Ashmore gets bold as it snaps up low-priced ‘oversold’ assets

Billionaire fund chief Mark Coombs showed his mettle on Friday after his firm Ashmore doubled down on rocky emerging markets despite a $5 billion (£3.8 billion) funds slump.

The group, spun out of Aussie bank ANZ by Coombs in 1999, is snapping up “oversold” assets that rival investors are fearful of owning due to the possible impact of the strong US dollar and rising protectionism.

Ashmore funds, which invest in countries like Jamaica, Brazil and Ecuador, shed $5.2 billion in the quarter ending June because of poor performance.

Assets under management fell 3% to $73.9 billion, because of the market slump.

Coombs, who owns 38% of the company, said emerging market prices were at their lowest since the 2016 US election and the group could “capitalise”.

“While there is a small number of emerging countries that face challenges, most emerging-markets economies are in even better health today,” he said.

The market took heart from customers ploughing in cash, with inflows at $2.6 billion. The shares rose 2.7%.

“We see the prospects of Ashmore outperforming when sentiment improves,” said analysts at Peel Hunt.