Ashmore Group's (LSE:ASHM) assets under management rose $3.3 billion, or 7%, in the quarter ending 30 June, the specialist emerging markets asset manager said in a trading update.
The increase comprised $2.0 billion of positive investment performance and $1.3 billion of net inflows.
Net inflows came across local currency, equities, blended and corporate debt strategies, as investors looked past uncertainty over the Middle East conflict toward relative value in emerging markets.
Redemptions fell sharply from the prior quarter, though a small number of institutional withdrawals left the external debt theme in net outflow.
Emerging markets fixed income indices rose 2% to 5% over the period, while the large-cap equity index gained 24%, with all main EM indices bar local currency now above their end-February levels given US dollar strength.
"Net inflows of $1.3 billion in the quarter reflect the underlying momentum in client activity as the attraction of emerging markets and Ashmore's ability to deliver outperformance are increasingly recognised," said chief executive Mark Coombs.
Coombs added that the forward-looking macroeconomic environment is expected to be supportive for emerging markets, citing reduced recession risk and capital spending on AI, energy security and defence.
Ashmore will report its full-year results for the year ending 30 June on 7 September.
