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Money Management

Ashmore Group records 11% jump in AUM in the quarter

Emerging markets specialist manager Ashmore Group recorded net inflows of $4.3 billion for the three months ended Sept. 30, helping to bolster assets under management 11% to an estimated $65 billion.

Assets under management grew 19% over the 12 months ended Sept. 30. Net inflows were $1.2 billion for the three months ended June 30 and were flat for the year-earlier quarter, according to a spokeswoman.

Overlay and liquidity strategies recorded a 25% increase in AUM to $6 billion. The financial update said Ashmore's equity interest in Taiping Fund Management Co. was reduced to 8.5% in August from 15%. This resulted in a $300 million reduction in assets under management in this segment.

A 28.8% jump in assets to $18.8 billion was recorded across blended debt strategies in the quarter. The update said $2.2 billion in assets were reclassified into the blended debt sector as a result of changes to benchmarks or investment guidelines. The majority of the assets, at $2 billion, were in local currency strategies and the remainder in external debt.

External debt assets grew 8.3% to $14.4 billion, but local currency assets fell 7.3% to $12.7 billion as a result of the reclassifications.

Corporate debt assets grew 10% to $6.9 billion, and alternatives assets grew 7% to $1.6 billion. Equities strategies run by Ashmore grew 3% to $3.5 billion.

Investment performance also added $2.3 billion to total AUM in the quarter.

Net inflows were recorded in external and blended debt, overlay and liquidity strategies, local currency, corporate debt and alternatives. Flows were flat in equities, while multiasset strategies recorded a small net outflow "as a result of the anticipated run-off of Japanese retail funds," said the update.

"Investors are increasingly focusing on emerging markets and it is encouraging to see strong inflows this quarter," said CEO Mark Coombs in the update. "Emerging markets are continuing to outperform as we would expect at this point in the cycle, with perceived challenges such as rising U.S. interest rates having been anticipated and priced in. Ashmore's investment performance continues to be very strong, meaning the group is well positioned as investors address their underweight allocations to emerging markets."