Among the key news on UK stocks, Ashmore Group (GB:ASHM) fell by almost 3% as of writing after the company reported a decline of $2.4 billion in its assets due to continued investor withdrawals. According to its trading update, Ashmore’s AuM (assets under management) fell by 5% to $49.5 billion in the fourth quarter of FY24 compared to the previous quarter.
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Ashmore Group is an investment manager specializing in equities and other asset classes in emerging markets.
Ashmore’s Growing Outflows
In Q4, Ashmore reported net outflows of $2 billion, marking the second consecutive quarter of significant outflows. The company recorded $2.1 billion in outflows in the third quarter.
The company mentioned that the decline was mainly due to the low-risk appetite of investors and its focus on emerging markets. However, its returns from the emerging markets have been positive, underscoring the region’s resilience.
Looking ahead, Ashmore’s CEO, Mark Coombs, foresees an increase in investor demand for emerging markets, driven by structural economic reforms in these countries. This is expected to result in higher capital inflows for the company. On the flip side, he believes developed nations face challenges due to pro-cyclical fiscal expansion and rising government debt costs.
Ashmore will publish its full-year results for FY24 on September 5.
What is the Price Forecast for Ashmore Group?
On TipRanks, ASHM stock has received a Hold rating backed by four Hold, three Sell, and one Buy recommendations. The Ashmore share price forecast is 185p, which is about 6% higher than the current trading levels.
