Ashmore reports AuM growth in December quarter

Specialist asset manager Ashmore Group reported an increase in its assets under management (AuM) for the quarter ended 31 December on Monday.

The company said its AuM grew $2.3bn during the period, driven by positive investment performance, which contributed $3.9bn, partially offset by net outflows of $1.6bn.

Compared to previous quarters, the group experienced a reduction in net outflows.

That was attributed to clients responding positively to the improving global macroeconomic environment, despite some lingering risk aversion among certain investors.

Notably, Ashmore said it saw net inflows in its equities segment.

Within the fixed income themes, outflows were distributed evenly without any significant patterns.

The company said the Federal Reserve's communication regarding the end of its rate hiking cycle, coupled with ongoing economic stability in many emerging countries, resulted in robust performance across Emerging Markets during the three-month period.

Fixed income indices saw a notable increase of 6% to 9%, while equities rose by 8%.

Most of Ashmore's investment strategies outperformed the market during the quarter.

Additionally, Ashmore's longer-term relative performance over one, three, and five years has remained consistent.

“Emerging Markets delivered good returns and outperformed most developed world indices in 2023 due to superior economic growth, effective monetary policies and the benefits of a weaker US dollar as the Fed reaches the end of its tightening cycle,” said chief executive officer Mark Coombs.

“These factors, along with attractive absolute and relative valuations, will support Emerging Markets asset prices in 2024, leading to outperformance and higher allocations from investors who currently have significantly underweight allocations to Emerging Markets.

“Ashmore continues to deliver outperformance for clients across a broad range of strategies, and activity levels have begun to reflect the improving outlook for the global macro environment.”

At 0803 GMT, shares in Ashmore Group were down 0.13% at 223.5p.

Reporting by Josh White for Sharecast.com.