GMHLY Gam Holding Ag (PK)

Swiss money manager GAM Holding AG has warned that falling global financial markets could hit investor demand for its funds in the coming months.

The Zurich-based firm said assets under management over the three months to Sept. 30 fell 1.5% to 72.4 billion Swiss francs ($75.8 billion) in its main unit, as falling markets more than offset demand for its hedge funds.

CEO Alexander Friedman, appointed just over a year ago to help drive sales of the firm's funds, said markets had weakened due to concerns about growth in China and other markets.

"Not surprisingly we saw investor appetite weaken and, given volatile market conditions, we expect this to continue in the months ahead," said Mr. Friedman, previously chairman of UBS's global investment committee.

GAM saw inflows into its European long-short equity, global macro and unconstrained bond funds. Clients pulled money from emerging-market fixed income and Chinese equity funds.

RBC Capital Markets analyst Peter Lenardos said that GAM's inflows were encouraging, but said he is likely to cut his forecasts due to falling markets. He added he doesn't think GAM could hit its target of growing earnings by 10% a year.

GAM also said that its private labeling unit, which lets other firms set up their own funds, saw assets fall by 3.6 billion Swiss francs to 47.1 billion francs after the loss of a mandate.

In August, GAM announced a deal to buy London-based hedge fund Renshaw Bay's real-estate debt business, which has added 500 million Swiss francs of assets, with a further 700 million Swiss francs of uninvested but committed capital.

Write to Laurence Fletcher at laurence.fletcher@wsj.com

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(END) Dow Jones Newswires

October 20, 2015 07:05 ET (11:05 GMT)

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