GLOBAL – Pre-tax profit at UBS Global Asset Management has slipped almost 20% in the third quarter despite three billion Swiss francs (1.9 billion euros) of new institutional business.

“Global Asset Management’s pre-tax profit in third quarter 2004 was 105 million francs, down 26 million francs from second quarter,” the Swiss bank said in its earnings statement.

Operating income slipped one percent from the previous quarter – “as the impact of weakening equity markets offset the effect of inflows of net new money on the asset base”.

It gained three billion francs of net new institutional money in the period – down from 7.6 billion francs in the previous quarter. The unit now has 342 billion francs in institutional assets under management, up 12% from 305 billion francs a year ago.

UBS has gained 20.7 billion francs in net new institutional money so far this year.

“Strong inflows were recorded in equity mandates in Europe and in alternative and quantitative investments as well as the real estate business,” UBS said. “This was partially offset by a wider industry trend away from asset allocation products, particularly in the UK.”

It said mandate wins so far in the UK include: Mothercare, Surrey, Warwickshire, MGM and Devon.

Overall, UBS posted a net profit of 1.67 billion francs, down from the 1.97 billion francs of the previous quarter and the 1.68 billion francs a year ago.