GLOBAL - Invested assets at Deutsche Bank's asset management division have slipped by €33bn amid an unspecified amount of net institutional asset outflows.

The outflows came it its Private Clients and Asset Management (PCAM) division, which comprises its investment management business, together with its traditional banking activities.

"During the second quarter 2006, invested assets decreased by €33bn to €852bn from €885bn at the end of the first quarter," the German bank noted in its discussion of PCAM in its new interim report.

It said the decrease was mainly due to market depreciation - "against a backdrop of more challenging conditions with declining market indices at the end of the second quarter, together with foreign exchange rate movements".

"Net asset outflows in AM, mainly in the Institutional business, were largely offset by net new assets in Private Wealth Management (PWM)," it said, without being more specific.

PCAM posted underlying pre-tax profits of €490m, a rise of 32%, with revenues up 15% at €2.3bn. This was mainly due to "substantial performance fees in the real estate asset management business".

Asset and Wealth Management's underlying pre-tax profits rose 67% - "reflecting performance fees in real estate asset management".

"PCAM's continued earnings growth reflects the success of our efforts to optimise this business, which now contributes a sizeable, high-quality earnings stream," Deutsche said.

Overall, the bank reported a second-quarter pre-tax profit of €1.9bn, a 32% increase.