JP Morgan Asset Management reported an almost 40% fall in net profits in the first quarter compared with the same time last year as falling assets under management and a downward-spiralling market for most of the quarter hit performance fees.

Net profits in the three months to March 31 was $224m (€170.2m), down 37% from the same time a year ago and about 12% from the fourth quarter of 2008. The fall was "driven by the effect of lower markets and narrower deposit spreads", according to JP Morgan's earnings statement.