Absolute return funds boost Gartmore's assets under management
Share
Gartmore has reported net inflows of £485m into its mutual funds for the year ended December 31, 2009, boosting its assets under management by 19 per cent compared with 2008.
Over the course of the year the group’s assets management rose to £22.2 billion, up from £18.7 billion at the end of 2008. Over the course of the year the group launched three absolute returns funds which raised £900m.
At the end of 2009 Gartmore held £12.2 billion in mutual funds, spread across 52 different funds.
In a statement to the stockmarket Jeffrey Mayer, chief executive officer of Gartmore said: “Retail flows have been strong in the UK over the past two years dominated by corporate bond and other fixed interest funds as clients seek lower risk products avoiding the volatility of equities with the attraction of a higher income than deposits.
“However there are signs that this trend may have played out as the corporate bond sector has recently moved into net outflows.”
He continues: “We see the convergence between hedge and retail continuing strongly over the next few years and believe Gartmore’s position as a leading hedge fund business puts us in a strong position to continue to attract retail absolute return fund flows.”
Overall in 2009 Gartmore attracted net new business of £252m. Meanwhile, an initial public offering (IPO) conducted in December, which raised £280m, was used to repay debt.
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
