Ashmore Group, the London-listed emerging markets asset manager, has beaten analyst expectations with net inflows of $800m for the three months to the end of June, as client demand rebounds from a prolonged period of caution. The figure comfortably exceeded the $500m consensus forecast, pushing total assets under management to $54.4bn.
The positive trading update sent Ashmore's shares 3.8% higher on the FTSE 250, making it one of the best performers on the mid-cap index. The broader FTSE 250 edged up 0.2% on the day, while the FTSE 100 was largely flat, with investors digesting mixed economic data from the UK and US.
Analysts at Numis said the results reflected a 'marked improvement in investor appetite for emerging market debt and equities', noting that Ashmore's fixed-income strategies had been the primary driver of inflows. 'After a challenging 18 months, the tide appears to be turning for dedicated emerging market managers,' they added.
The recovery in flows is significant for UK pension funds and retail investors who allocate capital to emerging markets through Ashmore's funds. Many schemes had reduced exposure amid rising interest rates and geopolitical tensions, but the latest data suggests a cautious return to the asset class as central banks in developing economies begin to cut rates.
Ashmore's management said the improvement was broad-based across its product range, with particular strength in local currency bonds and corporate debt. The firm maintained its dividend policy, though no specific payout was announced alongside the trading statement.