Ashmore sees assets rise as funds flow in

STRONG inflows have helped emerging markets fund manager Ashmore grow its assets under management (AUM) by 12 per cent to $46.7bn (£29.4bn) in its second quarter.

The surprise increase comes after investors flocked to join the fund, contributing to net inflows hitting $5.2bn, offsetting a $0.1bn drop in AUM due to adverse investment performance.

Analysts at Numis had estimated AUM would hit around $4.2bn, just one per cent up on its first quarter position, but the asset manager saw stronger than expected inflows.

The increase was mainly from net inflows in high-margin, multi-strategy products, as well as in its Asian retail focused products, accounting for the bulk of the new sales.

Yet analysts yesterday remained cautious on the news due to Ashmore’s emerging market (EM) focus, in case investors took flight from EM countries.

“If the current market vogue for EM funds changes, Ashmore could suffer badly from a combination of negative performance,” Numis said.

However the group said it was “confident of its prospects for the current year”.

Ashmore launched a range of retail-targeted products in February to broaden its revenue streams and diversify its client base, which has been dominated by institutions.

It said performance fees are estimated to hit £60m for its half-year when it updates the market towards the end of next month. Ashmore’s shares closed 4.7 per cent up at 358.5p.