Emerging markets back in favour as Ashmore’s assets rise again

Emerging markets back in favour as Ashmore’s assets rise again

Emerging markets fund manager Ashmore has seen its assets rise for the second time since January as investors pour money back into developing markets.

Assets at the fund house rose $2.8bn (£2.1bn) in the three months to June 30 as it attracted $1.2bn (£0.9bn) in new money, continuing a strong run from the previous quarter which saw it report its first net inflow since 2014.

The turnaround indicates investors are willing to bet on emerging markets again, following a period plagued by concerns over low oil prices, the US election and slow economic growth that saw customers take out their money.

Fears that the election of Donald Trump as US president would have a knock-on effect on developing markets, for example, saw the FTSE 250 company’s assets fall $2.4bn (£2.0bn) in the final three months of 2016.

Although turbulence in key markets such as China, Brazil and Russia knocked off a fifth of Ashmore’s revenues in its last set of full-year results, chief financial officer Tom Shippey said at the time investors would return to more adventurous markets in the search for yields.

Chief executive Mark Coombs said the latest set of results shows that “emerging markets asset prices have started to reflect the resilient fundamentals of the underlying economies and investor activity levels are responding.”

Looking ahead, he said there is “substantial absolute and relative value still available in emerging markets and investor allocations have much further to run from their significantly underweight levels.”

Despite the rise for the quarter, which takes Ashmore’s assets under management to an estimated $58.7bn (£45.2bn), Ashmore’s shares fell 3pc on Friday.