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

Ashmore is a London-based emerging markets investment manager.

The asset manager said that in the final quarter of calendar 2022, its financial second quarter, assets under management increased by $1.2 billion to an estimated $57.2 billion.

At September 30, Ashmore had $56.0 billion in AuM, which had been down from $64.0 billion on the June 30. Ashmore said the increase in the recent quarter was due to a positive investment performance of $3.8 billion, offset by net outflows of $2.6 billion.

‘Reflecting a modest easing of global macro concerns, the Emerging Markets delivered strong returns over the quarter with the main fixed income and equity benchmark indices rising by between 5% and 10%. Ashmore’s active investment processes delivered outperformance in the period across a broad range of fixed income and equity strategies, reflecting the typical profile of alpha creation as markets begin to recover from oversold levels,’ Ashmore explained.

Fixed income assets increased by 2.6% to $49.9 billion on December 31 from $48.6 billion on September 30, while equities assets edged up to $6.0 billion from $5.9 billion over the quarter.

Chief Executive Officer Mark Coombs said: ‘Emerging Markets’ strong performance over the past three months reflects a positive shift in investor sentiment against a backdrop of light positioning and highly attractive valuations. Some of the headwinds of 2022, such as the Fed’s aggressive policy tightening, are receding, China re-opening its economy will stimulate activity more broadly, and a number of emerging countries are starting to see deflation as a consequence of effective monetary policy action over the past two years.

‘Therefore, we expect investor risk appetite to increase over the course of the next 12 months, underpinning further market performance and ultimately leading to capital flows into the Emerging Markets.’

The company will issue interim results on February 8.

Ashmore shares were down 1.0% at 268.80 pence each on Monday morning in London.

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