Ashmore Group Share Price Dropped 1.9% on Q2 AUM Statement

The Ashmore Group plc (LON: ASHM) share price dropped 1.93% after releasing its Q2 assets under management (AUM) statement for the quarter ended 31 December 2023. During the period, there was a notable increase in Assets Under Management (AUM) by US$2.3 billion. The growth resulted from a positive investment performance, contributing US$3.9 billion.

However, it's important to note that net outflows amount to US$1.6 billion during this time. The Group observed a reduction in net outflows compared to previous quarters. This trend suggests a change in investor behaviour, likely influenced by the evolving global macroeconomic environment.

Despite some ongoing risk aversion among specific investor segments, there has been a positive response overall. This shift is partly attributed to factors influencing market dynamics and investor confidence.

In the equities market, there was a significant development. The sector experienced net inflows, indicating a renewed investor interest or confidence in this asset class. The fixed income space, on the other hand, presented a more mixed scenario. Although there were outflows, these were evenly distributed without any significant patterns emerging. 

A pivotal factor in the period's market dynamics was the Federal Reserve's (Fed) indication of halting its rate hiking cycle. This decision and continued economic stability in numerous emerging economies played a critical role in bolstering market performance, particularly in Emerging Markets. 

Over the three months, there was a remarkable rise in fixed-income indices, ranging between 6% and 9%. Additionally, equity markets in these regions saw an 8% increase.

Mark Coombs, the CEO of Ashmore Group plc, commented: “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. These factors and 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.”

Ashmore share price. 

The Ashmore Group share price fell 1.93% to trade at 218.90p from Friday’s closing price of 223.20p.