Ashmore Group PLC Trading Statement (8747S)
14 July 2020 - 4:00PM
UK Regulatory
TIDMASHM
RNS Number : 8747S
Ashmore Group PLC
14 July 2020
Ashmore Group plc
14 July 2020
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 2020.
Assets under management
Actual Estimated
31 March 2020 30 June 2020 Movement
Theme (US$ billion) (US$ billion) (%)
External debt 15.9 17.1 +8%
---------------- --------------- ---------
Local currency 17.7 18.7 +6%
---------------- --------------- ---------
Corporate debt 8.7 10.6 +22%
---------------- --------------- ---------
Blended debt 21.5 23.3 +8%
---------------- --------------- ---------
Equities 3.4 4.6 +35%
---------------- --------------- ---------
Alternatives 1.4 1.4 -
---------------- --------------- ---------
Multi-asset 0.3 0.3 -
---------------- --------------- ---------
Overlay / liquidity 7.9 7.6 -4%
---------------- --------------- ---------
Total 76.8 83.6 +9%
---------------- --------------- ---------
Assets under management increased by US$6.8 billion over the
quarter, reflecting positive investment performance of US$9.0
billion and net outflows of US$2.2 billion.
Investment performance was positive in all the fixed income
themes, equities and multi-asset, and flat in the other themes.
Markets have begun to recover from the levels seen in March, as
fiscal and monetary stimulus combined with the easing of Covid-19
restrictions in some economies has led to an improvement in
investors' risk appetite. Relative performance in the equities
theme is good over all time periods and while relative performance
over one and three years remains below benchmarks in the fixed
income themes, Ashmore's active investment processes delivered high
levels of outperformance over the quarter and are therefore
recovering the mark-to-market underperformance generated by the
sharp market declines in February and March, as is normal for the
Ashmore process. Despite the rally over the quarter, valuations
across fixed income and equity markets still offer substantial
upside and opportunities for further outperformance.
There were net outflows in the blended debt, local currency,
external debt and overlay / liquidity themes as clients react to
the extreme market conditions seen in the previous quarter. The
outflows in blended debt, external debt and overlay / liquidity
were predominantly from institutional clients, and in local
currency there was a mix of segregated account and mutual fund
redemptions. The equities and corporate debt themes had net
inflows, mainly driven by new institutional client mandates and, in
equities, reflects the increasing recognition of the strong track
record being delivered even through the recent market
volatility.
Mark Coombs, Chief Executive Officer, Ashmore Group plc,
commented:
"Ashmore has continued to operate effectively through the period
with the safety of its employees remaining paramount. The
consistent implementation of Ashmore's active management approach
focuses on identifying value for our clients and is delivering
meaningful alpha as markets recover from the lows seen at the
beginning of the quarter.
"The global macroeconomic outlook remains uncertain, and the
experience of individual countries will vary considerably, but it
is increasingly apparent that the Emerging Markets in aggregate are
less likely to suffer a recession as severe as that in the
developed world. Meanwhile, current valuations are discounting a
different scenario with Emerging Markets assets trading at
significantly more attractive levels than the equivalent developed
world bond and equity markets. Therefore, as investors continue to
assess the impact of Covid-19 on their portfolios, there is a clear
opportunity to enhance returns by increasing allocations to assets
offering exposure to the superior domestic growth and yields that
continue to be available across equity and fixed income markets in
the Emerging world."
Notes
For the translation of US dollar-denominated balance sheet
items, the GPD:USD exchange rate was 1.2356 at 30 June 2020 (30
June 2019: 1.2727; 31 December 2019: 1.3248). For the translation
of US dollar management fees, the average GBP:USD exchange rate for
the financial year was 1.2637 (FY2018/19: 1.2958).
Ashmore will announce its results in respect of the year ended
30 June 2020 on 11 September 2020.
Ashmore's Legal Entity Identifier (LEI) is
549300U3L59WB4YI2X12.
For further information please contact:
Ashmore Group plc
Paul Measday
Investor Relations +44 (0)20 3077 6278
FTI Consulting
Neil Doyle +44 (0)20 3727 1141
Laura Ewart +44 (0)20 3727 1160
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END
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