After announcing net new business fund outflows of £7.2 billion for the year 2010, Gartmore has been hit by a FSCS interim levy bill of £2.1 million.
The beleaguered fund manager, due to be acquired by Henderson for £355 million, faced a particularly difficult year after total assets under management fell to £17.2 billion from £22.2 billion in 2009. Net revenues for the year dropped to £208.7 million from £223.7 million in 2009.
Gartmore’s asset under management fell to £16.5 billion as of December 31, 2010, taking into account redemption requests worth £0.7 billion till January 7, 2011.
The fund had witnessed a net inflow of £300 million in 2009.
Andrew Formica of Henderson said both the teams are trying to assure investors that the transition will be a smooth one. Twelve managers of Gartmore have already committed to work under the management of Henderson, he added.
The fund has already witnessed high profile managers like Roger Guy, Chief Investment Officer Dominic Rossi and co-manager Guillaume Rambourg leaving the company last year.
“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 management joining Henderson”, said chief executive Jeff Meyer of Gartmore.