Ashmore Group Plc, an asset manager focused on emerging markets, reported its first quarterly net inflows since 2021, with clients adding a net $2.6 billion in the quarter ending December 31, 2025. This compares favorably to the $300 million in outflows experienced in the prior three months. The inflows were observed across both fixed income and equities, with notable allocations to external debt and local currency funds, alongside new institutional mandates in equities and blended debt.
This positive shift signals a potential reversal of fortunes for Ashmore, which has faced persistent client redemptions in recent years. The increase in assets under management (AuM) for the quarter was $3.8 billion, representing an 8% rise, comprising the $2.6 billion net inflows and $1.2 billion in positive investment performance.
The strong performance reflects growing investor interest in emerging markets, which outperformed developed markets in 2025. Emerging markets fixed income indices returned between 9% and 19% over the calendar year, surpassing the 8% return for developed market bonds. Similarly, emerging market equity indices increased by 19% to 35%, comfortably outperforming the S&P 500's 16% return. Analysts from JPMorgan had previously estimated that Ashmore would see small outflows until December 2025, with net inflows expected from calendar year 2026 onwards, suggesting the current inflows have materialized earlier than anticipated.
Ashmore's CEO, Mark Coombs, highlighted that investors are recognizing the attractive risk/reward opportunities in emerging markets and benefiting from their continued outperformance. He noted that the near-term outlook for emerging countries is supported by superior economic growth, low or falling inflation, potential central bank interest rate cuts, and a weaker US dollar, all of which encourage further allocations to these asset classes.
