Gartmore has sold off its passive equity business to State Street Global Investors. The tracker f...
Gartmore has sold off its passive equity business to State Street Global Investors.
The tracker fund business consists of 20 staff, headed by Stewart Reed, approximately 150 institutional clients and £18.1bn in assets under management.
Approximately £12.1bn of the £18.1bn funds comprises client relationships which will transfer to State Street. The remaining £6bn is with on-going Gartmore clients and State Street will provide passive equity services on a sub-advisory basis. These clients principally comprise Gartmore's passive unit trusts and institutional clients that employ a combination of active and passive techniques.
Investors in the index tracking unit trusts and pensions will not be affected and will continue to maintain their relationship with Gartmore.
Following the sales of the passive equity business, Gartmore will focus on its chosen strategy of active fund management for institutional and retail clients, which represents 95% of its current business.
Gartmore's passive clients will see few changes since the assets will continue to be managed by the same team, under the leadership of Reed. He said: 'We are especially pleased to be joining State Street. They are committed to continuing our growth in the passive equity business. Our two teams have been working together to ensure that there will be a seamless transition.'
Clarke replacing Balkham
'Deep-dive analysis of client behaviour'
Ways to mitigate April’s increases
The best equity income funds examined