* AuM $75 bln from $70.1 bln in March quarter
* Boosted by net inflows, investment performance
* Equity, bond funds draw in new money
* External debt, liquidity funds see outflows
* Shares up more than 4 pct
(Adds detail on performance, background)
By Simon Jessop
LONDON, July 10 Fund manager Ashmore Group
said on Thursday that assets under management increased
during its fourth quarter, partly reflecting improving investor
sentiment towards emerging markets.
Emerging-market-focused Ashmore said assets under management
rose to $75.0 billion at the end of the three months to June, up
from $70.1 billion in the previous quarter which had been hit by
large client outflows.
The group's shares were up more than 4 percent by 0706 GMT.
The increase in assets came through a combination of net
inflows totalling $1.6 billion and positive investment
performance of $3.3 billion, it said.
"Improving sentiment and the consequent market recovery have
benefited those investors who remained focused on the economic
and political fundamentals in emerging markets and who took the
opportunity to invest in mis-priced assets earlier in the year,"
Chief Executive Mark Coombs said in a statement.
Investors have turned more positive on emerging markets this
year after a pull-back in 2013 in response to uncertainty over a
potential tightening U.S. monetary policy and slowing China
Ashmore said new money entered a range of its fixed income
and equities funds, although there were net outflows from its
external debt and overlay/liquidity funds.
An improvement in the performance of Ashmore's investments
also helped buoy assets under management over the quarter, with
all themes contributing except alternatives and its
overlay/liquidity products, which were flat.
Investment returns were particularly strong in the blended
debt, local currency, external debt and equities themes, Ashmore
Since the start of the year, the MSCI Emerging Market
index has risen 6 percent, after a 5 percent fall in
Ashmore trades at 15.3 times its 12 months forward earnings
estimate, nearly 10 percent above the five-year median figure,
Thomson Reuters StarMine data showed.
Its shares have dropped 11.6 percent so far this year,
underperforming a 0.5 percent decline in the FTSE 100 index. Of
18 analysts tracking the company, five rate it a "buy" or a
"strong buy", a drop from seven three months ago, StarMine data
(Additional reporting by Nishant Kumar; editing by Matt
Scuffham and Jane Merriman)