Specialist emerging markets asset manager Ashmore Group (LSE:ASHM) plc increased its assets under management (AUM) by $2.5 billion sequentially in the first quarter.
The total AUM stood at $51.8 billion as of 20 September, marking a 5% quarter-over-quarter improvement. Net outflows decreased substantially, both on a monthly and yearly basis.
Ashmore’s results suggest an improving appetite for emerging markets investments, even if AUM only improved by 0.2% on a year-on-year basis.
Chief executive Mark Coombs attributed the improvement to a weakening US dollar, improved macroeconomics and Chinese fiscal stimulus plans.
“Investor appetite has been increasing and allocations to Emerging Markets should grow from the low current levels to capture the value available across equity and fixed-income asset classes,” said Coombs.
The US Dollar Index (DXY) fell more than 5% in the reporting period to account for the US Federal Reserve's jumbo 50-basis-point interest rate cut.
Ashmore’s primary investment, fixed income, saw a 5% AUM improvement. Alternatives, comprising private equity, healthcare, infrastructure, special situations, distressed debt and real estate, was the one segment to fall, with an 8%n decrease in AUM.