“In aggregate, net outflows reduced from the prior quarter with a modest improvement in new subscriptions as some clients acted to take advantage of the value available in a number of Emerging Markets asset classes,” the firm said in its report for the third quarter.
According to Ashmore, while blended debt, corporate debt external debt, multi-strategy and local currency experienced net outflows, equities and overlay/liquidity were flat
Investment performance too took a hit, falling $600m during the quarter on the back of the continuing dollar strength, which affected local currency returns.
“The Group’s investment performance for the quarter therefore primarily reflects negative absolute performance in the local currency theme, although performance in this theme continues to be strong against benchmarks. Modest positive performance in external debt and overlay/liquidity was offset by negative performance in corporate debt, alternatives and multi-strategy. Blended debt and equities performance was flat over the period,” it said.
Mark Coombs, Ashmore Group CEO, said: “Those investors willing to look beyond short-term price volatility and to focus on fundamentals are benefiting from the recent recovery in markets. However, some investors remain cautious given continued uncertainties such as the timing and impact of higher US interest rates.
Adding: “In our experience, while flows tend to lag investment performance, the absolute and relative value opportunities across the range of emerging markets asset classes will increasingly be recognised by investors.”
Numis Securities, in a note out on the back of the numbers, said: “We continue to see Ashmore as a long term sector winner and EM as a long term growth theme and thus would regard any price weakness from here as an opportunity to buy into a good company that has some short term issues, where you are paid well to wait for better times to return.”
