Ashmore Group (ASHM) Trading update summary

Assets under management

• Estimated AuM rose $0.5bn (1%) in the quarter to $54.5bn, as $1.1bn net inflows more than offset $0.6bn negative investment performance.

• Estimated fixed income AuM was $41.7bn vs $42.0bn at 30 June; equities rose to $10.7bn from $10.0bn and alternatives to $2.1bn from $2.0bn.

• By fixed income theme, estimated AuM was external debt $7.6bn, local currency $17.6bn, corporate debt $5.3bn and blended debt $11.2bn.

Client activity

• Net inflows were split equally between fixed income and equities; all investment themes recorded inflows except corporate debt, which was flat.

• Gross subscriptions maintained momentum, while gross redemptions reached their lowest quarterly level in over 15 years.

• Local currency AuM included $10.1bn managed in overlay/liquidity strategies, up from $9.8bn at 30 June.

Markets and investment performance

• EM fixed income indices fell 1% to 4% but outperformed developed markets; EM equities declined 0.4%.

• Late-quarter increases in US and European government bond yields, linked to oil-driven inflation concerns, rate increases, DM debt levels and AI financing needs, drove negative performance.

• The share of AuM outperforming benchmark indices remained at 30 June levels; active management and off-benchmark opportunities were emphasized amid varied global risks.

• The outlook highlighted EM fixed income’s higher real yields than DM, EM equities’ valuation discount and earnings growth, and expected transitory US dollar strength.