LONDON (ShareCast) - Fund manager RAB Capital's first half profits will be significantly lower than last year after a sharp fall in funds under management in 2008.

"Challenging conditions have persisted over the first four months of 2008 and as at 1 May 2008 our assets under management stood at $6.34bn. This represents a decrease of approximately 12% since the end of 2007 and a 2% increase over the past twelve months," RAB said.

The decline in 2008 reflects, in broadly equal measure, negative fund performance and net fund redemptions, it added.

"On the basis of four months' trading, our current expectation is for first half earnings in 2008 to be significantly lower than those for the first half of 2007," the statement added. Income and profits are expected to be weighted towards the second half of the year.

"In current conditions, we remain determined to do all we can to protect our investors' capital. When conditions normalise, the strength of the balance sheet should assist us in taking the business forwards again," the statement, ahead of the AGM, concluded.

• News Channel