* Assets under mgmt reach $71 bln at Dec. 31
* Net inflows total $1 bln
* Strongest net inflows in local currency and blended debt
LONDON, Jan 15 (Reuters) - Emerging markets fund manager Ashmore Group said clients added $1 billion of new money to its range of funds in the last three months of 2012, as investors looked to benefit from a rally in assets across India and China.
In a trading statement released on Tuesday, London-based Ashmore said assets under management rose to $71 billion at Dec. 31 - its second quarter - up $3 billion from the prior quarter.
The firm said it had benefited from strong demand for its corporate debt, blended debt and local currency products and that net inflows topped $1 billion. Positive investment performance added $2 billion to its assets.
Equities, a business which Ashmore has struggled to grow and where it faces strong competition from the likes of Aberdeen Asset Management, saw further net outflows, however.
The overall net inflows outstripped the $600 million the manager reported in its first quarter, and underline the demand for emerging markets even amid more volatile markets.
Emerging market shares rallied more than 15 percent last year - including more than 5 percent in the last quarter - as signs China's economy would not slow too quickly and an easing of the European debt crisis supported prices.
Shares in Ashmore, which was founded by billionaire Mark Coombs in the late 1990s, closed at 381.5 pence on Monday, valuing the company at just over 2.7 billion pounds ($4.3 billion).