Ashmore Group, an emerging markets specialist, claims investor sentiment towards the asset class is improving as it reported reduced outflows today.
Ashmore, based in London, reported a 5% rise in assets under management (AUM) to $52.5 billion (€49.8 billion).
Outflows in the last half of 2016 were $700 million, an improvement on the first six months’ outflows of $1.8 billion.
Mark Coombs, CEO, said: “Emerging markets produced very strong investment returns in 2016 and delivered a 5% increase in Ashmore’s AuM over the calendar year.”
Together with “strong” relative investment performance and favourable currency movements, this delivered a 94% increase in Ashmore’s profit before tax.
“While the US election outcome interrupted the improvement in sentiment towards emerging markets, the effect has been short-lived with asset prices strengthening into 2017,” Coombs said.
The company said 91% of its AuM outperformed benchmarks over one year, 81% over three years and 86% over five years.
Net revenue increased 24% to £144.1 million.
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