REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

16/01/2023 07:00

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RNS Number : 7390M  Ashmore Group PLC  16 January 2023

 

Ashmore Group plc

16 January 2023

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 2022.

Assets under management

 Theme             Actual              Estimated          Movement

30 September 2022
31 December 2022

                   (%)
                   (US$ billion)       (US$ billion)
 - External debt   11.9                12.4               +4%
 - Local currency  18.3                18.3               -
 - Corporate debt  6.1                 6.6                +8%
 - Blended debt    12.3                12.6               +2%
 Fixed income      48.6                49.9               +3%
 Equities          5.9                 6.0                +2%
 Alternatives      1.5                 1.3                -13%
 Total             56.0                57.2               +2%

 

Assets under management increased by US$1.2 billion over the period,
comprising positive investment performance of US$3.8 billion and net outflows
of US$2.6 billion.

The positive market environment this quarter, offset by some institutional
investors taking asset-allocation decisions, meant that net outflows were
approximately half the level of the previous quarter. Net outflows were
experienced in local currency, including a reduction of US$0.4 billion in
overlay, blended debt, external debt and there was a small net outflow in the
corporate debt theme. Equities flows were neutral over the three months and
there was a return of capital from funds in the alternatives theme following
successful realisations.

Reflecting a modest easing of global macro concerns, the Emerging Markets
delivered strong returns over the quarter with the main fixed income and
equity benchmark indices rising by between 5% and 10%. Ashmore's active
investment processes delivered outperformance in the period across a broad
range of fixed income and equity strategies, reflecting the typical profile of
alpha creation as markets begin to recover from oversold levels.

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

"Emerging Markets' strong performance over the past three months reflects a
positive shift in investor sentiment against a backdrop of light positioning
and highly attractive valuations. Some of the headwinds of 2022, such as the
Fed's aggressive policy tightening, are receding, China re-opening its economy
will stimulate activity more broadly, and a number of emerging countries are
starting to see deflation as a consequence of effective monetary policy action
over the past two years. Therefore, we expect investor risk appetite to
increase over the course of the next 12 months, underpinning further market
performance and ultimately leading to capital flows into the Emerging Markets.

"Ashmore is well-positioned for this environment, with active management
delivering outperformance across equity and fixed income strategies and
current market valuations supporting further performance in the years ahead."

 

Notes

Local currency AuM includes US$5.9 billion of AuM managed in overlay/liquidity
strategies (30 September 2022: US$6.3 billion).

For the translation of US dollar-denominated balance sheet items, the GBP:USD
exchange rate was 1.2029 at 31 December 2022 (30 June 2022: 1.2145; 31
December 2021: 1.3545). For the translation of US dollar management fees, the
average GBP:USD exchange rate achieved for the first half of the financial
year was 1.1795 (H1 2021/22: 1.3636).

Ashmore will announce its interim results in respect of the six months ending
31 December 2022 on 8 February 2023.

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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