EUROPE - Capital International has seen its European (including UK) institutional assets decline 5% since December 2005. (Amends position of Olaf John)

The company's overall profits, however, were up 8% to £22.6m (€33.6) from £20.8m in 2005.

Capital's asset under management in Europe were down to £54bn in September from £57bn in December 2005, according to a filing at Companies House.

"It is a cyclical business so it is inevitable that you have periods in which your asset growth pauses," a spokesman for Capital told IPE.

"We will continue to focus on our primary goal which is to deliver long-term superior returns for our clients, not so much increasing our assets."

Earlier this month Fitch Ratings had affirmed its ‘AM1' rating on Capital International saying it maintains strong core capabilities despite under performance in equity portfolios. Earlier this year  Peter Armitage, global equity portfolio manager, retired and relationship manager Olaf John left Capital to join Lehman Brothers.

"The rating reflects Capital International's solid track record in managing institutional mandates and the stability of the organisation," Fitch Ratings said.