Ashmore: Asset manager’s stock surges as investor withdrawals subside
Ashmore stock surged five per cent in early trading this morning after the asset manager reported a sharp reduction in outflows.
Investors pulled $400m (£327m) from the emerging markets specialist over the last quarter, down from $700m (£572m) in the three months before and below the $1.1bn (£900m) expected by analysts.
When excluding a liquidity fund that Ashmore closed during the quarter, this falls to just $200m (£163m).
“Despite market volatility in the quarter and lower emerging market indices, Ashmore has significantly improved its net outflows rate,” said Peel Hunt analysts Stuart Duncan and Robert Sage.
The news provided a much needed bump to Ashmore’s stock price, which has suffered from years of investor withdrawals as emerging markets fall out of favour with markets.
However, while Ashmore’s stock price jumped this morning, the firm is still down more than 30 per cent in the last year, and 5.8 per cent since the start of 2025.
The firm saw a significant increase in assets under management for its alternatives arm, jumping from $1.2bn to $1.5bn, but total assets under management for the firm still fell six per cent to $48.8bn (£39.9bn).
Performance also hit the group’s assets under management, with the main emerging markets benchmark indices declining by between one per cent and eight per cent.
“As inflation and rate expectations have shifted in the US, emerging markets assets have struggled again more recently,” added Duncan and Sage.
“However, given the attractive valuations that we believe are on offer, this should change, though the timing is uncertain.”
Ashmore is currently rated as a Buy by three analysts, Hold by five analysts, and Sell by four analysts, according to data from AJ Bell.
“While market conditions were more volatile this quarter, particularly leading up to the US election, the group’s flows continue to improve as clients increasingly recognise emerging markets’ resilience and the delivery of outperformance by Ashmore’s established, active investment processes,” said Ashmore CEO Mark Coombs.