Shares of FTSE 250-listed Ashmore Group (GB:ASHM) soared nearly 7% as of writing after the company reported asset growth in its Q1 trading update. As of September 30, the total AUM (assets under management) reached $51.8 billion, reflecting a 5% increase compared to the previous quarter. Assets under management rose by $2.5 billion during the quarter.
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Ashmore Group is an investment management firm that focuses on equities and various asset classes within emerging markets.
Ashmore’s Update Highlights a Favourable Shift
Ashmore’s favourable update marked a reversal of years-long underperformance for the company. Over the last few years, the company has faced challenges in emerging markets due to a struggling Chinese economy and the negative impact of the Russian invasion of Ukraine on sentiment in Eastern European markets.
Reversing that, it reported a positive investment performance of $3.2 billion in the first quarter of FY25. Additionally, the net outflows for the period declined to $0.7 billion from $2 billion in the previous quarter. Meanwhile, emerging markets posted solid returns over the quarter, with fixed-income indices climbing between 4% and 9%, while equities rose 8%. The numbers indicate a rising interest in emerging market investments.
Among its asset classes, fixed-income AUM increased 5% to $43.3 billion, while equity market AUM grew 9%. On the other hand, alternative AUM declined 8%.
The company credited its improved performance to a weakening US dollar, better macroeconomic conditions, and China’s fiscal stimulus plans. Moving forward, the company expects investments in emerging markets to further grow across equity and fixed-income asset classes.
Is Ashmore Group a Good Buy?
On TipRanks, ASHM stock has received a Hold rating backed by four Holds, two Sells, and one Buy recommendation. The Ashmore share price forecast is 172.68p, which is 17% lower than the current trading levels.
