Ashmore Rises as Pension Funds and Governments Boost Inflows

Ashmore Group Plc (ASHM) climbed to a three-month high after the U.K. fund manager reported record net inflows for the full year as pension funds and sovereign wealth funds continued to invest in emerging markets.

The stock rose for a seventh day, gaining 7.9 percent to 391.6 pence at 10:35 a.m. in London, the highest intraday level since June 5 as the company reported $13.4 billion of net inflows for the year ended June 30, from $1.3 billion in 2012, according to a statement. London-based Ashmore also announced a final dividend of 11.75 pence a share.

“We continued to have inflows in May and June,” Graeme Dell, Ashmore’s finance director, said in a telephone interview today. “This is reflected in a number of factors including our predominantly institutional base, which takes longer-term views. Fundamentals within emerging-market economies are very strong.”

Ashmore’s investors helped the company defy a slump in assets for fund managers focused on developing markets that has been triggered by concern the U.S. Federal Reserve will start to taper its record stimulus program as soon as this month. Scotland’s Aberdeen Asset Management Plc (ADN) reported its first quarterly outflows since 2011 in July as clients pulled money from its equity and emerging-market funds.

Ashmore increased assets under management 22 percent to $77.4 billion for the full year and increased both revenue and earnings before interest, tax, depreciation and amortization in the period by 7 percent.

BlackRock Inc. (BLK), the world’s largest money manager with $3.9 trillion in assets, said earlier today that emerging markets offer good long-term buying opportunities as economies globally improve. Robert Kapito, co-founder and president of New York-based BlackRock, said there is too much short-term emphasis in investing, and foreign investors should be diversified to survive this period of market volatility.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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