Ashmore Group (LSE:ASHM) stemmed net outflows over the first half of the year despite tough conditions most recently around the US election and bond market chaos.
Net outflows totalled US$1.1 billion (£0.9 billion) in the six months to the end of December, against US$4.5 billion a year ago, the emerging markets asset manager said Friday.
Assets under management dipped slightly from US$49.3 billion to US$48.8 billion in the meantime, as strong trading over the first quarter was said to have reversed in the second.
Index returns had been “strong” in the quarter to September as the Fed cut interest initially and Beijing laid out measures to stimulate the Chinese equity market.
However, returns turned negative in the second quarter on positioning for the US election, renewed dollar strength and hawkish commentary from the Fed, which hit bond markets.
Adjusted revenue dropped from £93.4 million to £79.9 million over the first half, as pre-tax profit slipped from £54.0 million to £44.1 million on lower fees and currency headwinds.
Ashmore added the implications of Donald Trump’s US election win remained “to be seen,” including around policy decisions under the new administration.
“There are strong arguments for investors to rebalance allocations from heavily overweight US positions in favour of the attractive valuations and investment opportunities in emerging markets,” chief executive Mark Coombs said.
“Ashmore's active investment management processes are delivering for clients and the group is well-positioned to navigate the asset price volatility resulting from the US election.”