The share price of Ashmore Group (LSE: ASHM) is currently up over 3%, following the publication of a statement of assets under management for the fourth quarter. The British specialist manager of emerging markets assets said that its estimated assets under management had increased by 7% over quarter three, rising to $75bn. The increase came from a combination of $1.6bn from net inflows and $3.3bn from “positive investment performance.”
The company said that net inflows came across a range of equities and fixed income products. Ashmore also said that the expected outflows from Japanese retail funds had been offset by institutional demand for its multi-strategy products (assets under management up 12.5%) and that there was “good demand” for products in the corporate debt, blended debt, and local currency asset investment themes, which saw increases of 15.5%, 18.8% and 8.8%, respectively, in assets under management .
Assets under management in Ashmore’s alternative investment products remained unchanged from Q3, but those in external debt and overlay/liquidity (which helps investors manage its currency exposures) both fell, by 0.8% and 10% respectively.
Commenting on the statement, Ashmore CEO Mark Coombs said:
“Improving sentiment and the consequent market recovery have benefited those investors who remained focused on the economic and political fundamentals in Emerging Markets and who took the opportunity to invest in mis-priced assets earlier in the year. Looking ahead, the prospects for investment returns are enhanced by the on-going development of the asset class. New countries being represented in indices broadens the diverse range of opportunities available and supports increasing allocations by dedicated investors.“
At 366.4p, Ashmore’s share price is currently down close to 8% so far in 2014, versus an essentially flat FTSE 100 (it’s down just 0.4%). But over five years, Ashmore is beating the index, recording a close to 100% rise, compared to a 63% increase in the FTSE 100.
