Allianz Global Investors, one of Europe's largest asset managers, said its operating profit had fallen 13% in the three months to the end of June compared with the same period last year, despite net inflows of assets amounting to €33bn ($51bn).

The company, a subsidiary of German insurance company Allianz, said its operating profit had fallen almost 13% from €314m in the second quarter of 2007 to €274m this year. Revenues fell 7% to €725m, largely due to the effect of earning fees in dollars but reporting them in euros over a period when the euro was strengthening against the dollar.