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UPDATE 1-Emerging markets specialist Ashmore says Q4 assets up 5 pct
July 14, 2017 / 7:25 AM / 5 months ago

UPDATE 1-Emerging markets specialist Ashmore says Q4 assets up 5 pct

* Total assets at end-June $58.7 bln

* Net inflows of $1.2 bln, performance gains $1.6 bln

* Shares flat, in line with the mid-cap index (Adds detail from statement, CEO quote, analyst reaction, share price, bullet points)

By Simon Jessop

LONDON, July 14 (Reuters) - Emerging markets-focused fund manager Ashmore posted a 5 percent rise in fourth-quarter assets on Friday, boosted by net inflows of new client cash and gains from its investments.

Total assets in the quarter to the end of June were $58.7 billion, it said in a statement, with net inflows of $1.2 billion and a positive investment performance of $1.6 billion.

The company said it had seen net inflows into its blended debt, corporate debt, equities and alternatives strategies, but a net outflow from local currency after one large institutional investor chose to redeem.

Performance was positive across fixed income and equities, with a particularly strong performance in local currency and external debt, it said, although gains were flat in multi-asset, alternatives and in its liquidity and overlay strategies.

“Emerging Markets asset prices have started to reflect the resilient fundamentals of the underlying economies and investor activity levels are responding,” Chief Executive Mark Coombs said in the statement.

“Looking ahead, there is substantial absolute and relative value still available in Emerging Markets and investor allocations have much further to run from their significantly underweight levels.”

Shares in Ashmore were flat in early deals, in line with the mid-cap index.

“This marks the second consecutive quarter of positive net flows highlighting improving investor sentiments towards EM debt products,” Morgan Stanley analyst Anil Sharma said in a note.

“Longer term, institutional portfolio allocations to EM debt remain at low levels and we would expect this to change, which presents a tailwind for Ashmore,” he added, flagging an ‘equal-weight’ rating on the stock and 385 pence price target. (Reporting by Simon Jessop)

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