GAM's assets under management (AUM) shrunk by 5.2% during the first quarter of 2022, according to its latest trading statement, despite an increased percentage of three-year outperformance from its funds relative to their respective benchmarks.
The group's overall assets fell from CHF100bn to CHF94.8bn over the three months to the end of March 2022, with the investment management arm of the business having shrunk by 6.3% from CHF31.9bn to CHF30bn. In terms of the latter, this was largely driven by negative market conditions and foreign exchange movements - both of which accounted for outflows of CHF1.6bn - while net client redemptions contributed to a fall of CHF270m.
Across asset classes, GAM's fixed income portfolios saw the biggest outflows at CHF396m, which accounted for a 6.4% fall in assets and was primarily driven by falls in the firm's Star Credit Opportunities and Local Emerging Market Bond funds.
GAM's equity funds saw net client inflows of CHF28m, most of which came from the Star Continental European Equity and Emerging Markets funds. However, market and FX moves meant AUM across equity strategies fell by CHF1bn to CHF7bn overall.
In terms of total returns over three years to the end of March 2022, 73% of the firm's AUM outperformed its respective benchmarks compared to 68% at the end of Q4 2022. Over five years, however, outperformance fell from 60% to 51% during the last quarter.
Meanwhile GAM's fund management services business reported a 4.7% fall in AUM from CHF68bn to CHF64.8bn over the last quarter.
Peter Sanderson, group CEO, said: "This has been an encouraging first quarter for GAM with net positive inflows for the firm overall. I am pleased that, despite pressure on the level of assets under management in the current market environment, our investment management business continues to improve with net inflows across a range of strategies and reduced outflows from our larger fixed income strategies."
Sanderson expects the market environment to "remain challenging" over the medium term due to geopolitical uncertainty, impending rate hikes and a low-growth outlook
"However, we are encouraged by our improved momentum so far in 2022 and believe that clients will continue to be attracted by our distinctive range of investment products and fund solutions, which can help them address their investment needs in this challenging environment," he added.