UK – The largest manager of European pension fund assets, Barclays Global Investors, has seen its profits rise by 41% but its assets under management slide by 13% in the last year.

BGI recorded a 41% rise in 2002 operating profit before tax to 110 million pounds (165.25 million euros) from 78 million pounds (117.2 million euros) in 2001.

The rise reflects “strong asset gathering, a greater proportion of higher margin active funds business” and good investment performance, the unit of Barclays Plc said in a statement.

Total assets under management fell 13% to 462 billion pounds (694 billion euros) from 530 billion pounds (796 billion euros). It had net new inflows of 56 billion pounds, offset by 52 billion pounds lost by exchange rate fluctuations and 72 billion pounds “attributable to adverse market movements”.

Fees and commissions rose 4% to 538 million pounds. Its exchange traded funds arm, Global iShares, saw its assets rise 47% to 22 billion pounds.

Barclays’ group chief executive Matthew Barrett said: "We are benefiting from the breath of BGI's business mix. It is a global leader in index funds and its active business is a substantial and growing franchise.”

“Its successful activities in exchange traded funds and in securities lending provide scope for further diversification in its sources of revenue.”