British hedge fund firm Man Group posted a seventh consecutive quarter of net withdrawals as clients pulled out money during a volatile period for markets.

Man, in the process of buying smaller rival GLG Partners, said that total assets under management – on which fund firms earn fees – fell 2.2 percent over the three months to end-June to $38.5bn.

Net client withdrawals were $1bn.

Citi analyst Haley Tam called the update “disappointing” but said redemptions by institutional clients were lower than in previous quarters and advised clients to buy on weakness.

“On a 12-month time horizon we are bullish on fund inflow prospects in high margin retail assets under management due to new product launches,” she said in a note. “In the meantime, Man Group offers a seven percent dividend yield.”

Man, the world’s largest listed hedge fund firm, has been hampered by poor performance from its $21.2bn flagship AHL fund and has missed out on the inflows seen by the wider hedge fund industry over the past year.

“Given the continued market uncertainty, sales in the quarter have, as anticipated, remained subdued,” said Chief Executive Peter Clarke in a statement.

Some investors have grown nervous after a 10 percent drop in world stocks, as measured by MSCI, in May on concerns over the pace of global growth and the debt crisis in southern Europe.

Man Group raised hopes in May that it had finally stemmed outflows with news that asset levels were little changed between the end of March and the end of May.

Man said on that AHL – named after 1980s founders Michael Adam, David Harding and Martin Lueck – is up 2.3 percent in the first five months of this year, ahead of an average 0.16 percent decline from managed futures funds, according to Credit Suisse/Tremont. Last year AHL lost around 16 percent.