GLOBAL - ABN Amro has disclosed €1.8bn in net outflows and a fall in profits at its asset management business unit in the second quarter of 2006.

It said the division had €179.7bn in assets under management at the end of June - 4.3% lower than the €188.1bn at the end of the previous quarter.

"This change in AuM [assets under management] can be explained by net outflows of €1.8bn and €4.6bn of market depreciation along with negative currency effects of €2bn," the Dutch bank said in its latest earnings report. It said the outflows were "mainly concentrated" in the US.

The division's profit for the period slipped 18% to €41m compared to the prior year quarter.

Overall, the bank posted a 23% increase in net profit to €1.22bn.

It also said it would sell its Bouwfonds property development and asset management activities to Rabobank for €845m.

And it signed a letter of intent signed with SNS Reaal for the sale of Bouwfonds property financing activities for
€840m.

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