(Corrects euro figure) SWITZERLAND – Julius Baer Group says its first-half income was boosted by a six billion-franc (3.9 billion-euro) rise in institutional assets under management.

The Zurich-based group said institutional assets under management rose 30% to 27 billion francs from 21 billion francs at the end of last year. Investment fund assets rose by the same amount, to 39 billion francs.

Total assets under management at the group, excluding global custody, rose 12% to 129 billion. “This favourable development was spurred primarily by strong new money inflows in the institutional business,” the bank said in a statement.

Chief financial officer Rolf Aeberli said: ''The favourable development in asset management particularly shows that the institutional clients value our expertise, which has a positive impact in terms of income.''

Total net profit surged to 123 million francs against 16 million francs a year ago. Operating income at the asset management division rose 34% to 159 million francs.

'''The increased assets under management and the substantially higher net profit of 123 million francs make us confident about the outlook for the rest of the year,'' said chief executive Walter Knabenhans.

The firm said that “targeted expansion” of asset management is a top priority.

''Focusing our business activities on asset management and trading provides us with the scope needed to exploit the business and growth opportunities offering the best prospects of success,'' said Knabenhans.

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