Ashmore Rallies as Investors Return to Emerging Markets
Ashmore increased its assets under management 7 percent to $75 billion in the three months to June 30, boosted by client contributions and $3.3 billion from its investments, the London-based company said in a statement today. The shares climbed 2.4 percent to 363 pence at 10:06 a.m. local time.
“Improving sentiment and the consequent market recovery have benefited those investors who remained focused on emerging markets,” Chief Executive Officer Mark Coombs said in the statement. They “took the opportunity to invest in mis-priced assets earlier in the year.”
Ashmore reported in February $2.9 billion of net outflows and a slump in first-half profit as reduced stimulus from the U.S. Federal Reserve tempered demand for riskier assets. The shares are still down 9.4 percent this year while larger competitor Aberdeen Asset Management Plc (ADN), which invests about two-thirds of its assets in emerging markets, has lost 10 percent.
Ashmore is scheduled to report results for its fiscal year to June 30 on Sept. 11.
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