Assets under management (AUM) at boutique investment firm River & Mercantile rose 2 per cent to £31bn.
Fee-earning assets under management decreased by 1 per cent, but returns from investment performance led to an increase.
Mike Faulkner, chief executive of River & Mercantile said a number of structured equity products matured during the quarter and led to redemptions of £1.6bn.
He said: "We have always indicated that inflows and outflows from institutional clients will not be smooth across quarters as each mandate is often larger in size.
"Despite the markets at their current levels and with material uncertainties faced by investors we continue to see significant interest in this form of active equity risk management and synthetic structured equity solutions.
"Our pipeline of mandates continues to be strong and we remain well positioned to deliver on our stated strategy of growth."
Investment performance accounted for £0.3bn of asset growth in the quarter.
The company earned performance fees of £2.5m in the quarter.
Earlier this year Credit Suisse emerging market managers Al Bryant and Todd Leigh joined River & Mercantile, bringing across their two funds and $360m (£282.5m) in assets.
david.thorpe@ft.com
