Gartmore Group assets drop 5%

14 May 2010

Gartmore Group recorded a drop in the value of its assets under management of around five per cent last month.

The British firm saw its assets fall to £22.4 billion ($33 billion) after clients pulled out £834 million in April 2010.

In late March, Gartmore had announced it was launching an internal investigation into fund manager Guillaume Rambourg over allegations he was directing orders on buying and selling stock from favored brokers.

He ran the company's two biggest hedge funds, but has now been assigned a new role at Gartmore as an investment analyst, reports Bloomberg.

Jeffrey Mayer, the chief executive officer of Gartmore, said he believes the furore caused by the affair is now at an end.

"If you look at the pattern of it, the vast majority of notifications of redemptions occurred right at the time of the suspension," he said.

Mr Mayer said he believed the asset drop would be a "one-time hit".

Earlier this month, Tony Lanning, head of the MultiManager fund at Gartmore, forecast that the result of the UK election would have little effect on equity markets.

By Claire Archer

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