REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

17/01/2022 07:05

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RNS Number : 5467Y  Ashmore Group PLC  17 January 2022

 

Ashmore Group plc

17 January 2022

SECOND QUARTER ASSETS UNDER MANAGEMENT STATEMENT

Ashmore Group plc ("Ashmore", "the Group"), the specialist Emerging Markets
asset manager, announces the following update to its assets under management
("AuM") in respect of the quarter ended 31 December 2021.

Assets under management

 Theme                Actual              Estimated          Movement

30 September 2021
31 December 2021

                   pre-reclassification(1)
                      (US$ billion)       (US$ billion)

                                                             (%)
 - External debt      18.8                18.9               +0.5%
 - Local currency(1)  30.5                28.6               -4.6%
 - Corporate debt     10.3                9.5                -7.8%
 - Blended debt(1)    22.4                20.8               -9.4%
 Fixed income         82.0                77.8               -5.1%
 Equities             7.8                 8.0                +2.6%
 Alternatives         1.5                 1.5                -
 Total                91.3                87.3               -4.4%

 

Assets under management declined by US$4.0 billion over the period, comprising
net outflows of US$2.2 billion and negative investment performance of US$1.8
billion.

The external debt, equities and alternatives themes had net inflows, including
the first close of a private equity fund raised by Ashmore Colombia. There
were net outflows in the blended debt, local currency (including a US$1.3
billion reduction in overlay mandates) and corporate debt themes.

Against the backdrop of generally declining Emerging Markets over the quarter,
Ashmore's relative performance was positive in local currency, equity and
investment grade strategies, and weaker in some US dollar-denominated
strategies. Relative performance over the longer term shows strong
outperformance in local currency, equities and investment grade funds and some
underperformance in certain external debt, corporate debt and blended debt
strategies.

Mark Coombs, Chief Executive Officer, Ashmore Group plc, commented:

"Persistent global inflation expectations, new COVID-19 variants and weaker
growth in China meant challenging market conditions for Emerging Markets
continued through the final months of 2021. However, the global macro economic
environment is expected to be more supportive for Emerging Markets in 2022.
Targeted fiscal and monetary stimulus will support China's growth, Fed policy
tightening is already reflected in valuations, and commodity prices are
providing a tailwind to the terms of trade, and therefore the external
accounts, of exporters.

"Very little of this positive outlook is currently priced in to fixed income
and equity valuations in Emerging Markets, with yields and spreads at elevated
levels relative both to history and to developed world capital markets, and
equities trading at a 15-year relative low. This therefore provides a strong
backdrop against which Emerging Markets can outperform and attract capital as
investors address their underweight allocations."

 

Notes

1. During the quarter, assets totalling US$0.5 billion were reclassified from
local currency to blended debt as a result of changes to benchmarks and/or
investment guidelines. The quarter-on-quarter % movements and the commentary
on flows exclude the effects of the reclassification. Including the
reclassification, local currency AuM decreased by 6% and blended debt AuM
decreased by 7% over the period.

Local currency AuM includes US$11.0 billion of AuM managed in
overlay/liquidity strategies (30 September 2021: US$12.1 billion).

For the translation of US dollar-denominated balance sheet items, the GBP:USD
exchange rate was 1.3545 at 31 December 2021 (30 June 2021: 1.3815; 31
December 2020: 1.3670). For the translation of US dollar management fees, the
average GBP:USD exchange rate achieved for the first half of the financial
year was 1.3636 (H1 2020/21: 1.3107).

Ashmore will announce its interim results in respect of the six months ending
31 December 2021 on 10 February 2022.

Ashmore's Legal Entity Identifier (LEI) is 549300U3L59WB4YI2X12.

 

For further information please contact:

Ashmore Group plc

Paul Measday

Investor Relations                   +44 (0)20 3077 6278

FTI Consulting

Neil Doyle                                +44 (0)20 3727 1141

Kit Dunford                              +44 (0)20 3727 1143

 

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