No China crisis for Ashmore as assets swell

EMERGING markets fund manager Ashmore has shrugged off fears of a slowdown in China as it yesterday posted a boost of more than nine per cent to its assets in its third quarter.

Finance director Graeme Dell told City A.M. there could be pitfalls in Chinese growth – factory output fell there last month – but said the “size and dynamic” of the economy continue to make it attractive.

“We remain positive for the long term outlook for China.”

Dell said overall Ashmore had invested more in buying assets, particularly corporate debt, in November and December last year and reaped the benefits in the quarter.

Assets under management rose 9.1 per cent to $65.9bn (£41.3bn) in the first three months of this year. Investment performance added $4.3bn to assets, complementing a net inflow of $1.2bn in new money.

“Consistent with Ashmore’s long standing investment approach of adding risk during periods of market volatility... all investment themes have subsequently delivered positive investment performance in what has been a strong third quarter,” it said.

Holdings in equities, debt and local currencies contributed most to the increase in assets, Ashmore added, saying the group’s performance was in line with expectations. However it experienced “modest net outflows” in equities and blended debt products during the period.

Numis analyst David McCann rated Ashmore a “hold” and said future growth in earnings “may not be as strong” as the growth potential of assets under management.

Shares closed up 0.9 per cent.