ii view: demand returns at EM fund manager Ashmore
Shares in this FTSE 250 company have more than halved over the last five years. But as investors seek alternatives to US assets, could this high yielding emerging markets play be worth considering?
15th January 2026 11:38
by Keith Bowman from interactive investor
Second-quarter trading update to 31 December
- Net inflow of funds of $2.6 billion
- Total assets under management (AuM) up 8% from the previous quarter to $52.5 billion
Chief executive Mark Coombs said:
"Ashmore delivered good AuM growth over the quarter with meaningful net inflows across fixed income and equities investment themes, in both global and local businesses, and continued strong investment performance for clients.
“It is clear that investors are acting upon the attractive risk/reward opportunities available across emerging markets and are benefiting from the continued outperformance of these markets.”
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ii round-up:
Specialist emerging markets (EM) fund manager Ashmore Group (LSE:ASHM) today detailed a first net inflow of monies for more than four years.
A net inflow of funds during its second-quarter period to 31 December of $2.6 billion contrasted with a net outflow of $300 million during the prior first quarter. The City had forecast a small net inflow of $0.1 billion.
Shares in the FTSE 250 company rose 16% in UK trading having come into this latest news up by a tenth during 2025. Emerging market bond, or fixed income indices returned up to 19% in 2025, with EM equity indices climbing as much as 35%. The FTSE 250 rose 9% last year and the S&P 500 by 16%.
Ashmore invests in asset classes including government and corporate debt, equities, and real estate across emerging markets on behalf of both institutional and retail clients.
Assets under management at 31 December totalled $52.5 billion, up from $48.7 billion as of late June. The 8% increase came via a combination of $2.6 billion in new funds and $1.2 billion of investment gains.
Chief executive Mark Coombs highlighted factors which he believes underpin the near-term outlook for emerging market countries. These included superior economic growth compared with the developed world and relatively low or falling inflation, with central banks cutting interest rates in many countries.
Ashmore is scheduled to announce first-half results on 12 February.
ii view:
Ashmore was started in 1992 as part of the Australia and New Zealand Banking Group. In 1999, it became independent and listed on the London Stock Exchange in 2006. Headquartered in London, most of its investments are made across bond or debt markets, with around 17% in equities and less than 4% in alternative assets.
For investors, any ramping up of the tariff war between the US and EM nations could reduce exports from EM nations, hindering economic growth. The uncertain economic outlook offers many routes for the US dollar to potentially strengthen, dampening emerging markets and causing clients to withdraw funds – EM debt is often priced in US dollars, with a stronger dollar making interest payments more expensive. Competition generally across the fund management industry remains intense, while a forecast price/earnings (PE) ratio above the three- and 10-year averages may suggest the shares are not obviously cheap.
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On the upside, US trade tariffs could still see less trade conducted with the US, reducing demand for the US dollar and thereby weakening the greenback, benefiting EM nations. Ashmore’s specialist focus on EM helps set it apart from the pack. Consolidation across the asset management industry remains a possibility, while cash and deposits held as of late June of £350 million continues to support shareholder returns.
On balance, and despite ongoing risks, exposure to emerging markets and a prospective dividend yield of over 9% will likely see fans of this specialist fund manager remain supportive.
Positives:
- Diversity of assets managed
- Attractive dividend (not guaranteed)
Negatives:
- Uncertain economic outlook
- Fee pressure from ETF funds
The average rating of stock market analysts:
Weak hold
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