Gartmore has sold its £18.1bn passive fund management business to the
investment arm of US financial services giant State Street in a bid to
concentrate on its active fund management operations.
State Street Global Advisors, which paid an undisclosed sum, will assume
management of £12.1bn of the assets. Gartmore will continue to manage
£6bn, including its retail index-tracking products.
IFAs and retail clients are unaffected and retain their relationship with
Gartmore says the move will allow it to focus on active fund management
which represents about 95 per cent of its business revenue. It will look
specifically at developing more high-margin products such as hedge funds
and its new focus funds.
Gartmore chief executive Glyn Jones says: “Gartmore will now focus all its
resources on its chosen strategy of active investment management. We
believe we have the fund managers, research analysts and investment process
to develop further innovative, market-leading active investment products.”
SSGA UK managing director Nigel Wightman says: “We know the Gartmore team
well and hold them in very high regard.”