REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

14/10/2022 07:00

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RNS Number : 8631C  Ashmore Group PLC  14 October 2022

 

Ashmore Group plc

14 October 2022

FIRST 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 September 2022.

Assets under management

 Theme             Actual          Estimated           Movement

30 June 2022
30 September 2022

                    (%)
                   (US$ billion)   (US$ billion)
 - External debt   14.4            11.9                -17.4%
 - Local currency  20.6            18.3                -11.2%
 - Corporate debt  6.8             6.1                 -10.3%
 - Blended debt    14.4            12.3                -14.6%
 Fixed income      56.2            48.6                -13.5%
 Equities          6.3             5.9                 -6.3%
 Alternatives      1.5             1.5                 -
 Total             64.0            56.0                -12.5%

 

Assets under management declined by US$8.0 billion over the period, comprising
net outflows of US$5.0 billion and negative investment performance of US$3.0
billion.

The net outflows were predominantly a result of institutional investors
reducing exposure in the external debt, local currency and blended debt
themes, and local currency flows also include net redemptions of US$0.8
billion from overlay funds. The corporate debt and equity themes experienced
small net outflows.

Continued high levels of inflation and consequently more hawkish central banks
around the world meant that the main Emerging Markets fixed income indices
declined by between 3% and 6% over the quarter, while equity indices fell by
between 2% and 12%. Relative performance over the period, and the longer term,
is consistent with the recent pattern of outperformance in local currency,
equities and investment grade products, and some underperformance in fixed
income strategies with a high yield bias.

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

 "Global fixed income and equity markets fell over the quarter reflecting
continued uncertainty around geopolitical risks, higher inflation and
increasingly hawkish central banks. This has increased the risk of recession
in many countries and pushed bond yields higher and equity valuations lower in
both Developed and Emerging Markets. Investor risk appetite therefore remains
limited in the near term and Ashmore's AuM movement this quarter reflects the
impact of lower market levels and investors continuing to reduce risk.

"Valuations across equity and fixed income Emerging Markets are exceptionally
attractive and yet investors have lighter positions following a period of
lower risk appetite. This provides a firm foundation for performance and
higher allocations to capture the longer term growth and investment
opportunities available in Emerging Markets as macro economic conditions begin
to improve. Ashmore's active management means it can take advantage of
attractive market levels to embed value in portfolios and consequently it is
well positioned to deliver outperformance in the years ahead across its range
of equity and fixed income strategies."

 

Notes

Local currency AuM includes US$6.3 billion of AuM managed in overlay/liquidity
strategies (30 June 2022: US$7.2 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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