Ashmore Group Reports Growth in Assets Amid Positive Emerging Markets Performance

Ashmore Group PLC, the investment manager with a focus on emerging markets, has reported a notable increase in its assets under management (AuM) at the end of 2023. Riding on the back of what they describe as 'superior economic growth' in emerging markets, the London-based firm saw its AuM rise by 4.4% to USD54.0 billion in the three months leading up to December 31, up from USD51.7 billion in the previous quarter.

Growth Driven by Investment Performance

The firm attributes its growth in assets substantially to positive investment returns, which amounted to USD3.9 billion. However, this growth was somewhat tempered by outflows totaling USD1.6 billion in the same period. Despite these outflows, the positive performance underlines the strength and resilience of the emerging markets during a period marked by economic challenges.

Factors Behind Emerging Markets Strength

Ashmore has pointed out several factors contributing to the robust performance of emerging markets. These include the end of the US Federal Reserve’s rate hiking cycle and ongoing economic stability in many emerging nations. According to Ashmore’s CEO, Mark Coombs, emerging markets managed to outdo many developed indices in 2023, which he attributes to factors such as superior economic growth, effective monetary policies, and the benefits that come with a weaker US dollar.

Coombs further suggests that these positive indications, combined with what he considers attractive valuations, are set to propel emerging market assets in 2024. He predicts these markets to outperform, with investor allocations possibly increasing, especially from those currently underweight in their exposure to emerging markets.

Ashmore is expected to provide detailed insights into their performance with the release of their full results for the six-month period ending December 31 on February 7.

Ashmore, EmergingMarkets, Growth