# Ashmore Group plc Strong growth in AuM of 24%

- Link: https://www.directorstalkinterviews.com/ashmore-group-plc-strong-growth-in-aum-of-24/412787616
- Published: 2019-07-12T07:27:02+01:00
- Author: Amilia Stone

**Ashmore Group plc** (LON:AHT), the specialist Emerging Markets asset manager, 
announced today the following update to its assets under management in respect of
the quarter ended 30 June 2019.

**Assets under management**

| Theme | Actual
31 March 2019(US$ billion) | Estimated30 June 2019(US$ billion) | Movement(%)^(1) | 
| External debt | 16.7 | 19.1 | +14.4% | 
| Local currency^(1) | 19.1 | 19.7 | +9.4% | 
| Corporate debt | 14.1 | 15.5 | +10.0% | 
| Blended debt^(1) | 22.0 | 24.3 | +5.0% | 
| Equities | 4.7 | 4.4 | -6.4% | 
| Alternatives | 1.6 | 1.6 | – | 
| Multi-asset | 0.5 | 0.5 | – | 
| Overlay / liquidity | 6.6 | 6.7 | +1.5% | 
| Total | 85.3 | 91.8 | +7.6% |

_ 1. During the period, theme reclassifications totalling US$1.2 billion were made
from local currency to blended debt, reflecting a change in investment guidelines
and benchmarks for those assets. The % movement in the period is stated excluding
the reclassifications._

Assets under management increased by US$6.5 billion during the period, through net
inflows of US$3.3 billion and positive investment performance of US$3.2 billion.

Client activity levels remain healthy and the period saw a consistent pattern of
existing institutional clients increasing allocations across a broad range of strategies,
coupled with continuing demand from retail clients particularly for corporate debt
and local currency products. The net inflows were highest in external debt, local
currency and corporate debt, with positive flows also seen in the blended debt, 
overlay and alternatives themes. There was a small net outflow in the equities theme.

Global market conditions improved through the quarter as US/China trade tensions
eased, central banks in Europe and the US turned more dovish and the US dollar weakened.
Against this backdrop, Emerging Markets delivered good returns. Investment performance
was positive in local currency, blended debt, external debt and corporate debt, 
reflecting tighter spreads and Emerging Markets currencies appreciating against 
the US dollar. There was a small return of capital in the alternatives theme. Ashmore’s
active investment processes continue to generate strong relative investment performance
over one, three and five years.

> **Mark Coombs, Chief Executive Officer, Ashmore Group plc, commented**:
> “Ashmore has delivered strong growth in assets under management of 24% over the
> past year, through net inflows of US$10.7 billion and positive performance of 
> US$6.9 billion. The consistent implementation of Ashmore’s active investment processes
> is delivering outperformance for clients, and the Group’s focused strategy is 
> successfully driving higher allocations to Emerging Markets and diversifying Ashmore’s
> business. The outlook for Emerging Markets remains positive, with supportive economic
> fundamentals, attractive valuations in fixed income and equities, limited opportunities
> in Developed Markets and a clear opportunity to continue raising investor allocations
> to higher, more representative levels.”

Notes

The investment performance figure of US$3.2 billion includes the effect of translating
non-US dollar share classes or funds into US dollars for reporting purposes. Over
the quarter, this resulted in a positive contribution to reported investment performance
of US$0.1 billion.

For the translation of US dollar-denominated balance sheet items, the GPD:USD exchange
rate was 1.2727 at 30 June 2019 (30 June 2018: 1.3200; 31 December 2018: 1.2736).
For the translation of US dollar management fees, the average GBP:USD exchange rate
for the financial year was 1.2958 (FY2017/18: 1.3464).

Ashmore will announce its results in respect of the year ended 30 June 2019 on 6
September 2019.

Ashmore’s Legal Entity Identifier (LEI) is 549300U3L59WB4YI2X12.

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