REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

15/01/2024 07:00

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RNS Number : 6032Z  Ashmore Group PLC  15 January 2024

Ashmore Group plc

15 January 2024

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 2023.

Assets under management

 Theme                Actual              Estimated          Movement

30 September 2023
31 December 2023
pre reclassification(1)

                      (US$ billion)       (US$ billion)       (%)
 - External debt      8.9                 9.5                +7%
 - Local currency     18.4                18.8               +2%
 - Corporate debt(1)  5.5                 5.2                +2%
 - Blended debt(1)    11.3                12.4               +6%
 Fixed income         44.1                45.9               +4%
 Equities             6.0                 6.5                +8%
 Alternatives         1.6                 1.6                -
 Total                51.7                54.0               +4%

 

Assets under management increased by US$2.3 billion over the period,
comprising positive investment performance of US$3.9 billion and net outflows
of US$1.6 billion.

The Group's net outflows reduced from prior quarters as, while there continues
to be some risk aversion among certain investors, clients responded to the
improving global macro environment. Equities delivered a net inflow and,
within the fixed income themes, the outflows were broadly spread with no
significant patterns.

The Fed's signalling of the end of its rate hiking cycle and continued
economic stability in many emerging countries delivered strong performance
across Emerging Markets over the three months. Fixed income indices rose by 6%
to 9% and equities increased by 8%, and the majority of Ashmore's strategies
outperformed over the quarter. Ashmore's longer-term relative performance
(over one, three and five years) remains consistent.

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

"Emerging Markets delivered good returns and outperformed most developed world
indices in 2023 due to superior economic growth, effective monetary policies
and the benefits of a weaker US dollar as the Fed reaches the end of its
tightening cycle. These factors, along with attractive absolute and relative
valuations, will support Emerging Markets asset prices in 2024, leading to
outperformance and higher allocations from investors who currently have
significantly underweight allocations to Emerging Markets. Ashmore continues
to deliver outperformance for clients across a broad range of strategies, and
activity levels have begun to reflect the improving outlook for the global
macro environment."

 

 

Notes

 

1. During the quarter, assets totalling US$0.4 billion were reclassified from
corporate debt to blended debt as a result of changes to benchmarks. The
quarter-on-quarter % movements and the commentary on flows exclude the effects
of this reclassification. Including the reclassification, corporate debt AuM
decreased by 5% and blended debt AuM increased by 10% over the period.

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

For the translation of US dollar-denominated balance sheet items, the GBP:USD
exchange rate was 1.2748 at 31 December 2023 (30 June 2023: 1.2714; 31
December 2022: 1.2029). For the translation of US dollar management fees, the
average GBP:USD exchange rate achieved for the first half of the financial
year was 1.2572 (H1 2022: 1.1795).

Ashmore will announce its interim results in respect of the six months ending
31 December 2023 on 7 February 2024.

 

For further information please contact:

Ashmore Group plc

Paul Measday

Investor Relations                   +44 (0)20 3077 6278

 
ir@ashmoregroup.com

FTI Consulting

Neil Doyle                               +44
(0)7771 978 220

Kit Dunford                              +44
(0)7717 417 038

 
ashmore@fticonsulting.com

 

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