REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

15/04/2024 07:00

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RNS Number : 5149K  Ashmore Group PLC  15 April 2024

Ashmore Group plc

15 April 2024

THIRD 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 March 2024.

Assets under management

 Theme               Actual             Estimated       Movement

30 December 2023
31 March 2024
pre reclassification(1)

                     (US$ billion)      (US$ billion)    (%)
 - External debt(1)  9.5                7.1             -
 - Local currency    18.8               17.4            -7%
 - Corporate debt    5.2                4.9             -6%
 - Blended debt(1)   12.4               14.2            -5%
 Fixed income        45.9               43.6            -5%
 Equities            6.5                6.8             +5%
 Alternatives        1.6                1.5             -6%
 Total               54.0               51.9            -4%

 

Assets under management decreased by US$2.1 billion over the period,
comprising negative investment performance of US$0.1 billion and net outflows
of US$2.0 billion.

Against a backdrop of more subdued markets following the strong end to 2023,
net outflows were predominantly driven by institutional clients continuing to
reduce risk. By investment theme, the net outflows were primarily in local
currency, blended debt and corporate debt, and there was a small net inflow in
the equities theme.

In the alternatives theme, successful asset realisations and a subsequent
return of capital resulted in a reported net outflow. As a result of the
realisations, the Group currently expects to deliver performance fees in H2 at
least equivalent to those realised in H1 (£8.0 million).

Hard currency markets performed relatively well over the three months, driven
by spread compression particularly in high yield markets, and equities also
delivered positive returns. In contrast, local currency bonds faced the
headwind of a stronger US dollar over the period. Ashmore's strategies
generally outperformed benchmark indices over the three months. Over the
longer term, and consistent with the position in December, Ashmore continues
to deliver outperformance across a broad range of strategies.

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

"Emerging Markets delivered a mixed performance over the quarter as stronger
than expected economic data pushed back expectations of rate cuts by the US
Fed. Looking beyond the short-term, macroeconomic stability in emerging
countries underpins superior GDP growth compared with the developed world, and
many central banks continue to cut rates in response to lower inflation. An
easing of US monetary policy will further boost hard currency bonds and, with
the US dollar at or close to its cyclical peak, a weaker dollar will underpin
returns from local currency bonds and equities. Ashmore remains
well-positioned to benefit from the capital flows that should follow these
positive market trends."

Notes

1. During the quarter, assets totalling US$2.4 billion were reclassified from
external debt to blended debt as a result of changes to investment guidelines.
The quarter-on-quarter % movements and the commentary on flows exclude the
effects of this reclassification. Including the reclassification, external
debt AuM decreased by 25% and blended debt AuM increased by 15% over the
period.

Local currency AuM includes US$6.9 billion of AuM managed in overlay/liquidity
strategies (31 December 2023: US$6.3 billion).

 

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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