The asset management arm of SEB, the Nordic financial services company, posted a 41% fall in profits to Skr196m (€21.2m) in the first six months of the year compared with the first half of 2002, blaming the market downturn.

Assets under management fell by 1.4% to Skr567bn in the first half from Skr575bn in the same period last year. SEB has reduced its equity holdings from 42% of total assets to 33% and increased fixed income to 59% from 48% because of the volatility in the equity markets.