
Inflows were offset by "small" net outflows in its overlay/liquidity, alternatives and multi-asset themes. Similarly, its net flows from its equities themes were "flat".
Ashmore said the markets during the quarter were "volatile", particularly in its local currency-denominated themes. The asset manager believes, however, the sentiment in "certain high profile" countries improved towards the end of the period.
The FTSE 250-listed investment manager's absolute investment performance lagged in its local currency and equities themes on the strength of the US dollar.
Coombs added: "Ashmore's active investment processes have been selectively adding risk and relative performance remains strong. Given the likelihood for mispricing around near-term events such as elections in the US and several emerging markets countries, we anticipate there will be more opportunities to buy attractively-valued assets and to embed long-term value into portfolios."
Shares in Ashmore were up 0.9% Friday morning at 348.40 pence each.
The emerging markets asset manager's trading update came as the International Monetary Fund warned that continuing trade tensions could slash Asia's growth by almost 1% in coming years.
The strengthening of the dollar, rising US interest rates and oil prices and trade tensions are creating headwinds that have put pressure on emerging market economies including those in Asia, according to Changyong Rhee, the IMF's director for Asia and the Pacific.
"The Asia region as a whole would see a peak of GDP loss of up to 0.9%," Rhee said at the launch of the IMF's Regional Economic Outlook with the World Bank in Bali, Indonesia.
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