Sanders Morris Harris Group, the US wealth and asset management company, saw a ninefold increase in operating earnings for the second quarter of $1.9 million, driven mostly by a strong rise in client assets.

For the latest quarter, client assets experienced a $1.6 billion gain to $11.1 billion, up 16.3 per cent from the year earlier period. Earnings rose in both the firm's high net worth and mass affluent sectors, with all of its wealth management segments meeting or exceeding budget, the company said in a release.

Of the $1.6 billion rise, 19.7 per cent came from net client inflows and 80.3 per cent were attributed to market appreciation. The expansion of the firm's Edelman Financial offices also continued according to the plan and now sees a total of seven new branches for the year alone.

"The Edelman Financial Unit added $193 million of new assets during the quarter, including $100 million that came from our new offices. Our previously stated goal of reaching cash-flow breakeven within 15 months in each new office appears realistic," Ric Edelman, president of Sanders Morris Harris and chief executive officer of Edelman Financial Services, said in a statement.

Sanders Morris Harris noted a $3.6 million gain from continuing operations during the six months to 30 June 2010, compared to a loss of $6.6 million during the year earlier half. Revenue was at $92.8 million.