(ShareCast News) - Emerging markets fund manager Ashmore said assets under management fell $1.7bn (£1.18bn) in the second quarter.That took total funds under management to $49.4bn at the end of December."Net inflows to alternatives and overlay/liquidity were offset by net outflows from local currency and corporate debt, predominantly by institutional clients in Europe and Asia Pacific," Ashmore said in a trading statement."Net flows in the other investment themes were essentially neutral. The growth in alternatives assets under management arose from inflows into a 25-year infrastructure debt fund in Colombia and a capital raising to fund healthcare investments in the UAE."Investment performance over the period was broadly flat in each of the investment themes, reflecting weaker markets at the end of the quarter that offset the strong market recovery in October.Chief executive Mark Coombs said the recent rise in US interest rates had removed some market uncertainty."Historically, the early stages of US rate cycles have provided a supportive backdrop for emerging markets fixed income, and attractive yields across sovereign and corporate markets suggest these asset classes are well placed to enjoy decent performance," he said."The market weakness and volatility experienced in early 2016, notably in Chinese equity markets, will doubtless lead to some investors maintaining a cautious stance; considering the price adjustments of the past 18 months, this approach will risk missing some very good performance in Emerging Markets assets as their attractive fundamentals begin to show through."