Gartmore saw revenue and assets under management tumble in 2010 as investors increasingly took their money elsewhere.
The latest figures show that net revenue fell from £223.7 million in 2009 to £208.7 by the end of last year. Additionally, assets under management slumped from £22.2 billion to $17.2 billion. The trend has continued in 2011, with investors pulling roughly £810 million from Gartmore funds since the start of the year.
The group is currently in the process of being bought out by Henderson, in a deal worth £335 million. Gartmore’s new owners are understood to be concerned by their new acquisition’s difficulty in hanging on to investors. Henderson chief executive Andrew Formica has tried to reassure clients over the coming transition, pointing to the fact that 12 of Gartmore’s fund managers have already agreed to join the buyer company. However, it has been reported that Gartmore will lose as many as 200 of its just over 300 employees as it prepares for takeover, set to be finalised by April.
Speaking about the results Gartmore chief executive Jeffrey Meyer said: “We were pleased with our progress through the end of the first quarter of 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 represents a good outcome for shareholders.”
