REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

13/10/2023 07:00

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RNS Number : 9900P  Ashmore Group PLC  13 October 2023

Ashmore Group plc

13 October 2023

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 2023.

Assets under management

 Theme             Actual          Estimated           Movement

30 June 2023
30 September 2023

                    (%)
                   (US$ billion)   (US$ billion)
 - External debt   11.0            8.9                 -19%
 - Local currency  18.8            18.4                -2%
 - Corporate debt  6.5             5.5                 -15%
 - Blended debt    11.9            11.3                -5%
 Fixed income      48.2            44.1                -9%
 Equities          6.2             6.0                 -3%
 Alternatives      1.5             1.6                 +7%
 Total             55.9            51.7                -8%

 

Assets under management decreased by US$4.2 billion over the period,
comprising negative investment performance of US$1.3 billion and net outflows
of US$2.9 billion.

Net outflows were at a similar level to the prior quarter, primarily
reflecting continuing institutional risk aversion. The outflows were mainly in
the external debt and corporate debt themes, with smaller net outflows in
blended debt and equities. There were net inflows in the local currency and
alternatives themes.

The combination of weaker China economic data and an expectation that
developed world interest rates will remain high for longer meant that global
capital markets fell over the quarter and the US dollar rallied. While
Emerging Markets indices typically declined by 2% to 3% over the three months,
this was broadly in line with or marginally better than Developed Markets. As
expected in this environment, Ashmore's main fixed income and equity
strategies modestly underperformed over the three months.

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

"Emerging Markets were largely rangebound this quarter and overall delivered
slightly negative returns. After three quarters of positive returns, such a
period of consolidation within a longer recovery cycle is normal, and there
continue to be positive fundamental trends in Emerging Markets. For example,
central banks in many countries are cutting policy rates in response to
falling inflation, which supports the outlook for local bond and equity
markets and provides an opportunity to take advantage of lower asset prices.
Significantly, India will be included in the main local currency bonds
benchmark from mid-2024, illustrating the positive ongoing reforms in emerging
countries and providing greater investment diversification. Ashmore continues
to deliver longer-term outperformance for clients across a broad range of
strategies and is well-positioned to benefit from further recovery in Emerging
Markets."

 

Notes

Local currency AuM includes US$6.6 billion of AuM managed in overlay/liquidity
strategies (30 June 2023: US$6.3 billion).

 

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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