Ashmore Group (LON:ASHM) shares jumped sharply on Thursday, hitting an 18% gain by lunchtime, after the asset manager revealed a strong quarter of growth in emerging markets investments.
The specialist emerging markets asset manager reported total AuM of $52.5 billion at the end of December, up nearly 8% from September, thanks to $2.6 billion in net inflows and $1.2 billion from investment gains. This marks the firm’s first sustained net inflows in years.
Investor interest was broad, spanning both fixed income and equities, as emerging markets regained appeal amid a backdrop of strong economic growth, lower inflation, and interest rate cuts in multiple countries. Ashmore noted that portfolios heavily weighted to the US had prompted investors to diversify.
CEO Mark Coombs highlighted the favourable conditions: “Investors are recognising the attractive risk/reward opportunities in emerging markets. With economic growth outpacing developed countries, central banks cutting rates, and a weaker US dollar, allocations to these markets make sense. Active management remains key to navigating the complexity.”
The firm’s update signals a potential turning point after years of outflows, and underscores growing appetite among investors seeking exposure beyond traditional developed-market assets.