UK - Schroders had a net outflow of institutional assets of £4.6bn (€6.8bn) and a decline in asset management profit in the first half.

The company said in its interim report that the outflows compared with £2bn in institutional withdrawals a year ago. It now has £75.7bn in institutional assets under management, down from £78.7bn at the end of 2005.

Total assets under management were down slightly from the end of the year at £122.3bn.

Institutional assets now account for 62% of total AUM, down from 64% a year ago, a spokesman said.

The outflows were "principally as a result of performance issues in Japanese equities in earlier years and continued outflows in UK balanced mandates". The Japanese equities team had now been strengthened and performance improved, it said.

And the company reported that asset management profit slipped to £96.8m from £99.8m a year ago. Revenues at the division rose to £377.3m from £311.9m.

Overall group pre-tax profit was up to £132.3m from £123.5m, with revenues increasing to £451.3m.

"Against a background of volatile markets the group has produced continued growth in revenue and profit in the first half of 2006," said chief executive Michael Dobson.

He added: "We have a major product development programme underway to meet changing client needs in areas such as liability-driven investing, quantitative strategies and absolute return products."

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