Ashmore gains as investors pivot to emerging markets

Ashmore, the London-based wealth manager with a firm eye on emerging markets, has reported a rise in assets under management (AUM) in the fourth quarter, climbing 3% to reach $47.6 billion as of 30 June. The gain comes as investors increasingly favour emerging market equities over their developed-world counterparts, drawn by more attractive valuations and a faltering U.S. dollar.

According to the firm, the shift stems from growing unease over U.S. trade policy under President Trump, whose unpredictable approach to tariffs has unsettled global markets and weakened the greenback. "Emerging markets continue to outperform developed world equity and bond markets, in part due to the ongoing weakness in the U.S. dollar," said Chief Executive Mark Coombs.

While appetite for equities proved strong, Ashmore saw net outflows of $800 million during the quarter, largely due to investor withdrawals from blended debt, local currency and corporate debt funds. Nonetheless, the uptick in equity inflows helped the firm meet consensus expectations for AUM growth.

According to Jefferies, net outflows improved significantly to -$0.8 billion from -$3.9 billion the previous quarter due to reduced redemptions despite subdued investor risk appetite. Early signs of ETF flows into emerging markets could signal a broader institutional shift, though Jefferies expects little change to consensus estimates.