Schroders and Sloane Robinson, a London-based hedge fund manager, have decided to wrap up their joint emerging market fund after a long period of redemptions.

After having peaked at $390 million in assets under management in May last year, the Schroder GAIA Sloane Robinson Emerging Markets Fund now has $85 million in assets.

What is more, Schroders said in a statement that more clients have indicated that they are looking to redeem their holdings in the near future.

Both firms are in agreement that "the trend of redemptions is likely to continue and that the fund has become unviable".

Sloane Robinson has started to liquidate the fund's portfolio of investments with a target completion date of 8 August 2012. Shareholders will be paid two days later.