Gartmore sees £7.2bn of outflows in 2010
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Gartmore has been hit with a £2.1m interim FSCS interim levy bill after announcing £7.2bn of net new business outflows in 2010.
A difficult year for the asset manager, which is set to be acquired by Henderson, has seen Gartmore’s assets under management fall from £22.2bn to £17.2bn while net revenue fell from £223.7m to £208.7m.
The £7.2bn of outflows compare to £300m of net inflows in 2009.
A tough 2010 saw the likes of flagship European manager Roger Guy, co-manager Guillaume Rambourg and chief investment officer Dominic Rossi all leave the asset manager.
As of December 31, 2010 Gartmore’s assets under management fell to £16.5bn taking into account notifications of redemptions of £0.7bn received up to January 7, 2011.
Chief executive Jeff Meyer says: “We were pleased with our progress through the end of the first quarter 2010, but events after this caused us to consider other strategic opportunities in order to preserve value for shareholders and maintain client support. In view of this the proposed transaction with Henderson Group represents a good outcome for shareholders while ensuring continuity for clients. The strategic and financial benefits of the transaction are significant. The plan for integration is proceeding on schedule, with the majority of portfolio managers representing 84 per cent of assets under manangement joining Henderson.”
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