Ashmore Group Plc (ASHM), a U.K. fund manager that invests in emerging markets, rose after the firm reported assets under management that beat analyst expectations.
The shares gained as much as 8 percent in London trading, after the company said in a statement today that it ended June managing $77.4 billion, compared with $77.7 billion in March. Sarah Ing, an Oriel Securities Ltd. analyst in London, estimated that assets would fall to $74.3 billion, while Societe Generale SA’s Michael Sanderson predicted a decline to $73.9 billion, according to data compiled by Bloomberg.
Ashmore defied a slump in assets for fund managers focused on emerging markets, which has been triggered by investor concerns about slowing economic growth and that developing nations will be hurt as the U.S. Federal Reserve pulls back from its record stimulus. London-based Ashmore said its clients added $4.5 billion in the second quarter, with the strongest flows into funds investing in currencies and corporate bonds.
“Market conditions were clearly more challenging toward the end of the quarter, but emerging-markets fundamentals remain intact,” Chief Executive Officer Mark Coombs said in the statement. Assets under management were hurt by $4.8 billion of investment losses, Ashmore said.
The shares rose 28.1 pence to 379.7 pence, or 8 percent, at 9:08 a.m. in London, valuing the company at 2.7 billion pounds ($4 billion). Ashmore has gained 5.5 percent this year.
Investors have pulled $13.9 billion from equity mutual funds investing in Brazil, Russia, China and India this year, according to EPFR Global, a Cambridge, Massachusetts-based firm that tracks fund flows. The total accounts for 27 percent of all inflows since 2005.
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