Gartmore posts £7.2bn outflow for 2010

Gartmore’s annual results, released today, show £7.2bn of assets left the firm in 2010, compared to a net inflow of £300m in 2009.

Following a tough year for the firm, net revenue was £223.7m in 2010, up from £208.7 the previous year, while AUM shrank from £22.2bn to £17.2bn. It also faces an FSCS levy of £2.1m.

Gartmore’s results state: “Since the year end the group has experienced net outflows (net of notified redemptions) in January of £390m and up to 18 February of £402m.

"However, since the year end markets have been positive, partially offsetting these outflows.”

Meanwhile Henderson reported pre-tax profits of £76.5m over the 12 months to 21 December 2010, compared to £15.5m the previous year, while AUM grew to £61.6bn, up from £58.1bn in 2009, a 6% increase.

The FSCS levy will cost Henderson £7.6m.

The group saw a net inflow of £2bn, although there were outflows from some areas of the business, including from cash funds (£1bn), Pearl (£1.8bn) and the transfer of the Henderson International Property fund to Aviva Investors (£200m).

Henderson says the purchase of Gartmore is expected to be completed by 4 April.

Jeffrey Meyer, Gartmore’s CEO, says: "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% of AUM joining Henderson."

In January Henderson offered Gartmore shareholders two Henderson shares for every three Gartmore shares they hold, valuing Gartmore at £345m.

Meyer adds the deal will see each Gartmore share exchanged for 0.6667 Henderson shares, while Gartmore shareholders will be entitled to receive Henderson’s final dividend, paid in May.