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Trump effect on emerging markets “shortlived”, says Ashmore CEO

Emerging markets3Ashmore 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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