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Ashmore navigates GEM turbulence to post £8.5bn inflow
by Dylan Lobo on Sep 10, 2013 at 07:46
Emerging markets specialist Ashmore defied the turbulence in its asset class to post an annual net inflow of $13.4 billion (£8.5 billion).
This helped assets under management increase by 22% from $63.7 billion to $77.4 billion in the 12 months to 30 June.
Investment performance contributed US$0.3 billion to this growth. Ashmore said this 'masks' good performance for the majority of the year negated by the sharp market declines in the fourth quarter, catalysed primarily by concerns over a reduction in quantitative easing (QE) in the US.
However, it highlighted the percentage of AuM outperforming benchmarks at 30 June 2013 was very good, at 92% over three years (30 June 2012: 86%) and 96% over one year (30 June 2012: 23%).
Other key indicators showed the firm enjoyed record gross subscriptions of $27.2 billion, primarily into its debt themes and particularly local currency and corporate debt, while its equity proposition achieved gross subscriptions in each of the four quarters.
Net revenue was 7% higher at £355.5 million, while profit rose from £225.1 millon to £232 million.
Gross redemptions increased in absolute terms to US$13.8 billion (FY2011/12: US$11.7 billion) but at 19% of average AuM (FY2011/12: 18%) remained at a reasonable level and low by industry standards.
With quantitative easing (QE) likely to cause more volatility in emerging markets in the immediate future, Ashmore urged investors not to forget the long-term story.
Its chief executive Mark Coombs told the stockmarket: 'The fundamental emerging markets story remains strong and resilient, and is represented by the established and powerful GDP per capita convergence trend.
'While emerging markets GDP per capita has grown rapidly, in absolute terms it is still only comparable to developed markets in 1980, with many economies at a far earlier stage of development.'
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