One of the reasons why Aberdeen Asset Management decided to merge with the more staid Standard Life was because Aberdeen’s exposure to emerging markets meant performance varied wildly as appetite for such assets increased and waned.
Ashmore Group is entirely exposed to such markets and almost entirely in areas such as local currencies and debt rather than in equities. This provides a degree of stability. There was a general improvement in Ashmore’s financial year to the end of June. It could hardly be otherwise; emerging markets probably hit their nadir at the turn of 2016, as did Ashmore’s share price.
The election of President Trump, though, saw another blip. The perception of higher interest rates boosted the dollar, which meant emerging markets currencies fell.
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