This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more
Gartmore announces external review of its business Go compare with our comparison table

Gartmore announces external review of its business

09 November 2010 / by Paul Dicken

Fund manager Gartmore has announced a £10million cost reduction programme and a strategic review of its business by Goldman Sachs which could lead to its sale.

In a statement on 8 November, the company said it regularly reviewed its business but had decided to formalise current deliberations in light of the performance of the company’s share price.

Since the beginning of the year Gartmore’s share price has fallen substantially with further falls following the announcement on 8 November. As trading opened on 9 November, shares were up 2.06 per cent.

Gartmore said it had brought in Goldman Sachs to analyse the ‘strategic options’ for the company. Chief executive Jeffrey Meyer said these could include ‘the possibility of a sale or merger.’

In parallel to this analysis the group said it was aiming to strengthen its business and is putting in place transitional arrangements following the announcement that Roger Guy, head of the European Large Cap fund team, is to retire from day-to-day fund management.

Jeffrey Meyer said: “Roger Guy’s decision to retire follows 17 years managing money at Gartmore. We respect his wish to spend more time pursuing other interests, not least spending some more time with his young family. We are pleased to have him available until next May to ensure a smooth transition.”

Gartmore’s chief investment officer, Dominic Rossi, also announced he is to resign from the company.

Results for the third quarter of 2010 showed Gartmore had increased its assets under management by four per cent, but the impact of positive market movement and fund performance had been offset by net outflows of £0.7billion.

Having already announced £2million of cost savings, the company said it would save £10million over the next two years. These savings will come from its head office relocation, ‘reviewing a small number of sub-scale investment capabilities’ and reducing headcount.

The company also said it would provide equity incentives for key portfolio managers, putting in place equity grants by issuing up to 15 per cent of the company’s existing share capital, to ‘ensure the retention and incentivisation of its investment management talent’.

© Fair Investment Company Ltd

 Product NameISA OptionIncome YieldMore Info
Henderson Strategic Bondyes5.7%More Info >
Income Paid Quarterly. Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. See latest fund factsheet for details.
Newton Asian Incomeyes5.43%More Info >
Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Newton Higher Incomeyes5.4%More Info >
Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Invesco Perpetual Distributionyes4.7%More Info >
Income Paid Monthly. Invesco Perpetual Distribution offers a balance between both income and capital growth through investment in UK based equities and fixed interest securities. See latest fund factsheet for details.
Invesco Perpetual Monthly Income Plusyes4.46%More Info >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Woodford Equity Income Fundyes3.50%More Info >
Our selected partner for investing in Neil Woodford's Equity Income fund is Barclays Stockbrokers, via their INVESTMENT ISA for new ISAs and ISA transfers, or their MARKETMASTER® ACCOUNT for non-ISA investments. Income Paid Quarterly.The fund’s investment objective is to provide investors with long-term appreciation through investing in stocks primarily listed on the UK stock exchanges. Up to 20% may be invested in international companies. The income objective is 10% higher than the FTSE All Share Index yield with an anticipated annual yield of 4.0%.
Newton Global Higher Income yes4.7%More Info >
Income Paid Quarterly. The objective of the Sub-Fund is to achieve increasing annual distributions together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Jupiter Merlin Income Portfolioyes3.10%More Info >
Income Paid Quarterly. To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. See latest fund factsheet for details.
M&G Global Dividendyes3.27%More Info >
Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details.
Kames Strategic Bond yes2.95%More Info >
The primary investment objective is to maximise total return (income plus capital ) by investing in global debt instruments,denominated in any currency, ranging from AAA Government Bonds through to high yield and emerging market corporate bonds. At least 50% of the fund will be invested in sterling and other currency denominated bonds hedged back to sterling. See latest fund factsheet for details.
M&G Optimal Incomeyes2.44%More Info >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.