Bond ETFs lead Blackrock inflows while EM buoys Ashmore

Tatton also delivers positive results


Fixed income ETFs dominated Blackrock net inflows in the first quarter, accounting for almost half of the total £49.6bn ($65bn). in the first quarter of 2019, led by £23.4bn ($30.6bn) from iShares ETFs.

Net flows were up from £41.7bn ($54.63bn) a year earlier.

Larry Fink, chairman and CEO, said: “iShares once again captured the number one market share of global ETF industry flows, paced by a record $32bn of net inflows into fixed income ETFs. Our active franchise generated $14bn of net inflows, reflecting strength in active fixed income and a record quarter for illiquid alternatives, which included a first close of Long Term Private Capital, an innovative direct private equity vehicle that rounds out our comprehensive alternative investing capabilities.”

Blackrock reported a 5% decrease in base fees year-over-year, primarily reflected the impact of negative markets in the fourth quarter and the continued dollar appreciation.

Ashmore Group

Elsewhere, Ashmore Group’s AUM grew by £6.6bn ($8.6bn) in the first quarter of 2019, which is Ashmore’s third reporting quarter. This was as a result of £3.8bn ($5bn) in net inflows and positive investment performance of £2.75bn ($3.6bn)

Corporate debt rose the most by 30.6% from £8.2bn ($10.8bn) 31 December 2018 to £10.6bn ($14.1bn) on 31 March 2019, followed by multi asset which grew 25% from £0.3bn ($0.4bn) to £0.4bn ($0.5bn). Blended debt remained the group’s largest area, with AUM at £16.8bn ($22bn).

Mark Coombs, chief executive officer at Ashmore Group, said: “Client activity levels picked up through the quarter following a slight pause at the end of 2018.

“This reflects a number of ongoing positive factors including investors’ light positioning in emerging markets, the significant value available across a diverse range of investment themes and slowing growth and political challenges in the developed world.

The group outlined that absolute performance levels were highest in the blended debt and external debt themes, and despite US dollar strength in the latter part of the period, local currency and equities delivered good returns over the three months.

Tatton enjoys inflows despite difficult markets

Meanwhile, Tatton Investment Management (IM) reported a 24.5% annual growth in assets under management (AUM) for the year.

The update by Tatton Asset Management showed a £1.2bn increase in AUM for it’s discretionary fund manager arm, Tatton IM, bringing total assets to £6.1bn at 31 March 2019 despite a “complex and challenging environment”.

This was up from £4.9bn on 31 March 2018 and £5.7bn on 30 September 2018.

Net inflows over the past 12 months were £1.1bn with £500m attributed for the last six months.

Paul Hogarth (pictured), founder and CEO of Tatton AM, said he was pleased with the performance of Tatton IM in the face of difficult markets.

Hogarth said: “To the extent we are pleased with the mortgage services performance we are disappointed with the lack of growth of Paradigm Consulting though it remains an important component of the group’s strategic makeup.  The group remains well positioned to achieve continued growth and deliver against its stated strategy.”

Shares in Tatton Asset Management fell almost 7% this morning after the update.

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