Ashmore Group (LSE:ASHM) reported a 3% increase in assets under management as stronger emerging market performance offset $0.8 billion of net outflows.
AUM ended the final quarter of the specialist emerging markets investment group's financial year at $47.6 billion, up from $46.2 billion at the end of March.
The rise was driven by positive investment performance of US$2.2 billion, partially offset by net outflows that improved from the previous quarter due to lower redemptions.
Chief executive Mark Coombs pointed out that emerging markets outperformed developed world equity and bond markets, in part due to the ongoing weakness in the US dollar.
"Consequently, investors are beginning to rebalance portfolios away from heavily overweight US positions towards more attractively valued asset classes, including those in EM," he said.
Recent mutual fund inflows into emerging markets have been concentrated in exchange-traded funds, Coombs noted, saying this has previously been "a precursor to broader institutional behaviour".
If this reallocation trend continues, he said the FTSE 250 group's product range and recent proven investment outperformance mean it is "well-positioned to participate".
Equities AuM rose 10% to US$7.50 billion. Corporate debt increased 6% to US$5.20 billion. External debt and local currency strategies rose 3% and 1%, respectively. Blended debt and alternatives remained unchanged.
Ashmore funded new equity mandates during the quarter and launched an impact debt strategy. The group also opened a new office in Qatar.