Bermuda-based money manager WP Stewart & Co. Ltd. lost a quarter of its assets under management during the three-month period from April to June.

The company said assets under management (AUM) at June 30 this year totalled $2.1 billion, compared to $2.8 billion at the end of March.

The performance update provided by the company shows that it now manages just over a quarter of the $8.1 billion figure it could boast at the end of 2006.

The $700 million second-quarter fall in AUM "reflects declines in the market value of AUM as a result of performance during the second quarter, withdrawals from client accounts and closed accounts", WP Stewart said in a statement.

The company had cash and marketable securities at June 30 this year in excess of $42 million and has no debt, the staement added.

"Over the past few months a significant reduction in operating expenses has been implemented and further expense rationalisation will be undertaken during the remainder of 2008," the company said.

"The company's objective is to rationalise its expense base in order to return to profitability on a cash basis based on the current level of assets under management."