UK's Ashmore tops inflow estimates on resilient emerging market asset demand (updated)
UPDATE 1-UK's Ashmore tops inflow estimates on resilient emerging market asset demand Adds details and background throughout, with analyst quote in bullet 5
July 14 (Reuters) - British asset manager Ashmore ASHM.L beat net inflow expectations on Tuesday as investors continued to allocate capital to higher-yielding emerging market assets despite geopolitical uncertainty linked to the Iran war.
Here are some more details:
Ashmore's assets under management rose by 7% to $54 billion for the quarter ended June 30, from the $50.7 billion it reported at the end of the March quarter.
The quarterly update marks a notable reversal for the London-listed firm which had reported a 3% decline in its managed-assets in its fiscal third quarter as the war tempered with investors' risk appetite and kept them cautious.
"Emerging markets performed well, demonstrating their diversity and resilience following the market volatility caused by the closure of the Strait of Hormuz and the corresponding oil price spike," CEO Mark Coombs said in a statement.
Ashmore posted net inflows of $1.3 billion for the quarter, compared with estimates of $700 million according to a company-compiled consensus. It reported $900 million of outflows in the previous quarter.
"We have argued that the combination of strong markets, good investment performance, and a sales team that can convert holds the potential to deliver materially better inflows than consensus assumes," Peel Hunt analysts said in a note.
(Reporting by Rishab Shaju and Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips)
((Rishab.shaju@thomsonreuters.com ; +91 9048142177))