The “All-In on America” trade is showing cracks.
Ashmore Group, the specialist Emerging Markets asset manager, reported a standout quarter with $2.6 billion in net inflows and $1.2 billion in positive investment performance, signaling a tangible shift in allocator sentiment.
📊 THE NUMBERS (Q2 ended Dec 31, 2025):
- Net Inflows: $2.6 billion.
- Total AUM: $52.5 billion (Up 8% quarter-on-quarter).
- Investment Returns: Added $1.2 billion to the pot, validating the performance potential of the asset class.
⚠️ THE US CONCENTRATION RISK: Ashmore didn’t mince words about why the money is moving. They pointed directly to the “inherent risks of maintaining portfolios that have become heavily weighted to the U.S.”
- The Trigger: Volatility from President Trump’s trade policies is forcing investors to rethink their geographic exposure.
- The Opportunity: Capital is seeking “superior investment returns available in emerging markets” as US valuations remain stretched and policy unpredictable.
💡 ANALYST TAKEAWAY: For the last decade, being underweight the US was a career-ending move. These numbers suggest the tide is turning. With US markets grappling with tariff threats and rate uncertainty, institutional investors are finally rebalancing. Ashmore is the early beneficiary, proving that when the US sneezes, smart money doesn’t just catch a cold—it moves to safer valuations abroad.
👇 CIOs & Allocators: Is 2026 the year you finally overweight Emerging Markets, or is the US dollar still the only safe haven?