Net revenues in investment management at Goldman Sachs were $1.22 billion in the third quarter, 4 per cent down from both the previous quarter and the same quarter 2010. The firm did not provide a net profit figure for the division.

Meanwhile, assets under management shrank by $23 billion to $821 billion during the third quarter of 2011.

The Wall Street giant attributed the decrease to a market decline of $29 billion, primarily in equity assets, which was partially offset by net inflows of $6 billion.

Across the group, Goldman Sachs reported a net loss of $393 million for the three months ended 30 September. This was on net revenues of $3.59 billion, with operating expenses of $4.32 billion. This is only the second time Goldmans has logged a quarterly loss since it became a public company, reports said today.

“Our results were significantly impacted by the environment and we were disappointed to record a loss in the quarter,” said Lloyd Blankfein, chairman and chief executive, in a statement

Last month, it emerged that the company’s Global Alpha Fund, a hedge fund that uses computer-driven models to make money, will be shut after having suffered losses of around 12 per cent so far this year. The fund is to close by the end of this month.