World's biggest publicly traded hedge-fund manager, Man Group Plc has said that its total outflows have increased 57 percent in the third quarter.

The London based company said in a statement today that the customers took a net $2.2 billion from the firm during the quarter compared to from $1.4 billion in the second quarter. It said that the customers redeemed a gross $5.2 billion from Man Group's investment funds while the sales rose $3 billion.

Chief Executive Officer Peter Clarke said that the sales remained subdued during the quarter. Investors have been cautious in investing in hedge funds due to European sovereign debt crisis and concern about global economic growth.

He said in a company statement that, "The flow environment continues to be challenging and this was reflected in lower sales in the quarter. Investor sentiment, and consequently the outlook for flows, continues to be subdued."

The company's assets under management increased 14 percent in the third quarter to $60 billion following its acquisition of hedge fund investment firm FRM Holdings Ltd., which added $8.3 billion. The favorable investments made during the period helped the firm increase its funds by $500 million.

Hedge funds recorded an increase of an average 3.6 percent in the first nine months of the year, which is lower than similar indices for equity.