Bermuda-based investment company W.P. Stewart & Co., Ltd. has announced that net income for the second quarter has dropped 25.5 percent from $19.8 million to $14.8 million.

The company said assets under management for three months ending on June 30 fell 12.6 percent to $8.3 billion, compared to approximately $9.5 billion at the end of the prior quarter, and 10.8 percent from the $9.3 billion reported at 30 June 2001.

For the six months to June 30, net income was down 25.5 percent to $32.1 million, on revenues of $73.7 million.

Net income for the six months ended June 30, 2001 was $43.1 million on revenues of $86.9 million.

Performance in the W.P. Stewart & Co., Ltd. US equity composite for the second quarter of 2002 was -11.8 percent pre-fee and -12.1 percent post-fee.

For the six months ended 30 June 2002, the company's performance was -7.7 percent pre-fee and -8.3 percent post-fee.

W.P. Stewart's five-year performance record for the period ended 30 June 2002 averaged 7.3 percent pre-fee (6.1 percent post-fee), compounded annually, compared to an average of 3.7 percent for the S&P 500 in the period.

W.P. Stewart also announced that effective January 1, the company will adopt provisions for the expensing of stock options.

The company said it does not currently believe that this will have any material effect on its financial statements.