Australian Wealth Management (AWM) has seen a fall in half-year profit after the financial crisis caused a decline in funds under management and clients switched to cash.

Net profit after tax and before one-off items over the six months to 31 December 2008 came in at $23.4 million, a decline of 35 per cent from $36.2 million the year before.

The company also made a $155 million write-down, the majority of which consists of a goodwill charge relating to the merger of Select Managed Funds and Australian Wealth Management in 2006.

Including one-off items the company booked a net loss of $131.6 million.

Funds under management, advice, administration and supervision (FUMAS) declined 7 per cent to $56 billion over the period.

The market was not impressed by the results and AWM's share price closed 10 per cent lower at 82.5 cents yesterday.

The company will not pay out dividends, but said it would consider a special dividend of 0.09 to 0.14 cents when the merger with IOOF is completed.

The merger was announced late last year and will create an $88 billion financial services firm. Implementation of the merger is expected to start in April this year.

AWM saw many clients switch investments and superannuation to cash during the period.

"Pleasingly, Australian Wealth Management's two major platforms, Spectrum Super and The Portfolio Service, were net flow positive for the period when you remove the effect of pension payments," AWM managing director Christopher Kelaher said.

The company did not provide guidance for the full year but said it was well-placed to continue its growth once market conditions improved.