Assets under management at Switzerland's GAM were up 6 per cent from SFr45.4 billion (about $48.7 billion) at end-June to SFr48.2 billion as of 30 September, driven by buoyant market performance and positive net new money growth during the quarter.

The firm said the increase in AuM also reflects the inclusion for the first time of SFr742 million of AuM at Arkos Capital, following GAM’s acquisition of a majority stake in the company in July.

GAM’s broad alternative single manager range - the absolute return fixed income, global macro, discretionary FX and emerging market rates strategies, as well as the newly-integrated strategies of Arkos Capital - recorded inflows from both institutional clients and wholesale channels.

"Investor demand, especially from private clients, continues to be focused on liquid and regulated single manager alternative products, with GAM’s traditional offshore funds of hedge funds experiencing net outflows, primarily from products where performance was below historic highs," the firm said in its interim management statement.   

However, the firm added that "persistently high levels" of risk aversion amongst investors in the third quarter negatively affected investment in equities. As a result, modest inflows into equity strategies with strong relative performance were offset by outflows elsewhere.

GAM said overall outflows are still concentrated in assets held with its historic private banking partners, although this "structural headwind should ease considerably in future years given the now-modest remaining legacy assets and the continuing progress of GAM’s diversification strategy".

Meanwhile, Swiss & Global Asset Management, part of GAM, reported SFr87.4 billion in AuM as at 30 September, up 6 per cent from the SFr82.6 billion recorded at the end of June. The firm said this was driven by healthy net new money growth in line with targets, as well as positive market performance.

Net inflows into active fixed income funds continued to be strong, reflecting investors’ "ongoing search for attractive returns in the current low-yield environment", the firm said.

Physical precious metal exchange-traded funds, particularly the gold fund, benefited from the asset class's "safe haven" status, enjoying solid net inflows in the third quarter, the firm said, adding that interest in equity funds remained subdued, resulting in modest net outflows for the quarter.

GAM Holding reported an increase of SFr5.7 billion in group AuM since 30 June, ending the quarter at SFr116.8 billion.