SWITZERLAND - Institutional assets under management at UBS Global Asset Management slipped by CHF15bn (€9.5bn), or 3%, in the second quarter to CHF451bn due to currency and market effects.
"This was mostly because of the US dollar's 6% decline against the Swiss franc, only partly offset by inflows of net new money," the Swiss bank said in its second-quarter financial statement.
Net new money in the institutional business was CHF4.9bn, down from CHF7.1bn in first quarter 2006.
"The decline reflected outflows in equities, mainly in the US," UBS said. "Inflows were seen in alternative and quantitative investments' multi-manager products, fixed income, real estate and asset allocation mandates."
Overall inflows into Global Asset Management fell to CHF3.6bn in the quarter, down from CHF8.9bn a year before.
UBS said inflows from institutional clients in Europe, the Middle East and Africa and alternative and quantitative products were partly offset by equities outflows in the US.
Global Asset Management posted pre-tax profits of CHF334m in the period, 52% up on the year ago quarter's CHF220m - but 11% down on the first quarter number.
Although performance-based fees in alternative and quantitative investments fell, investment management fees "continued to rise on the back of the strong net new money inflows in the first quarter and the higher asset base in the first part of the second quarter".
UBS as a group posted a net profit attributable to shareholders of CHF3.1bn, a 47% increase. Overall new money was a "healthy" CHF 36.3bn - with CHF31.2bn coming from the wealth management businesses worldwide.
"Our performance was strong - and achieved despite the market reversal in the middle of May," said chief financial officer Clive Standish.