REG - Ashmore Group Plc - Trading Statement

AshmoreAnnouncement

14/04/2025 07:00

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RNS Number : 7860E  Ashmore Group PLC  14 April 2025

Ashmore Group plc

14 April 2025

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 2025.

Assets under management

 Theme             Actual             Estimated       Movement

31 December 2024
31 March 2025
(%)

                   (US$ billion)      (US$ billion)
 - External debt   7.1                7.2             +1%
 - Local currency  17.3               14.0            -19%
 - Corporate debt  4.6                4.9             +7%
 - Blended debt    11.3               11.7            +4%
 Fixed income      40.3               37.8            -6%
 Equities          7.0                6.8             -3%
 Alternatives      1.5                1.6             +7%
 Total             48.8               46.2            -5%

 

Assets under management declined by US$2.6 billion over the period, comprising
positive investment performance of US$1.3 billion and net outflows of US$3.9
billion.

Subscriptions activity in the period comprised new mandate wins, notably from
Asian institutions attracted by the return opportunities in investment grade
credit, and additions to existing external debt mandates. However, these
inflows were outweighed by a small number of large institutional redemptions
towards the end of the period in the local currency theme, reflecting client
specific asset allocation decisions.

By investment theme, there was a small net inflow in alternatives reflecting
additional capital raised into infrastructure debt, external debt and
corporate debt flows were broadly neutral, and there were small net outflows
in equities and blended debt.

Emerging Markets performed well over the three months to 31 March with the
main indices returning between +2% and +4%. The performance was underpinned by
economic resilience in emerging economies, positive developments in China's
technology sector, and currency movements including a weak US dollar and a
stronger euro. Against this backdrop, Ashmore's active investment processes
delivered outperformance in the Group's main equity and fixed income
strategies. Relative performance remains broadly consistent over one and three
years, and five-year performance has improved following recent outperformance.

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

"Emerging Markets performed well over the quarter on the back of economic
resilience together with the benefit of a weaker US dollar and strength in the
Euro as a consequence of planned fiscal expansion in Europe. Ashmore's active
investment processes continued to deliver outperformance across a broad range
of strategies.

"However, individual institutional asset allocation decisions resulted in a
net outflow for the quarter. These decisions do not appear indicative of a
broader pattern of client activity and encouragingly, levels of investor
interest in Ashmore's Emerging Markets fixed income and equity strategies
continue to be strong.

"Since the quarter end, market volatility has heightened due to increased
tariffs and changes to terms of global trade. While this creates uncertainty
and a risk-off response from certain investors, it is notable that the
diversity and resilience of Emerging Markets is reflected in performance of
the main indices. Against a 1% decline in the US Treasury index and a 2%
decline in US HY bonds, Emerging Markets fixed income is down by less than 2%,
and Emerging Markets equities performance is in line with the US. This
resilience demonstrates that there are increasingly powerful reasons for
investors to rebalance their asset allocations away from the US capital
markets, such as tighter fiscal policy and a smaller government in the US, the
start of fiscal stimulus in Europe, higher rates in Japan and China's focus on
boosting domestic demand. When combined with the impact of aggressive trade
tariffs, these factors point to a weaker US dollar, which will be supportive
for the performance of Emerging Markets."

 

Notes

Local currency AuM includes US$7.9 billion of AuM managed in overlay/liquidity
strategies (31 December 2024: US$7.8 billion).

During the quarter, assets totalling US$0.1 billion were reclassified from
external debt to blended debt because of changes to investment guidelines and
benchmarks.

 

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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