Asset manager Mavrix Fund Management Inc. reported a narrower loss for the third quarter even though market volatility caused a steep decline in assets.

Total assets under management (AUM) at Sept. 30, 2008 were $395.8 million, compared with $635.9 million at Dec. 31, 2007 and $719.8 million at Sept. 30, 2007, the company said Tuesday.

Mavrix said the declines were attributable to market depreciation and lower fund sales, reflecting continued equity market volatility.

The net loss for quarter was $418,000, or 5¢ share, compared to a net loss for $893,000, or 11¢ a share, in the year earlier period.

Revenue for the quarter totalled $2.9 million, compared with $3.1 million for 2007. The year-over-year decrease was primarily the result of the decline in AUM.

Total expenses for the third quarter were $3.3 million, an 18% drop over the prior year, as Mavrix focused on controlling costs until market conditions improve.

At quarter end, the company’s AUM was comprised of $333.1 million of mutual funds and $62.7 million of specialty funds, compared with $508.8 million and $210.9 million, respectively, at Sept. 30, 2007.

Mavrix Mutual Funds had net redemptions of $11.2 million on gross sales of $11.8 million for the third quarter of 2008. This compares with $23.7 million in net redemptions on $23.3 million of gross sales for the same period in 2007.

IE