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Highlights:

  • ASHM reports Q2FY25 net outflows of GBP 0.8 billion, though significantly reduced from the previous quarter.
  • ASHM AUM increases by GBP 1.4 billion, driven by GBP 2.2 billion in investment gains.
  • ASHM launches new strategies and office, including a Qatar branch and an impact debt strategy.

Ashmore Group plc (LSE:ASHM), a London-listed asset manager focused on emerging markets, reported a GBP 1.4 billion increase in assets under management (AUM) during the quarter ended 30 June 2025. This growth was primarily driven by positive investment performance of GBP 2.2 billion, partially offset by net client outflows amounting to GBP 0.8 billion.

This marks an improvement in flow dynamics compared to the prior quarter, with redemptions tapering despite continued global macroeconomic uncertainty and subdued investor risk appetite. The firm noted steady levels of client subscriptions and positive sentiment within specific product categories such as equities and alternatives.

During the three-month period, Ashmore experienced net inflows into equity strategies, with other themes such as external debt and alternatives showing flat activity. However, the blended debt, local currency, and corporate debt segments recorded net outflows. Emerging markets, where Ashmore specialises, outperformed many developed markets over the quarter. Key EM indices delivered returns ranging from +2% to +12%, supported in part by ongoing weakness in the US dollar. Local currency assets and equities were among the stronger-performing segments.

Ashmore noted that mutual fund inflows into emerging markets, while largely concentrated in exchange traded funds (ETFs) to date, may signal the early stages of broader institutional reallocation historically a pattern observed before more sustained investment flows return to the segment. In addition to its investment performance, Ashmore announced it has launched a new impact debt strategy and opened a new office in Qatar during the quarter. 

According to the firm, its proportion of AUM outperforming respective benchmarks across one-, three-, and five-year periods has improved since the beginning of 2025, driven by positive alpha in multiple strategies. While institutional investors have remained cautious due to trade disputes and geopolitical uncertainties, Ashmore management observed early signs of strategic portfolio rebalancing. A shift away from US-heavy exposures and toward undervalued emerging market opportunities is gaining traction, particularly as EM assets regain favour due to competitive valuations and improving fundamentals.

ASHM trading at 0.95% higher at GBX 169.40 per share as on 14 july 2025.