Ashmore’s CEO Mark Coombs noted the uptick in investment performance in Q4 of 2023 as talk of cuts spread across markets. According to Yahoo Finance, Ashmore’s funds managed to offset negative flows of $1.6bn in Q4 and gained a positive investment of $3.9bn in the same period.
Emerging Markets delivered good returns and outperformed most developed world indices in 2023 due to superior economic growth, effective monetary policies and the benefits of a weaker US dollar as the Fed reaches the end of its tightening cycle.
The management firm confirmed that the prospect of the US Federal Reserve lessening monetary policy helped to lift asset values under management rose by $2.3bn to $54bn to close 2023.
These factors, along with attractive absolute and relative valuations, will support emerging markets’ asset prices in 2024, leading to outperformance and higher allocations from investors who currently have significantly underweight allocations to emerging markets.
David McCann, equity analyst at Deutsche Numis, expressed his awareness of prolonged market strains:
We think the challenges facing the traditional part of the industry look set to remain in place as structural problems.
Ashmore is among the London-based asset management firms affected by the inflation squeeze since 2020 as investors have slowly but surely pulled their money away from the market into less risky deals.
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