The Zurich-headquartered asset manager's first-quarter flows were affected by investor risk aversion and unfavourable currency movements, it said.

Switzerland-listed GAM saw its assets under management drop 4 per cent over the first quarter of 2016 to SFr114.7 billion ($119.3 billion).

The group's investment management unit suffered net outflows of SFr3.1 billion, which it attributed to investors' risk averse attitudes amid continued market turbulence. Assets managed by the division fell 7 per cent over the period to SFr67.3 billion, partly due to the weakening of the US dollar and British pound against the Swiss franc, GAM said in its results statement.

GAM expects turbulent market conditions to continue to weigh on client sentiment and asset flows in the near term, with performance fees in the first half of 2016 likely to stoop below levels reported last year.

"The start to 2016 in financial markets has been highly turbulent, leading to risk aversion among investors and affecting industry-wide flows. This created a challenging backdrop for a number of our investment strategies. We remain highly focused on delivering investment performance,” said the group's CEO, Alexander Friedman.

“We are in the midst of completing the extensive transition of our business model, adding innovative products suitable to address our clients' investment needs and working to enhance GAM's external recognition, while managing our costs in a highly disciplined fashion.”

Following release of its interim results, GAM shares fell 5.05 per cent to SFr13.15 francs at around 11:30am yesterday in Zurich. The group provides investment services and products for institutions, financial intermediaries and private investors.