October 14, 2019 / 6:28 AM / a month ago

UPDATE 1-Ashmore Q1 assets flat as inflows offset investment losses

* Q1 assets $91.9 bln vs $91.8 bln at end-June

* Net inflows $2.4 bln offset by investment losses

* Institutional clients drive flows (Adds detail from statement, background, CEO quote, bullet points)

By Simon Jessop

LONDON, Oct 14 (Reuters) - Emerging markets-focused money manager Ashmore said assets under management were broadly flat at the end of September from the prior quarter, as inflows of client cash offset investment losses.

Assets under management were $91.9 billion against $91.8 billion at the end of June, with net inflows of $2.4 billion offset by negative investment performance of $2.3 billion, it said in a statement.

London-based Ashmore said it saw broad demand for most of its strategies, with net inflows into every investment theme except alternatives, which was flat, and a small net outflow in multi-asset.

Net inflows were highest in its blended debt, external debt, local currency, equities and corporate debt strategies, driven by demand from institutional clients despite a small outflow of cash from retail clients.

Despite taking in more new money, total assets were held back by investment losses as dollar strength weighed on emerging market currency and equity market returns.

Absolute performance was negative in corporate debt, blended debt, local currency and equities it said.

The company said its relative investment performance remains strong over three and five years, but has weakened over one year as a consequence of recent market volatility.

“While the global macro environment remains uncertain, the low yields and relatively high equity valuations in Developed Markets mean investors’ returns are enhanced by increasing their allocations to the diverse and resilient range of emerging economies in both fixed income and equities,” Chief Executive Mark Coombs said. (Reporting by Simon Jessop Editing by Rachel Armstrong)

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