UK-based wealth manager Rathbone Brothers has reported a pre-tax profit of £20m for the first half of 2019.

This is a 54% slump from the previous year figure of £43.7m.

The fall was said to be caused by the takeover of Speirs & Jeffrey last year. The acquisition resulted in costs of £17.8m.

Rathbone Brothers’ underlying pre-tax profit for the first six months of 2019 was £46.6m, down 4% from £48.3m a year ago.

Funds under management (FuM) at the end of June 2019 totalled £49.2bn, up 12% from £44.1bn as of 31 December 2018. Compared to a year ago, FuM soared 23%.

Underlying operating income at its investment management division increased 15% to £155.2m from £135.3m. The business contributed £42.5bn to FuM in the first half of 2019.

Underlying operating income in Unit Trusts remained almost unchanged at £17.5m.

FuM in Unit Trusts were £6.7bn at the end of June 2019, versus £5.8bn a year earlier.

Rathbone Brothers CEO Paul Stockton said: “It has been a busy first half for Rathbones as we successfully migrated our largest acquisition to date, underwent a smooth
leadership transition and posted the highest funds under management and administration in our history.

“Investment markets look likely to remain volatile in the second half but we retain a cautiously optimistic outlook. The UK wealth industry continues to present positive opportunities for future growth which we will actively pursue.”