The company saw net outflows of $2 billion during the third quarter, bringing its assets under management to $51.9 billion as at March 31.

The outflows were driven by institutional clients looking to curb risk, and they were primarily in local currency, blended debt and corporate debt, Ashmore said.

Equities investment saw a small net inflow and hard currency markets fared well during the quarter.

"Emerging markets delivered a mixed performance over the quarter as stronger-than-expected economic data pushed back expectations of rate cuts by the US Fed," CEO Mark Coombs said in a statement.

Longer term, the company is betting on central banks in emerging economies to cut rates as inflation declines, and a weaker U.S. dollar to boost local currency bonds and equities investment.

(Reporting by Eva Mathews in Bengaluru; Editing by Mrigank Dhaniwala and Subhranshu Sahu)