Deutsche Asset Management, which last year had begun to show signs of a turnaround, took a step backward this morning as it reported a 19% fall in pre-tax profits to €188m ($255m) in the first quarter.

The group said the result was due to lower performance fees earned from its real estate funds, which along with retail funds has kept the group afloat in the last two years. Management only expects the institutional business to turn profitable next year.