Multi-managers are continuing to steer clear of the Gartmore European absolute return fund despite the reinstatement of Guillaume Rambourg.
Rambourg returned to Gartmore on April 28 as an analyst, not a manager, after being suspended on March 30 for “potential breaches of internal rules”.
Insight Investment sold its entire stake of around £8.2m following the suspension. Ins-ight head of multi-asset group Mike Pinggera says: “The investment team was a key driver in our decision to invest and therefore in our decision to disinvest. We will monitor the fund.”
Rathbones multi-asset fund manager David Coombs and Aberdeen head of multi-manager Aidan Kearney have also decided not to buy back into the fund until things settle down.
Kearney says: “Darrell O’Dea has been appointed to bolster the European desk but we still wait to see if there will be further management changes.”
Gartmore saw £380m net outflows on the dealing day of May 4, 2010, with £1.2bn of outflows for the year.
Chief executive officer Jeffrey Meyer says: “The business performed reasonably well during the first quarter but more recent events caused a loss of momentum.” He says a significant proportion of notified redemptions were rescinded after Rambourg’s reinstatement.