Rathbone profits tumble 27% on trust disposals
Rathbone Brothers, the 266 year-old asset manager, suffered a first-half profit slump of 27% after announcing it would sell its Singapore and Jersey-based units.
The London-based asset manager which targets high net worth individuals, said net income dropped to £13.7m ($27.4m) from £18.8m a year ago.
The firm attributed the fall to the planned disposal to management of its trust businesses in Jersey and Singapore.
Mark Powell, chairman of Rathbone said: "Our intention to dispose of our trust businesses in Jersey and Singapore reflects the changing climate for the use of offshore structures and services, and a belief that these businesses are best owned offshore by their management. We are confident that our trust and tax services in the UK will continue to form an important part of our offering to clients, through all of our offices in the UK. It will not affect our offshore investment management business in Jersey."
The wealth manager also said it might sell its Swiss and Virgin Islands trust units. Rathbones said it was discussing "the most appropriate ownership structure" for its Swiss and BVI trust businesses.
The wealth manager will keep its Channel Islands investment management business and its UK onshore tax and trust business.
Funds under management declined 8.6% to £12bn in the first half compared with the end of last year, not as sharp a fall as the 12.9% slump in the FTSE 100 Index over the same period.
The company said that the interim dividend is maintained at 16 pence per share and will be paid on 8 October 2008.
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