Ashmore Group PLC Trading Statement (5579S)
July 09 2015 - 2:00AM
UK Regulatory
TIDMASHM
RNS Number : 5579S
Ashmore Group PLC
09 July 2015
Ashmore Group plc
+0700 9 July 2015
FOURTH QUARTER ASSETS UNDER MANAGEMENT STATEMENT
Ashmore Group plc ("Ashmore", "the Group"), the specialist
Emerging Markets asset manager, announces today the following
update to its assets under management ("AuM") in respect of the
quarter ended 30 June 2015.
Assets under Management
Actual Estimated Movement
31 March
2015 30 June 2015 Q4 vs Q3
Theme (US$ billion) (US$ billion) (%)
------------------- --------------- --------------- ----------
External debt 12.2 12.0 -1.6
------------------- --------------- --------------- ----------
Local currency(1) 15.1 15.2 +0.7
------------------- --------------- --------------- ----------
Corporate
debt 6.8 7.2 +5.9
------------------- --------------- --------------- ----------
Blended debt(1) 17.4 15.7 -9.8
------------------- --------------- --------------- ----------
Equities 4.3 3.8 -11.6
------------------- --------------- --------------- ----------
Alternatives 0.9 0.8 -11.1
------------------- --------------- --------------- ----------
Multi-strategy 1.7 1.6 -5.9
------------------- --------------- --------------- ----------
Overlay /
liquidity 2.7 2.6 -3.7
------------------- --------------- --------------- ----------
Total 61.1 58.9 -3.6
------------------- --------------- --------------- ----------
Assets under management decreased by US$2.2 billion during the
quarter to US$58.9 billion through net outflows of US$3.0 billion
and positive investment performance of US$0.8 billion.
The net outflow for the period was influenced by a small number
of relatively large and lower revenue margin redemptions in blended
debt and equities, which account for half of the net outflow in the
quarter. External debt, local currency, multi-strategy and
overlay/liquidity experienced modest net outflows. Capital was
returned to investors in the alternatives theme, while corporate
debt delivered a small net inflow. Subscriptions increased from the
preceding quarter, with a balance of new mandates and additional
funding from existing clients.
Emerging Markets assets performed well compared with Developed
Markets during the quarter, and Ashmore's absolute and relative
performance benefited from acquiring value over the previous six
months. Absolute performance was biased towards US
dollar-denominated and high yield assets, with good performance in
blended debt and corporate debt, and positive returns in external
debt and multi-strategy. Local currency experienced negative
performance, while performance in equities, alternatives and
overlay/liquidity was flat over the period.
Mark Coombs, Chief Executive Officer, Ashmore Group plc,
commented:
"Ashmore's investment processes delivered outperformance across
its themes this quarter after acquiring risk in 2014 and early 2015
at lower market levels. While Emerging Markets assets have
performed well and some value has been realised, value-based
investment opportunities remain across the range of Emerging
Markets asset classes, particularly in corporate debt and local
currency-denominated assets. Some investors are benefiting from
allocations added in recent quarters, however a broad-based
improvement in sentiment and activity levels continues to be held
back by uncertainty regarding factors such as the timing and impact
of US rate increases. We expect that once there is greater clarity,
the fundamental qualities of Emerging Markets coupled with the
inherent value that remains apparent today will lead to higher
levels of client activity and increased allocations."
Notes:
1. During the quarter, there was a US$0.5 billion
reclassification from blended debt to local currency following a
change in investment guidelines for those assets. The above
commentary on flows has been adjusted for the reclassification and
it had no other material impact at the Group level.
2. For the translation of US dollar-denominated balance sheet
items, the GBP/USD exchange rate was 1.5712 at 30 June 2015 (30
June 2014: 1.7106, 31 December 2014: 1.5577). For the translation
of US dollar management fees, the average GBP/USD exchange rate
achieved for the second half of the financial year was 1.5321 (H2
2013/14: 1.6734).
Ashmore will announce its preliminary results in respect of the
financial year to 30 June 2015 on 8 September 2015. There will be a
presentation for analysts at 0900 on that date at the offices of
Goldman Sachs at Peterborough Court, 133 Fleet Street, London, EC4M
2BB. A copy of the presentation will be made available on the
Group's website at www.ashmoregroup.com.
For further information please contact:
Ashmore Group plc
Paul Measday
Investor Relations +44 (0)20 3077 6278
FTI Consulting
Andrew Walton +44 (0)20 3727 1514
Paul Marriott +44 (0)20 3727 1341
This information is provided by RNS
The company news service from the London Stock Exchange
END
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