REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

14/07/2022 07:00

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RNS Number : 4051S  Ashmore Group PLC  14 July 2022

 

Ashmore Group plc

14 July 2022

FOURTH 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 30 June 2022.

Assets under management

 Theme             Actual          Estimated       Movement

31 March 2022
30 June 2022

                (%)
                   (US$ billion)   (US$ billion)
 - External debt   16.8            14.4            -14.3%
 - Local currency  26.7            20.7            -22.5%
 - Corporate debt  8.0             6.8             -15.0%
 - Blended debt    17.7            14.4            -18.6%
 Fixed income      69.2            56.3            -18.6%
 Equities          7.4             6.2             -16.2%
 Alternatives      1.7             1.5             -11.8%
 Total             78.3            64.0            -18.3%

 

Assets under management declined by US$14.3 billion over the period,
comprising net outflows of US$6.6 billion and negative investment performance
of US$7.7 billion.

The net outflows were concentrated in the local currency and blended debt
themes, with substantially smaller net outflows in the external debt, equities
and corporate debt themes.  The local currency net redemptions were primarily
from low margin institutional accounts, including overlay outflows of US$2.5
billion reflecting lower market levels. The blended debt net outflows were
split between mutual funds and a number of smaller individual redemptions from
institutional mandates as risk appetite declined in a challenging period for
global markets.

With broad-based risk aversion across asset classes globally, the main
Emerging Markets indices fell by between 6% and 16% over the three months. As
is typical in such a market environment, Ashmore's investment processes
underperformed over the quarter. Over longer time periods, Ashmore continues
to deliver outperformance in local currency, equities and investment grade
strategies across fixed income.

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

 "The global macro environment deteriorated in the quarter due to continued
geopolitical tension, higher than expected inflation and more aggressive
monetary tightening in the US leading to fears of recession and broad-based
risk aversion. The decline in Ashmore's AuM over the quarter reflects this
challenging market backdrop as asset values fell and investors de-risked
portfolios.

"Significantly, the economic developments across a range of emerging countries
are in contrast to this global macro picture. Leading indicators across
Emerging Markets continue to point to a slowdown in growth rather than an
outright recession. After 18 months of monetary policy tightening, many
emerging countries are well ahead of the Fed and the ECB in tackling
inflation, and are therefore offering relatively high real yields and
attractive FX valuations. Sentiment will inevitably continue to be swayed by
global macro and geopolitical developments, but the exceptional valuations and
relatively healthy fundamentals currently evident in Emerging Markets provide
attractive opportunities for long-term investors."

 

Notes

Local currency AuM includes US$7.2 billion of AuM managed in overlay/liquidity
strategies (31 March 2022: US$9.7 billion).

For the translation of US dollar-denominated balance sheet items, the GBP:USD
exchange rate was 1.2145 at 30 June 2022 (30 June 2021: 1.3815; 31 December
2021: 1.3545). For the translation of US dollar management fees, the average
GBP:USD exchange rate for the financial year was 1.3289 (FY2020/21: 1.3472).

Ashmore will announce its results in respect of the year ended 30 June 2022 on
2 September 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)7771 978 220

Kit Dunford                              +44
(0)7717 417 038

 

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