Broker snap: Ashmore surprises to the upside

14th Oct 2010 10:36

Higher than expected investment inflows have forced brokers to review their target prices for fund manager Ashmore.The emerging markets asset manager revealed an 18% increase in assets under management (AUM) to $41.6bn since June, driven by good investment performance and strong net inflows.Singer Capital Markets' forecast of $39bn was overtaken, with inflows already amounting to over 60% of its full year estimate just in the first quarter.Ashmore's net inflows of $3.4bn were more than three times the broker's estimates of $1bn, with the Asian retail investor-focused products contributing largely. Singer said "redemptions have decreased substantially (from the peak of 40% in 2009 to around 14% at present we estimate) which is, in part assisting net sales growth."The broker's target price of 360p and 'buy' is currently 'under review'.Ashmore's AUM figure also surpassed KBC Peel Hunt's expectations, with the broker's year-end forecast at $43.1bn.Analyst Stuart Duncan said the group "has, justifiably in our view, performed well over the last three months. The shares have now risen by 12% over the last month (+35% over 3 months)".KBC also has a target price of 360p, and its rating is 'under review' too.