UPDATE 1-Ashmore assets boosted by fresh inflows

Thu Oct 11, 2012 2:26am EDT

Related Topics

* AuM rises 6.8 pct to $68 bln

* Net inflows $600 mln

* Asian, Middle East investors add cash

LONDON, Oct 11 (Reuters) - Ashmore Group said assets under management rose 6.8 percent in the three months to end-September as rising markets and fresh inflows from Asian and Middle Eastern government-related investors boosted the emerging markets-focused manager.

In a trading update released on Thursday, Ashmore said the money it manages on behalf of clients had grown to $68 billion at the end of last month, up from $63.7 billion three months earlier.

Net inflows accounted for $600 million of the rise, while positive investment performance $3.7 billion.

Ashmore said net inflows went into its blended debt and local currency products, while investors withdrew money from multi-strategy, external debt, equities and corporate debt themes.

London-based Ashmore has grown rapidly in recent years as more investors decide to buy into funds that bet on fast-growing emerging markets.

However, the group, which was recently demoted from Britain's bluechip FTSE 100 index, has also seen the amount of fees it earns on the money it manages come under pressure, amid greater competition for emerging markets funds and an investor shift towards less lucrative products.

The fund manager is trying to win more retail clients but its business remains weighted towards institutions.

Shares in Ashmore closed at 356.2 pence on Wednesday.

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