Emerging markets specialist Ashmore saw assets under management increase by $1.9bn in the first three months of the year.

Reporting its quarterly numbers, the firm revealed a positive investment performance of $3bn and the lowest quarterly net outflow number, $1.1bn, since the first quarter of 2015.

“The quarter saw strong returns from Emerging Markets assets as value was recognised and prices recovered from over-sold levels earlier in the period,” said Mark Coombs, chief executive.

"Markets rallied towards the end of the quarter as some of the headwinds that have affected sentiment and held back returns, such as the falling oil price and strong US dollar, started to recede."

Ashmore said investment performance was particularly strong in local currency, as emerging markets currencies strengthened against the US dollar, blended debt and external debt.

Weaker emerging markets in recent years have hurt the likes of Ashmore and Aberdeen Asset Management.

Falling commodity prices since 2011, a turn in the credit cycle post the ‘Taper Tantrum’ and a slowdown in global industrial production growth since early 2014 have been strong factors.

Against this backdrop, investors have progressively cut back their allocation to emerging market equities, reflecting the bleak prospects that lay ahead.

“It’s too early to be definitive but it feels like the tide may have turned,” said broker Liberum responding to Ashmore’s figures today.

“We shall be reviewing our target price and recommendation. The stock is +46% in the last 3 months.”