Fourth-quarter income for asset-management firm Hennessy Advisors Inc. (Nasdaq: HNNA) of Novato dropped 62 percent, compared with the same quarter in 2017, while mutual fund assets under management dropped 29 percent, the firm reported.

The announcement put its income for the last quarter of 2018 at just above $3 million, compared with $8.1 million a year before. In that fourth quarter of 2017, Hennessy reported $6.9 million of total mutual fund assets under management, while the figure for the last quarter of 2018 was put at $4.8 million.

Average assets under management, upon which revenue is earned, decreased 17 percent to $5.6 billion.

“This quarter presented multiple headwinds for the market, which developed into a perfect storm within the asset management industry,” said Neil Hennessy, chairman and CEO, in the announcement. “Rising interest rates, the impact of trade tariffs on global markets, algorithmic buying and selling by passively managed index funds, and a partial U.S. government shutdown each contributed to investor fear and market volatility. Unfortunately, these headlines are overshadowing what I believe are solid fundamentals driving economic growth: low unemployment, strong consumer and corporate spending, and a robust banking and financial system.”

The company added it, like other companies, enjoyed a significant benefit in late 2017 from federal tax cuts. It put that benefit at $4.2 million, which translated to 54 cents in diluted earnings per share.

“We remain confident in the long-term outlook for organic growth, and we believe that the current market volatility will produce more opportunities for strategic acquisitions,” said Teresa Nilsen, president and chief operating officer, in the announcement.

Hennessy added that “once the correction is over” the firm looked forward to a rising bull market.

The board of directors declared a quarterly dividend of 11 cents per share, which will be paid March 5 to shareholders of record as of Feb. 19.

In the final minutes of trading on Tuesday, Hennessy Advisors shares hit $11.40, a fall of 33 percent in the last 12 months. But share prices have risen 14 percent since the beginning of the year.

Associated Press contributed to this report.