Emerging markets specialist Ashmore Group saw a small increase in assets under management (AUM) during the second quarter on the back of $500 million (€436.78 million) of net inflows.
However, “modestly negative” performance of $200 million impeded growth, which Ashmore said reflected weaker global market conditions in October, while positive performance was delivered in the rest of the quarter.
AUM increased 0.4% over the quarter to $76.7 billion.
Various asset classes, including corporate debt, equities and multi-asset shared the inflows, but investors were less favourable toward local-currency debt which saw small net outflows despite a positive performance against a weakening US dollar.
Mark Coombs, chief executive officer of Ashmore Group, acknowledged investors had very low allocations to emerging markets but client inflows showed recognition of the value available.
He added: “The effect of tax-related stimulus on the US economy and its support for the US dollar started to fade towards the year end, removing the main headwind for emerging markets outperformance. The reduction in emerging markets asset prices despite improving economic growth suggests underweight investors will continue increasing allocations to emerging markets, and a return to the positive market trends experienced in 2016 and 2017.”
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