Ashmore Sees Emerging Markets Boost if Trump Changes Plans
By Yamini Kalia
(Reuters) -If U.S. President-elect Donald Trump has overstated his policy plans there could be upside for asset prices in emerging markets once he takes office, UK wealth manager Ashmore said on Wednesday.
Trump's inauguration takes place on Jan. 20.
"If, as was the case following the 2016 US election, the campaign rhetoric exaggerates the policies ultimately implemented then the conditions exist for meaningful upside to current emerging markets asset prices," said CEO Mark Coombs.
Ashmore shares rose nearly 5% to 154.2 pence on the FTSE 250.
Trump's promises to hike tariffs have fuelled concern across a swathe of economies while expectations that the Federal Reserve will make fewer interest rate cuts have weighed on markets.
Nations across the world are preparing for a storm of executive orders, from immigration to energy, once Trump is in the White House.
Ashmore reported total assets under management fell 6% to $48.8 billion in the second quarter ended Dec. 31, in line with a company-compiled consensus, according to J.P. Morgan.
Net outflows were $0.4 billion for the period, better than expectations of $1.1 billion.
"The market has a tendency to extrapolate past flow trends into all future periods ... It appears that clients have been more sanguine than analysts," said Panmore Liberum analyst Rae Maile.
Ashmore's investment performance fell to a negative $2.6 billion over the second quarter.
(Reporting by Yamini Kalia in Bengaluru; Editing by Janane Venkatraman and Kate Mayberry)
