Brooks Macdonald's acquisition of Spearpoint helped drive a 44% rise in FUM in the second half of last year, although the firm continues to count the cost of RDR.
FUM rose from £3.205bn to £4.620bn between H2 2011 and H2 2012, as the purchase of the Channel Islands-based manager of the Arch cru funds added £686m of assets to the business. This included funds totalling £85m and advisory assets of £357m in an acquisition which took place in November last year.
This total £1.1bn growth in assets included £414m of organic and market growth, with the Spearpoint assets stripped out.
The wealth manager factored in costs of £1.05m for the Spearpoint deal.
Meanwhile, property assets under administration, managed by Braemar Estates, grew to £885m an increase of 14% from 2011.
In its half-year results covering the six months to 31 December 2012, the AIM-listed wealth manager also reported a 4% increase in pre-tax profit and a 30% increase in adjusted pre-tax profit between the second half of 2011 and the second half of 2012.
Revenue increased 23% from £4.08m to £4.26m year on year and basic earnings per share dropped 4% from 26.44p to 25.35p. The group will pay an interim dividend of 6.5p per share, up from 6p.
Brooks Macdonald said the Retail Distribution Review (RDR) has warranted a "huge amount" of system development and one-off costs. "While this is legislation we welcome, it has led to increased one off and ongoing costs for regulation.
"In addition to these costs we have continued to invest in the business with investments into system development, the investment management and research process and our funds business," the firm said.
For the six months ended 31 December 2011, Brooks Macdonald made a provision of £140,000 in for the Financial Services Compensation Scheme (FSCS) interim levy for 2011/12.
For the year ended 30 June 2012, the group’s administrative costs included a total charge of £396,000 in respect of FSCS levies for 2011/12 and 2012/13. It has also set aside £240,000 to cover the estimated levy for 2012/13 and 2013/14.
Chris Macdonald, CEO (pictured), commented: “The half year has been another successful period of growth across the group, culminating in our acquisition of Spearpoint in November. “We have had an encouraging start to our second half and look forward with confidence. Since the period end funds under management have continued to grow, with the additional benefit of higher equity markets.
"We remain focused on completing the successful integration of Spearpoint and anticipate it beginning to contribute to our growth in the second half of the calendar year.”
FCA checked files
Properties do not exist
Follows active fee cuts in June