Ashmore sees $4bn of outflows in first quarter
By Benjamin Chiou
Date: Monday 14 Apr 2025
(Sharecast News) - Shares in Ashmore dropped sharply on Monday after the emerging markets-focused asset manager reported a 5% drop in assets under management (AUM) over the first quarter of 2025.
However, the company said that while market volatility has heightened since the period-end as a result of an escalating trade war, its business model remains well placed to deal as investors rebalance their portfolios away from the US.
AUM totalled $46.2bn by 31 March, down $2.6bn over the first three months of the year, comprising a positive investment performance of $1.3bn, offset by net outflows of $3.9bn.
Ashmore blamed the outflows on a small number of large institutional redemptions towards the end of the period in the local currency theme, reflecting client specific asset allocation decisions.
Chief executive Mark Coombs said: "These decisions do not appear indicative of a broader pattern of client activity and encouragingly, levels of investor interest in Ashmore's emerging markets fixed income and equity strategies continue to be strong."
Ashmore noted that recent market volatility since the start of this month has resulted in a 1% decline in the US Treasury index and a 2% fall in US high-yield bonds - though emerging markets fixed income has fallen by less than 2% and emerging markets equities have performed in line with the US.
"This resilience demonstrates that there are increasingly powerful reasons for investors to rebalance their asset allocations away from the US capital markets, such as tighter fiscal policy and a smaller government in the US, the start of fiscal stimulus in Europe, higher rates in Japan and China's focus on boosting domestic demand," Coombs said.
"When combined with the impact of aggressive trade tariffs, these factors point to a weaker US dollar, which will be supportive for the performance of emerging markets."
Despite the optimism, Ashmore's share price was down 5.7% at 126.1p by 0914 GMT.
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