Emerging markets fund specialist Ashmore reported sluggish growth in the money that it manages today.
Ashmore Group said that assets under management had edged up to $55.9billion from $52.2billion in the first quarter of 2017. Of the additional $3.7billion, $2.3billion was attributed to the rise in value of investments made by the firm, and $1.4billion was net new money coming in from clients.
Markets were unimpressed by the figures, however, and the FTSE 250 company’s share price slid 5 per cent to 351.1p today.
Ashmore’s shares fell as it reported assets under management had edged up to $55.9billion from $52.2billion.
Ashmore said its core area of emerging markets ‘performed well’ over the last quarter both in absolute terms and relative to developed markets.
Equities and corporate debt were among the asset classes that saw rises of 7 per cent and 6 per cent respectively.
Those that saw falls included alternatives, which lost 7 percent of its value over the quarter. Ashmore’s multi-asset holdings were flat in value over the year.
Chief executive Mark Coombs added: ‘Ashmore delivered the anticipated return to net inflows this quarter, generated from a diverse range of existing and new clients, and the group’s investment processes are continuing to deliver strong performance over one, three and five years.’
‘The outperformance of emerging markets reflects accelerating economic growth and attractive absolute and relative valuations across Emerging Markets equity and fixed income markets,’ he added.
‘This increases the pressure on investors to address their underweight allocations.’
Ashmore’s figures reflect a tricky time for fund managers, who are dealing with both investors’ concerns over global uncertainty and the shift towards lower cost and more transparent passive index funds.
Ashmore Group specialises in emerging markets investments.