Ashmore enjoys assets surge

It is hard to fault the latter contention. But for those still doubting the steady reorientation of institutional and retail portfolios towards emerging markets – economies, it should be noted, which comprise around 60 per cent of global GDP and 85 per cent of the world’s population – Ashmore’s preliminary results offer real food for thought.

As previously disclosed, assets under management grew 24 per cent to $91.8bn (£74.6bn) in the period, thanks to strong net inflows and a positive investment performance. Anecdotal evidence suggests this wave will strengthen. Group finance director Tom Shippey says institutional investor clients, of which around two-thirds are based in the developed world, have historically allocated between 5 and 10 per cent of funds to emerging market mandates. Neutral global benchmark weightings are closer to 15 to 20 per cent, and only likely to increase.

Retail investors have got the message. In the year to June, robust demand for short duration, local currency bonds and blended debt products meant assets sourced through intermediaries in Asia, Europe and the US surged by 29 per cent to $12.7bn. Over the course of three years, intermediary retail funds have grown at almost twice the rate of the group’s already impressive annual growth rate of 20.4 per cent.

Even more encouragingly, group-wide funds continue to beat their peers. During the year, 90 per cent performed above their benchmarks, and the proportion rises to 97 per cent on a three- and five-year time horizon. Unfortunately, the timing of crystallisation dates and the rocky final quarter of the 2018 calendar year meant performance fees collapsed 87 per cent to £2.8m, although this was partly offset by positive movements in foreign exchange.

Consensus forecasts are for earnings of 29.4p per share for the year to June 2020.