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Money Management

Ashmore sees AUM increase 10% on $6.4 billion of net inflows in quarter

Ashmore Group, an emerging markets specialist manager, recorded net inflows of $6.4 billion in the quarter, helping to bolster assets under management 10% to $76.5 billion as of March 31.

AUM grew 36.8% over the 12 months ended March 31, according to a financial update.

Net inflows were $3.6 billion for the three months ended Dec. 31. Ashmore recorded net inflows of $1.4 billion in quarter ended March 31, 2017.

Blended debt strategies increased 11% in the quarter to $20.7 billion as of March 31, local currency assets grew 19% to $17.7 billion, external debt assets rose 1% to $15.3 billion, corporate debt assets increased 21% to $9.4 billion and equities strategies were up 10% to $4.3 billion. Overlay and liquidity strategies recorded a 2% increase in AUM to $6.4 billion, while alternative assets dropped 6% to $1.5 billion. Multiasset strategies were flat in the quarter at $1.2 billion.

Investment performance accounted for $600 million of the AUM gains.

"Over the medium to longer term, positive investor sentiment towards emerging markets will continue to be supported by attractive valuations, the need for institutional investors to address underweight allocations, better earnings and credit fundamentals, and relative currency strength arising from further U.S. dollar weakness," CEO Mark Coombs said in a news release.

Mr. Coombs added: "Significantly, the increased market volatility experienced over the past three months has had little effect on the fundamental drivers of returns in emerging markets and, as expected, both emerging markets fixed income and equity markets have outperformed. Volatility that originates in the developed world typically leads to emerging markets assets being mispriced."