Ashmore shares jump as assets under management top forecast
Net outflows fall to $700 mln, best quarter in three years
AUM rose to $51.8 bln vs forecast $50.9 bln
Stock among top gainers on FTSE 250
Adds shares, peer analysis in paragraph 4, details in 7-9
By Yamini Kalia
Oct 14 (Reuters) -Emerging market-focused investor Ashmore Group ASHM.L reported higher than expected assets under management for its fiscal first quarter as clients warmed to riskier assets and returns improved in its core markets, boosting its shares on Monday.
CEO Mark Coombs attributed the performance to robust emerging market economies, the positive impact of lower U.S. interest rates, and economic stimulus policies in China.
While other UK-based fund managers are cautious about investor sentiment ahead of the new British government's first budget on Oct. 30, Ashmore has benefited from strong returns in its core markets.
Last week, peers Jupiter Fund JUP.L and Liontrust Asset Management LIO.L, which are heavily exposed to the UK market, both reported declines in their managed assets as uncertainties around potential budget tax changes worried investors.
Ashmore shares rose as much as 13% to 220 pence in early trading, among the top gainers on the FTSE midcap .FTMC index. They had fallen about 16% this year prior to the trading update.
The company's net outflows fell to $700 million in the quarter, the lowest in three years, from $2 billion the previous quarter.
In September, the fund manager had said its core markets were demonstrating resilience to shocks, with growth gathering momentum into 2025.
Ashmore said its assets under management reached $51.8 billion in the quarter ended September, against analysts' consensus forecast of $50.9 billion and up from $49.3 billion at the end of June.
"We continue to believe that flows will improve further and that when investors decide to commit to emerging markets, flows will substantially outperform the standard assumption of a shallow recovery which forms consensus," said analysts at Panmure Liberum.
Reporting by Yamini Kalia in Bengaluru; Editing by Rashmi Aich
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