Emerging markets specialist Ashmore Group said Friday assets under management grew modestly owing to increased net inflows, though volatile markets and a stronger dollar hurt returns.

For the three months ended September 30, assets under management rose 3% to $76.4bn.

Assets under management growth was supported by net inflows of $1.9bn, positive investment performance of US$0.3bn and acquired AuM of US$0.3bn following the acquisition of a 56% stake in Avenida, a Colombian real estate manager.

Net inflows were weighed down, however, by outflows from equities following volatility in emerging markets and a stronger US dollar.

Yet the fund manager touted further opportunities to buy attractively-valued assets as near-term events such as elections in the US and several Emerging Markets countries would generating a mispricing of assets.

'Net inflows continued through the quarter as clients responded positively to the opportunities created by price volatility across a broad range of Emerging Markets asset classes. Ashmore's active investment processes have been selectively adding risk and relative performance remains strong,' said Mark Coombs, Chief Executive Officer, Ashmore Group.

'Given the likelihood for mispricing around near term events such as elections in the US and several Emerging Markets countries, we anticipate there will be more opportunities to buy attractively-valued assets and to embed long-term value into portfolios.'