Discretionary funds rose from £3.52 billion ($5.4 billion) in June 2012 to £5.11 billion, representing an increase of £140 million, or 2.8 per cent, over the final quarter.

Excluding the acquisition of Spearpoint, funds under management rose 25.6 per cent (£904 million) over the period.

Discretionary funds under management acquired as part of the Spearpoint acquisition totalled £686 million (£601 million portfolios and £85 million in funds). At year end this totalled £650 million.

As at 30 June 2013, advisory funds under management formerly managed by Spearpoint totalled £348 million, down from £357 million in December 2012.

In contrast, Brook's Macdonald's property management business, Braemar Estates, had property assets under administration of £1.4 billion at the year end, an increase of 20 per cent (30 June 2012: £865 million).

Brooks Macdonald said that ahead of the Retail Distribution Review it has positioned its managed portfolio service fees at the same level across new and existing funds. As a result of RDR, it reported that compliance and regulatory costs had "increased significantly".

Brooks Macdonald said it is planning for continued organic growth and the launch of new funds, and had taken a number of steps to do this, including the upgrading of systems.

However, the group warned that its investment in the medium to long-term would have a negative impact on its 2014 profit margins.