Ashmore flows flat despite emerging market recovery

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Ashmore Group posted a 4 per cent increase in assets in the first quarter of the financial year but net flows remained flat despite an emerging markets recovery.

In a trading update published today, the emerging market-focused fund said assets under management rose to $54.6bn (£44.77bn) from $52.6bn at the end of June.

The increase in assets was mostly attributed to a positive investment performance in debt, equities and multi-asset classes, with neutral performance in alternatives and overlay strategy.

Net flows in the fund were “neutral” for the quarter with small net inflows into the blended debt, local currency, corporate debt and and liquidity themes, although this was offset by net outflows from equities, external debt, and multi-asset.

Ashmore Group chief executive Mark Coombs says the improvement in net flows in the period was “encouraging” given the increasing stability of emerging markets over recent months compared to the same quarter in 2015 and 2014.

He says: “The ongoing recovery in emerging markets asset prices through 2016 and the attractive returns on offer across a diverse range of investment themes are causing investors to reconsider their underweight positions.

“This inevitably takes time, but Ashmore’s consistent investment processes are delivering strong outperformance across fixed income and equities, putting Ashmore in a good position to capture allocations.”