Gartmore to lose fund after manager exit
UK fund Gartmore is set to lose the mandate to run a £50m ($79.1 million) investment trust after its manager Gervais Williams resigned.
Agreement: Gartmore-managed trust is to merge with Artemis fund
Gartmore Growth Opportunities Plc (GGO) has reached agreement in principle with Artemis Alpha Trust Plc to merge the two companies' assets, the fund said today. The proposal will be put to a shareholder vote in December.
GGO said on September 1 it was considering its management arrangements after the resignation of smaller companies manager Gervais Williams from Gartmore.
Shareholders in GGO can opt for a cash exit at 95% of asset value but that will be limited to 30% of the trust's issued share capital. If they stay invested they will receive shares in the Artemis fund at 98.5% of asset value.
After GGO started its review of management, 14 investment managers including Gartmore submitted proposals, the fund said.
John Dodd and Adrian Paterson will manage the enlarged Artemis fund, Artemis Alpha Trust said in a separate statement.
Williams's departure from Gartmore marked the latest in a succession of setbacks this year for the fund manager.
Star manager Guillaume Rambourg quit in July to focus on a regulatory probe having previously been suspended as part of an internal investigation, sparking heavy outflows of assets as clients took their money elsewhere.
The company's shares have lost nearly half their value since listing last December.
Gartmore currently trades at around 114p, having first listed at 220p, leading to speculation the company could become a takeover target.
Another investment trust, the € 92.3m Gartmore Irish Growth fund may also end its contract with Gartmore following Williams's departure.
Gartmore Fledgling trust, which Williams also managed, has said it will continue to be run by co-manager Harmesh Suniara at Gartmore.
Gartmore has appointed Adam McConkey as head of UK smaller companies to replace Williams, who is set to leave at the end of the month.
Most watched Money videos
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Kia's 372-mile compact electric SUV - and it could costs under £30k
- Land Rover unveil newest all-electric Range Rover SUV
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mini Cooper SE: The British icon gets an all-electric makeover
- Paul McCartney's psychedelic Wings 1972 double-decker tour bus
- Incredibly rare MG Metro 6R4 rally car sells for a record £425,500
- Leapmotor T03 is set to become Britain's cheapest EV from 2025
- Introducing Britain's new sports car: The electric buggy Callum Skye
- A look inside the new Ineos Quartermaster off-road pickup truck
- Top Gear takes Jamiroquai's lead singer's Lamborghini for a spin
- What is the state pension triple lock plus plan - and how...
- Anglo American looks to South Africa as it fights for its...
- MARKET REPORT: Fever-Tree left nursing another hangover...
- Shamed Woodford told to hand back his CBE after fund...
- Crypto rush fuels money laundering fears: FCA approves...
- Ocado to be relegated from Footsie after six years with...
- Boohoo bows to investor pressure as it backs down on...
- AA adds fully electric recovery trucks to its fleet
- Hospitality group Revolution Bars rejects Nightcap...
- Do drivers called Muhammad pay more for car insurance...
- Labour dithers over NatWest share sale plan saying it...
- Takeover talks stall at Anglo American after wrangling...
- Shop price inflation falls to lowest levels since...
- SALLY SORTS IT: I ordered a blonde wig after my breast...
- Diesel drivers pay more to fill up in Britain than...
- Steve Webb's five fail-safe tricks to track down a lost...
- The hidden extras that can turn your online GP booking...
- New lung cancer drug boosts AstraZeneca as trials show...