REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

14/04/2022 07:16

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RNS Number : 3365I  Ashmore Group PLC  14 April 2022

 

Ashmore Group plc

14 April 2022

THIRD 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 March 2022.

Assets under management

 Theme             Actual             Estimated       Movement

31 December 2021
31 March 2022

                (%)
                   (US$ billion)      (US$ billion)
 - External debt   18.9               16.8            -11.1%
 - Local currency  28.6               26.7            -6.6%
 - Corporate debt  9.5                8.0             -15.8%
 - Blended debt    20.8               17.7            -14.9%
 Fixed income      77.8               69.2            -11.1%
 Equities          8.0                7.4             -7.5%
 Alternatives      1.5                1.7             +13.3%
 Total             87.3               78.3            -10.3%

 

Assets under management declined by US$9.0 billion over the period, including
net outflows of US$3.7 billion and negative investment performance of US$5.0
billion(1).

Against a backdrop of lower market levels, particularly following Russia's
invasion of Ukraine, and some institutional rebalancing, the Group experienced
net outflows in its fixed income and equity investment themes. Net outflows
were highest in blended debt followed by local currency (reflecting US$0.9
billion of overlay/liquidity outflows), equities, external debt and corporate
debt. Institutional mandates accounted for the majority of the net redemptions
in the period.

In absolute terms, investment performance was positive in equities and
alternatives, and negative in the fixed income themes, with the main indices
falling by 7% to 10% over the three months. Ashmore delivered outperformance
in local currency, external debt and investment grade strategies across fixed
income, and underperformed in corporate debt, blended debt and equities. The
longer term performance picture has not changed materially with continued
outperformance in local currency, equities, and investment grade strategies
across the fixed income asset classes, and some underperformance in high-yield
biased funds in external debt, corporate debt and blended debt.

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

"The war in Ukraine is a humanitarian tragedy that will have far-reaching
consequences for the existing world order. The shock is likely to weigh on
investor sentiment in the short term, but the consequences of the conflict
will not be felt equally across the diversified set of more than 70 Emerging
Market countries, as has already been seen with the impact of higher commodity
prices. Ashmore's active management and deep-rooted experience of investing in
Emerging Markets mean it is well positioned to understand and to act upon the
current market volatility.

"The principal economic impact of the war has been to push inflation higher
and this is being felt across the world. Importantly, against the inflationary
backdrop, central banks in Emerging Markets have been raising interest rates
for the past year, and China is in a position to ease policy, whereas
developed world banks have only just started to react with modestly higher
rates. As trade and political relationships are reorganised in the coming
years, portfolio diversification will be increasingly important and this will
benefit emerging countries, in which investors are typically underweight."

 

Notes

1. The Group's ownership of Taiping Fund Management Company was reduced in the
period, from 8.5% to 5.2%, which resulted in US$0.3 billion lower AuM in the
local currency theme as at 31 March.

Local currency AuM includes US$9.7 billion of AuM managed in overlay/liquidity
strategies (31 December 2021: US$11.0 billion).

 

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)7771 978 220

Kit Dunford                              +44
(0)7717 417 038

 

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