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Gartmore suffers net outflows of £1.65bn

Gartmore suffered net outflows of £1.65bn for the first half of the year, more than double its net outflows over the same period last
year.

This period included the investigation into its star manager Guillaume Rambourg, who eventually left the firm last month.

Some £80m of the mutual outflows recorded during July were related to the group’s European absolute return mutual funds managed by the large-cap team, of which Rambourg was a key part.

The notice period for redemptions will be extended to August 20 in order to give investors adequate time to consider their position in the European hedge funds.

As of today, Gartmore has also received further notices for redemptions totalling £223m on September 1, which will be the first available dealing day
open to investors to redeem following the official announcement of Rambourg’s resignation.

Garmore’s assets under management had fallen to £19.9 billion at the end of June. However, they have risen since then, totalling £20.3 billion at the end of
July.

Jeffrey Meyer, the chief executive officer, says in a statement that net sales were below expectations. Gartmore’s alternative funds suffered outflows of
£110m, its mutual funds £94m and its segregated funds £34m.

Yet despite a challenging first six months, Gartmore says its underlying financial results have improved compared with the first half of 2009. Total
revenue increased by 33 per cent to £143.4m and EBITDA was 146 per cent higher at £38.8m.

Gartmore has not declared a dividend, as it is concentrating on reducing its net debt of £83.9m.

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