# Ashmore Group Plc reports $2.4 billion decline in Q2 2024 AuM

- Link: https://www.directorstalkinterviews.com/ashmore-group-plc-reports-2.4-billion-decline-in-q2-2024-aum/4121164529
- Published: 2024-07-12T07:47:12+01:00
- Author: Amilia Stone

**Ashmore Group plc **(LON:ASHM), the specialist Emerging Markets asset manager,
announces the following update to its assets under management in respect of the 
quarter ended 30 June 2024.

**Assets under Management**

| Theme | Actual
31 March 2024(US$ billion) | Estimated30 June 2024(US$ billion) | Movement (%) | 
| – External debt | 7.1 | 7.2 | +1% | 
| – Local currency | 17.4 | 17.7 | +2% | 
| – Corporate debt | 4.9 | 4.7 | -4% | 
| – Blended debt | 14.2 | 11.7 | -18% | 
| Fixed income | 43.6 | 41.3 | -5% | 
| Equities | 6.8 | 6.7 | -1% | 
| Alternatives | 1.5 | 1.5 | – | 
| Total | 51.9 | 49.5 | -5% |

Assets under management decreased by US$2.4 billion over the period, comprising 
negative investment performance of US$0.4 billion and net outflows of US$2.0 billion.

Emerging Markets returns have been positive over the past year and Ashmore has delivered
outperformance across a broad range of strategies, but in contrast to this point
in previous cycles, investor risk appetite remains subdued and institutional decisions
to reduce Emerging Markets exposure continue to drive net outflows. This trend was
notable in the blended debt theme this quarter, which, combined with small net outflows
from corporate debt and equities, exceeded the net inflows into the local currency
and external debt themes.

Market performance over the three months was broadly in line with the preceding 
quarter, with external debt, corporate debt and equity indices delivering positive
returns, while local currency bond returns were held back by a stronger US dollar.
Ashmore’s relative outperformance was also consistent with that delivered in the
previous three months.

> **Mark Coombs, Chief Executive Officer, Ashmore Group plc, commented:**
> “Emerging Markets have demonstrated resilience over the past few years, with effective
> monetary and fiscal policies underpinning superior GDP growth. Further growth 
> is supported by structural economic reforms in many emerging countries. In contrast,
> the developed world faces numerous headwinds following a period of pro-cyclical
> fiscal expansion and a sharp increase in the cost of government debt. As the trajectories
> of emerging and developed countries continue to diverge, investor appetite for
> Emerging Markets exposure will improve and capital flows will follow, supporting
> higher risk-adjusted returns in Emerging Markets over the medium term.”

**Notes**

Local currency AuM includes US$7.6 billion of AuM managed in overlay/liquidity strategies(
31 March 2024: US$6.9 billion).

For the translation of US dollar-denominated balance sheet items, the GBP:USD exchange
rate was 1.2641 at 30 June 2024 (30 June 2023: 1.2714). For the translation of US
dollar management fees, the average GBP:USD exchange rate for the financial year
was 1.2609 (FY2023: 1.2079).

Ashmore Group will announce its results in respect of the year ending 30 June 2024
on 5 September 2024.

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