This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Shares in Ashmore rose almost 9% in early morning trading, topping the , on news that Assets Under Management (AuM) increased by a whopping $7B in Q3. This represents the biggest quarterly surge since the quarter ended 30 Sept 2015 (+$7.8B), thanks to ravenous demand for exposure to emerging markets (EM).
Seeking perhaps to flee developed market volatility that kicked off at the end of January, client risk appetite strengthened on the backdrop of general interest in emerging markets which has pushed the MSCI Emerging Market Index up by more than 20% YoY, easily outperforming major developed equity indices (-4% to +6%), themselves seen as overvalued. Management points to a host of drivers for EM interest, including “attractive valuations … underweight allocations, improved earnings and credit fundamentals, and relative currency strength …”.
Emerging markets may well be similarly off their Jan highs, however this clearly hasn’t put any brakes on exposure, or indeed Ashmore financial performance. Investors are rewarding Ashmore shares, the stock price re-testing Feb 8th highs when it reported H1 results. The question now is whether the robust performance reported today can continue, and if the share price can put on another 5% to break higher and re-visit mid-Jan all-time highs.
Artjom Hatsaturjants, Research Analyst, 17 Apr 2018
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
Comments are closed.