Investment Approach

Due to the historical i.e. largely non-cyclical nature of the spread of market economy across the developing world since the end of the Cold War, the importance of political dynamics, economic and market structural changes, and evolution of highly heterogeneous investor bases, emerging markets display strong information asymmetries.  We observe that barriers to entry for new asset managers are substantial in these markets.      

In this complex and dynamic environment we believe that key to alpha generation is a focus on investor and policy-maker behaviour, which in turn requires an understanding of the changing structure, views and incentives of local and international investors and politicians.  For this, one needs an extensive network of contacts, long experience, and a team based approach.  Quantitative approaches are of more limited value.  

We also believe that there are many potential asset classes in emerging countries - many different risk return profiles which we shall be able to offer our clients and Ashmore fund investors in the future.  As capital markets grow rapidly in emerging markets we wish to be a part of that growth, both enabling access to these markets by developed world pools of capital, but also and increasingly by emerging market pools of capital.