Ashmore Group (ASHM) Trading update summary

Assets under management update

• AuM rose by $3.3 billion (7%) to $50.7 billion, driven by $2.0 billion in positive investment performance and $1.3 billion in net inflows.

• Net inflows were seen in local currency, equities, blended, and corporate debt, while external debt saw minor net outflows due to a few institutional redemptions.

• Fixed income indices in emerging markets increased by 2% to 5%, and large cap equity index surged by 24%.

• Most EM indices now exceed their end-February levels, except local currency due to a strong US dollar.

• Active management continues to deliver outperformance, with a consistent proportion of AuM outperforming benchmarks.

Market and macroeconomic outlook

• The risk of a global inflation shock is decreasing, contingent on stable hydrocarbon exports through the Strait.

• Real incomes are recovering, and markets are pricing in a 'Goldilocks' scenario with reduced recession risk.

• Significant capital spending on AI, energy security, defense, and supply-chain reorientation supports the outlook.

• The macroeconomic environment and recent US foreign policy are expected to be supportive for emerging markets.

• Increased market complexity highlights the value of active management and specialist expertise.