GAM continues to feel the fallout from its absolute return bond fund saga, with client outflows of £1.4 billion in its investment management division in the quarter ending 30 September.

AUM within investment management sat at CHF 51.1 billion, down from CHF 52.1 billion at 30 June. This was driven by net outflows of CHF 1.4 billion, partially offset by positive market and foreign exchange movements of CHF 0.4 billion.

GAM said in a statement: “Net outflows recorded in August driven by client risk off sentiment with positive net inflows in July, while September remained flat.

“Investment performance remain...