REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

14/07/2023 07:00

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RNS Number : 9887F  Ashmore Group PLC  14 July 2023

Ashmore Group plc

14 July 2023

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 2023.

Assets under management

 Theme             Actual          Estimated       Movement

31 March 2023
30 June 2023

                (%)
                   (US$ billion)   (US$ billion)
 - External debt   12.6            11.0            -13%
 - Local currency  18.9            18.8            -1%
 - Corporate debt  6.6             6.5             -2%
 - Blended debt    12.3            11.9            -3%
 Fixed income      50.4            48.2            -4%
 Equities          5.9             6.2             +5%
 Alternatives      1.4             1.5             +7%
 Total             57.7            55.9            -3%

 

Assets under management decreased by US$1.8 billion over the period,
comprising positive investment performance of US$1.1 billion and net outflows
of US$2.9 billion.

The net outflows were primarily the result of top-down asset allocation
decisions by institutional clients in the external debt theme and, to a lesser
extent, in the blended debt and local currency themes. There was a small net
outflow in corporate debt, and net flows were flat in the equities and
alternatives themes.

Emerging Markets performed well over the quarter with returns of between +1%
and +2.5% in the main benchmark indices. Local currency markets performed
particularly well, supported by continued weakness in the US dollar and
rapidly falling inflation in larger emerging economies. Over the three months,
Ashmore delivered outperformance in local currency, equities and investment
grade strategies, and underperformed in other external debt, corporate debt
and blended debt strategies. Given the recovery in Emerging Markets asset
prices and the consequent strength of Ashmore's investment performance over
the past three quarters, as at 30 June, approximately two-thirds of the
Group's AuM is outperforming over one and three years.

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

"There remains some global macro uncertainty and certain investors have
therefore reduced risk during the quarter. However, Emerging Markets continue
to perform well, with support from improving fundamentals such as accelerating
GDP growth, falling inflation and the potential for rate cuts, as well as the
benefit of a weaker US dollar. Against this developing backdrop, and as
expected at this point in the cycle, Ashmore's active investment management
approach is delivering outperformance across a range of equity and fixed
income strategies."

 

Notes

Local currency AuM includes US$6.3 billion of AuM managed in overlay/liquidity
strategies (31 March 2023: US$6.3 billion).

For the translation of US dollar-denominated balance sheet items, the GBP:USD
exchange rate was 1.2714 at 30 June 2023 (30 June 2022: 1.2145; 31 December
2022: 1.2029). For the translation of US dollar management fees, the average
GBP:USD exchange rate for the financial year was 1.2079 (FY2021/22: 1.3289).

Ashmore will announce its results in respect of the year ending 30 June 2023
on 6 September 2023.

 

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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