Investor sentiment might be gleaned by the diverging fortunes of two London asset managers that are reporting their latest financials today.
Ashmore Group, a specialist emerging markets investor, has seen a drop in assets under management (AUM) – a sign that investors are still wary of the asset class.
Meanwhile, Jupiter Asset Management saw positive flows into a European growth fund to finish 2015 with higher AUM.
Ashmore’s latest results for the quarter ended December 31, 2015, show a drop in AUM of $1.7 billion (€1.6 billion). The company now manages $49.4 billion. Inflows into alternatives and overlay/liquidity strategies were offset by outflows from local currency and corporate debt, mainly by institutional clients in Europe and Asia Pacific.
Other investment themes in emerging markets, such as equities and multi-asset, were broadly flat over the same period which, according to Ashmore, reflected weaker markets at the end of the quarter that offset the strong market recovery in October.
Mark Coombs, chief executive officer of the firm, did not seem overly optimistic for emerging markets this year. He said: “The market weakness and volatility experienced in early 2016, notably in Chinese equity markets, will doubtless lead to some investors maintaining a cautious stance.”
However, he added that investors will risk missing some very good performance in emerging markets assets as attractive fundamentals begin to show through.
Conversely, Jupiter Asset Management enjoyed inflows of £549 million (€732 million) into its mutual funds during the same period, bringing its total AuM to £35.7 billion, as at December 31, 2015.The firm’s top selling funds included its European growth and dynamic bond strategies.
“2015 has been another good year for Jupiter, reflecting our strategy to diversify by product, client type and geography, all supported by strong investment performance,” said Maarten Slendebroek, chief executive of Jupiter.
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