REG - Ashmore Group Plc - Trading statement

AshmoreAnnouncement

12/07/2024 07:00

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RNS Number : 1284W  Ashmore Group PLC  12 July 2024

Ashmore Group plc

12 July 2024

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 2024.

Assets under management

 Theme             Actual          Estimated       Movement

31 March 2024
30 June 2024
 (%)

                   (US$ billion)   (US$ billion)
 - External debt   7.1             7.2             +1%
 - Local currency  17.4            17.7            +2%
 - Corporate debt  4.9             4.7             -4%
 - Blended debt    14.2            11.7            -18%
 Fixed income      43.6            41.3            -5%
 Equities          6.8             6.7             -1%
 Alternatives      1.5             1.5             -
 Total             51.9            49.5            -5%

 

Assets under management decreased by US$2.4 billion over the period,
comprising negative investment performance of US$0.4 billion and net outflows
of US$2.0 billion.

Emerging Markets returns have been positive over the past year and Ashmore has
delivered outperformance across a broad range of strategies, but in contrast
to this point in previous cycles, investor risk appetite remains subdued and
institutional decisions to reduce Emerging Markets exposure continue to drive
net outflows. This trend was notable in the blended debt theme this quarter,
which, combined with small net outflows from corporate debt and equities,
exceeded the net inflows into the local currency and external debt themes.

Market performance over the three months was broadly in line with the
preceding quarter, with external debt, corporate debt and equity indices
delivering positive returns, while local currency bond returns were held back
by a stronger US dollar. Ashmore's relative outperformance was also consistent
with that delivered in the previous three months.

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

"Emerging Markets have demonstrated resilience over the past few years, with
effective monetary and fiscal policies underpinning superior GDP growth.
Further growth is supported by structural economic reforms in many emerging
countries. In contrast, the developed world faces numerous headwinds following
a period of pro-cyclical fiscal expansion and a sharp increase in the cost of
government debt. As the trajectories of emerging and developed countries
continue to diverge, investor appetite for Emerging Markets exposure will
improve and capital flows will follow, supporting higher risk-adjusted returns
in Emerging Markets over the medium term."

 

Notes

Local currency AuM includes US$7.6 billion of AuM managed in overlay/liquidity
strategies (31 March 2024: US$6.9 billion).

For the translation of US dollar-denominated balance sheet items, the GBP:USD
exchange rate was 1.2641 at 30 June 2024 (30 June 2023: 1.2714). For the
translation of US dollar management fees, the average GBP:USD exchange rate
for the financial year was 1.2609 (FY2023: 1.2079).

Ashmore will announce its results in respect of the year ending 30 June 2024
on 5 September 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 (mailto:ashmore@fticonsulting.com)

 

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