REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

15/01/2025 07:00

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RNS Number : 3289T  Ashmore Group PLC  15 January 2025

Ashmore Group plc

15 January 2025

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 2024.

Assets under management

 Theme             Actual              Estimated          Movement

30 September 2024
31 December 2024
(%)

                   (US$ billion)       (US$ billion)
 - External debt   7.8                 7.1                -9%
 - Local currency  18.3                17.3               -5%
 - Corporate debt  5.0                 4.6                -8%
 - Blended debt    12.2                11.3               -7%
 Fixed income      43.3                40.3               -7%
 Equities          7.3                 7.0                -4%
 Alternatives      1.2                 1.5                +25%
 Total             51.8                48.8               -6%

 

Assets under management declined by US$3.0 billion over the period, comprising
total net outflows of US$0.4 billion and negative investment performance of
US$2.6 billion. During the quarter Ashmore closed a liquidity fund, which
included US$0.2 billion of the Group's cash deposits. Therefore, excluding
Group cash, client net outflows for the period were US$0.2 billion.

The ongoing improvement in net flows compared with recent quarters was the
result of continuing subscriptions and reduced redemptions, as investors
increasingly acknowledge the opportunities available in emerging markets and
notwithstanding the heightened market volatility in the quarter.

By investment theme, there were net inflows into equities and alternatives,
the latter reflecting the first close of an infrastructure debt fund. There
were net outflows from external debt, blended debt and local currency, with
flows in the corporate debt theme being neutral.

The broad equity and fixed income market weakness experienced ahead of the US
election, and the impact of a stronger US dollar on the local currency and
equities themes means that most of the previous quarter's investment
performance was reversed in this period, with the main emerging markets
benchmark indices declining by between 1% and 8%. Ashmore's relative
performance over the medium and longer term remains broadly consistent with
the previous quarter.

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

"While market conditions were more volatile this quarter, particularly leading
up to the US election, the Group's flows continue to improve as clients
increasingly recognise emerging markets' resilience and the delivery of
outperformance by Ashmore's established, active investment processes.

"Global capital markets are likely to remain sensitive to the new US
administration's policy announcements. If, as was the case following the 2016
US election, the campaign rhetoric exaggerates the policies ultimately
implemented then the conditions exist for meaningful upside to current
emerging markets asset prices to be delivered and for investors to address
their significantly underweight emerging markets allocations. Therefore,
active management will be critical to maximise the returns available across
the diverse range of investment opportunities in multiple asset classes
covering more than 70 emerging markets countries."

 

 

Notes

 

Local currency AuM includes US$7.8 billion of AuM managed in overlay/liquidity
strategies (30 September 2024: US$7.7 billion).

For the translation of US dollar-denominated balance sheet items, the GBP:USD
exchange rate was 1.2524 as of 31 December 2024 (30 June 2024: 1.2641; 31
December 2023: 1.2748). For the translation of US dollar management fees, the
average GBP:USD exchange rate achieved for the first half of the financial
year was 1.2876 (H1 2024: 1.2572).

Ashmore will announce its interim results in respect of the six months ending
31 December 2024 on 7 February 2025.

 

For further information please contact:

Ashmore Group plc

Paul Measday

Investor Relations                   +44 (0)20 3077 6278

 
ir@ashmoregroup.com

Cardew Group

Tom Allison                             +44
(0)7789 998020

Will Baldwin-Charles               +44 (0)7834 524833

 
ashmore@cardewgroup.com

 

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