Will Ashmore Group plc outperform Prudential plc, Aviva plc, Barclays PLC and HSBC Holdings plc after Q4 update?

Does Ashmore Group plc (LON:ASHM) (ASHM.L) have more investment potential than Prudential plc (LON:PRU) (PRU.L), Aviva plc (LON:AV) (AV.L), Barclays PLC (LON:BARC) (BARC.L) and HSBC Holdings plc (LON:HSBA) (HSBA.L)?

Ashmore
Ashmore

The Ashmore Group plc (LON:ASHM) (ASHM.L) share price has fallen 4% today after the release of its Q4 update. The specialist Emerging Markets asset manager’s assets under management increased by $2.8 billion during the period. This was made up of positive investment performance of $1.6 billion and net inflows of $1.2 billion.

There was momentum in gross sales across the company’s product range, with gross redemptions falling quarter-on-quarter. Subscriptions came from a variety of different client types, with new mandates and additional allocations from existing clients providing a mix of new business.

Net inflows were experienced in blended debt, equities, corporate debt and alternatives, while flows were flat in multi-asset, external debt and overlay/liquidity. Due to a large institutional account redemption, local currency delivered a net outflow.

Absolute returns from Emerging Markets were once again positive, and were superior returns when compared to developed world fixed income as well as equity markets. Ashmore believes there is still significant absolute and relative value still available in Emerging Markets and appears to be optimistic about its future.

In the last 6 months, the Ashmore share price is up 18%. That’s a better performance than other financial services stocks such as Prudential plc (LON:PRU) (PRU.L), Aviva plc (LON:AV) (AV.L), Barclays PLC (LON:BARC) (BARC.L) and HSBC Holdings plc (LON:HSBA) (HSBA.L). The Aviva share price is up 8%, Prudential has gained 10%, HSBC is up 9% and Barclays has fallen 10% during the same time period.

I’m bullish about the prospects for Emerging Markets, so I feel positive about the outlook for Ashmore. I think there is good value on offer throughout the financial services industry, and so I’d probably rather own Barclays, HSBC, Prudential or Aviva, but nevertheless I believe Ashmore has the potential to deliver further strong share price gains on a relative basis in the long run.




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