Ashmore Group's assets under management increased 3% to an estimated $52.6 billion during the three months ended June 30, with positive investment performance more than offsetting net outflows, a financial update showed.
For the year ended June 30, Ashmore's AUM was down 10.7%.
The emerging markets specialist said investment performance added $2 billion to assets, while net outflows totaled $700 million over the quarter ended June 30. For the three months ended March 31, investment performance added $3 billion, with $1.1 billion of net outflows.
Net outflows for the quarter were recorded in external debt, blended debt, equities, local currency and multiasset strategies. Alternatives and overlay/liquidity strategies had neutral flows, while corporate debt had a small net inflow in the three months.
However, three strategies recorded increased assets under management thanks in part to positive investment performance. Corporate debt added 9% to total $5 billion, external debt assets increased to $11.7 billion, up 6% over the quarter, and local currency strategies saw assets increase 2%, to $13.3 billion. Ashmore said positive investment performance was notable in blended debt, external debt, local currency and corporate debt strategies but was flat across alternatives and overlay/liquidity strategies.
In a statement accompanying the financial update, Ashmore said previous headwinds facing emerging markets — falling commodity prices and a strong U.S. dollar vs. emerging markets currencies — abated.
“These asset classes are among the best performing so far in 2016, for example local currency bonds have returned 14% and yield over 6%,” said Mark Coombs, CEO at Ashmore Group, in the statement. He cited higher GDP growth, low and stable inflation, flexible monetary policies and improving current accounts as supporting attractive yields and uncorrelated equity returns. “In contrast, developed markets offer lower returns and appear to have mispriced economic and political risks.”