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UPDATE 1-Ashmore assets boosted by fresh inflows

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* AuM rises 6.8 pct to $68 bln * Net inflows $600 mln * Asian, Middle East investors add cash

LONDON, Oct 11 (Reuters) - Ashmore Group saidassets under management rose 6.8 percent in the three months toend-September as rising markets and fresh inflows from Asian andMiddle Eastern government-related investors boosted the emergingmarkets-focused manager.

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

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

Ashmore said net inflows went into its blended debt andlocal currency products, while investors withdrew money frommulti-strategy, external debt, equities and corporate debtthemes.

London-based Ashmore has grown rapidly in recent years asmore investors decide to buy into funds that bet on fast-growingemerging markets.

However, the group, which was recently demoted fromBritain's bluechip FTSE 100 index, has also seen the amount offees it earns on the money it manages come under pressure, amidgreater competition for emerging markets funds and an investorshift towards less lucrative products.

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

Shares in Ashmore closed at 356.2 pence on Wednesday.

(Reporting by Tommy Wilkes, editing by Anjuli Davies)

((thomas.wilkes@thomsonreuters.com)(+44 207 542 0067)(ReutersMessaging: thomas.wilkes.thomsonreuters.com@reuters.net))

Keywords: ASHMORE TRADING/