Rathbones, the wealth and asset management firm, has announced the sale of another of its offshore trust businesses as it reported a sharp decline in total assets under management during 2008.
The Group disclosed in its trading update on January 8 that it has entered into a non-binding heads of terms agreement to sell its Geneva-based trust business, Rathbone Trust Company SA, to its management. The net asset value of Geneva as at December 31, 2008 was GBP1.7m (USD2.55m).
The announcement comes less than three months after Rathbones completed the disposal of its offshore trust operations in Jersey to Hawksford Holdings Limited for a total consideration of GBP28.5m. Meanwhile, discussions with Hawksford are continuing regarding the potential sale of the Singapore-based trust company, Rathbone Trust (Singapore) Pte. Limited. Rathbones said that it is also exploring "other options...to secure an appropriate future ownership structure." Discussions regarding the possible sale of Rathbones's British Virgin Islands-based trust business to its management are also ongoing.
According to the trading update, total funds under management as at December 31, 2008 were GBP10.46bn, down 20.3% compared with GBP13.12bn as at December 31, 2007. Funds managed by Rathbone Investment Management Limited were GBP9.43bn as at December 31, 2008, down 16.0% from GBP11.23bn as at December 31, 2007. However, this compares with a 31.3% fall in the FTSE 100 index and a 20.1% fall in the FTSE APCIMS Balanced index over the same period.
The underlying annualised rate of organic growth in funds under management in Rathbone Investment Management was 7.3% in the year ended December 31, 2008.
Funds managed by Rathbone Unit Trust Management Limited fell from GBP1.89bn as at December 31, 2007 to GBP1.03bn as at December, 31, 2008, a decrease of 45.5%. In common with other market participants, net unit trust redemptions during the year were high, comprising some GBP234m.
Rathbones said that the outlook for the year ahead remained "challenging" but that the company is "well-positioned to take advantage of organic growth opportunities."
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