Ashmore takes hit from emerging markets

Ashmore, a specialist emerging markets manager, saw its assets under management (AUM) decline in the final business period of 2016 due to negative performance and net outflows.

The firm had previously ended a string of AUM declines when, in the third quarter (Q3) last year, Ashmore saw its assets rise on the back of increased valuations in the emerging markets even though investor flows had remained flat throughout the year.

But Ashmore’s latest figures for Q4 2016 show that assets under management declined by US$2.4 billion (€2.3 billion), comprising negative investment performance of $1.7 billion and net outflows of $700 million.

Mark Coombs, chief executive officer of Ashmore, said: “Emerging markets produced very strong investment returns in 2016 and delivered a 5% increase in Ashmore’s AuM over the calendar year. This was despite the final quarter being impacted by the US election outcome, renewed strength in the US dollar, and a steepening of yield curves.

“While these factors interrupted the improvement in sentiment towards emerging markets, the effect proved to be short-lived with asset prices strengthening in December and continuing into the new year.”

He added that the combination of “attractive” absolute and relative returns, accelerating GDP growth, and low allocations all “support the expectation of further strong performance in 2017 and a return to the improving flow trend seen for most of 2016”.

©2017 funds europe

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