Ashmore Group PLC on Monday reported an increase in assets under management in the three months that ended March 31, due to a positive market environment.

Ashmore is a London-based emerging markets investment manager.

The asset manager said in the third quarter ended on March 31, assets under management increased by $500 million to an estimated $57.7 billion.

At December 31, Ashmore had $57.2 billion in AuM, up from $56.0 billion on September 30. Ashmore said the increase in the recent quarter was due to a positive investment performance of $1.6 billion and net outflows of $1.1 billion.

Ashmore said net outflows continued to reduce in the quarter, reflecting the ‘more positive Emerging Markets environment over the past six months alongside investors recognising the superior growth prospects and attractive valuations available across equity and fixed income Emerging Markets’.

Fixed income assets increased to $50.4 billion on March 31 from $49.9 billion on December 31, but equities assets dropped to $5.9 billion from $6.0 billion.

‘Emerging Markets assets delivered positive returns over the three months, with local currency bonds and equities benefiting from currency appreciation and the rally in the US bond market supporting returns in hard currency investment themes,’ Ashmore said.

Chief Executive Mark Coombs said: ‘While volatility returned to capital markets in the quarter, driven primarily by the developed world as higher rates caused stresses in the banking system, Emerging Markets delivered positive performance. These markets continue to have attractive prospects centred on cheap valuations, superior economic growth and the potential for interest rate cuts as inflation has already started to fall.’

Ashmore shares were up 0.2% at 249.40 pence each on Monday morning in London.

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