Small asset rise at Ashmore

City A.M. Reporter
UK FUND manager Ashmore Group yesterday reported a small rise in assets in the fourth quarter, helped by inflows into debt products and a recovery in its core emerging markets.

Ashmore said assets grew 2.5 per cent to $60.4bn (£39.4bn), driven by $500m of net inflows and $1bn in positive performance.

The numbers beat a forecast of $59.4bn from brokerage Numis, which maintained its “hold” recommendation on the stock.

“We still regard EM [emerging markets] debt as a relatively safe place in the short term, in contrast to western debt in a ‘risk off’ environment, given the generally lower indebtedness and higher real growth rates expected in EM economies, albeit short-term asset class outflow risk remains,” Numis said.

A rocky period for emerging markets last year hit Ashmore’s asset base and the fees it collects on funds.

The group managed $65.8bn at the end of June, before a sharp sell-off in markets which slashed the assets it manages by more than 10 per cent. Performance fees for funds having a performance ending in December were “minimal,” as anticipated, Ashmore said, which meant overall performance fees for the six months to the end of December were around £23m.

In the same sector Charlemagne Capital said its assets had fallen by more than a third last year after a slump in emerging markets, reducing net performance fees by almost 20 per cent for the year.

Dedicated emerging markets funds recorded their second-largest annual historic outflows last year, the company added.

The group now manages $2.3bn.