SWITZERLAND - The Julius Baer Group says it gained CHF9bn (€5.8bn) in institutional assets under management in the first half of 2005.

Total assets under management were up CHF16bn, or 11% at CHF151bn. The firm’s total net profit rose by 15% to CHF130m.

“The renewed growth of assets under management provides a sustainable foundation for future earnings growth," said chief executive Walter Knabenhans.

“It remains clearly evident that asset management for private and institutional clients will continue to be a growth market.”

Institutional asset management now accounts for CHF90bn in assets, which consists of CHF55bn in investment funds and CHF35b in institutional mandates.

A 22% rise in AUM at the asset management arm led to a 41% rise in operating income to CHF225m.

It said institutional mandates, which accounted for CHF3.5bn billion of net new money inflows, climbed to a total volume of CHF35bn. Investment funds had a CHF5.5bn inflow to CHF55bn.

Knabenhans said the firm is looking at “targeted and swift” expansion in Eastern Europe and Latin America.

It would launch four new private banking offices in Germany this year but added it also continues to assess possible acquisition opportunities.

It would also sell its 51% stake in the Italian joint venture Julius Baer Creval that was launched in autumn 2002 to partner Credito Valtellinese. It plans to pursue an independent private banking strategy in Italy.