Ashmore sees AUM rise on positive investment performance

Tue 14 Jul 2020

ASHM - Ashmore Group

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LONDON (SHARECAST) - (Sharecast News) - Asset manager Ashmore Group said on Tuesday that assets under management rose in the fourth quarter thanks to a positive investment performance throughout the quarter.
Ashmore said AUM increased 8.9% quarter-on-quarter to $83.6bn, driven by a strong investment performance of $9bn, although net outflows were $2.2bn.

The emerging markets focused asset manager said its "active investment processes" delivered high levels of outperformance in the three months ended 30 June and were now recovering the mark-to-market underperformance generated by sharp market declines in both February and March.

Ashmore stated the improved performance was a result of an improvement in investors' risk appetite following the combination of fiscal and monetary stimulus packages and the easing of Covid-19 restrictions in some economies.

Chief executive Mark Coombs said: "The global macroeconomic outlook remains uncertain, and the experience of individual countries will vary considerably, but it is increasingly apparent that the emerging markets in aggregate are less likely to suffer a recession as severe as that in the developed world.

"As investors continue to assess the impact of Covid-19 on their portfolios, there is a clear opportunity to enhance returns by increasing allocations to assets offering exposure to the superior domestic growth and yields that continue to be available across equity and fixed income markets in the emerging world."

As of 0845 BST, Ashmore shares were down 2.66% at 416.40p.
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