Gartmore has suffered net outflows of £1.65 billion over the six months to end of June, more than double its net outflows over the same period last year.
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. (article continues below)
Gartmore’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.
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% to £143.4m and EBITDA was 146% higher at £38.8m.
Gartmore has not declared a dividend, as it is concentrating on reducing its net debt of £83.9m.