Gartmore sold its indexed equity business, with £18.1 billion ($25.4 billion) in assets under management, to State Street Global Advisors. Terms were not disclosed.
The sale follows a strategic review late last year in which Gartmore executives realized they did not have the resources or scale to build both an active and an indexed asset management business, said Chris Samuel, COO at Gartmore. The firm will focus on developing its active fund management business, including hedge funds, he said. The deal leaves Gartmore with £39 billion in assets under management.
The index business 150 clients including the £4.3 billion IBM U.K. plan, Portsmouth, England will be transferred to SSgA. Gartmore will retain responsibility for £6 billion in client assets, including £4 billion from the £11.7 billion Natwest Pension Scheme, London, which will be subadvised by SSgA.
Stewart Reed, head of passive equity management at Gartmore, and his team of 20 managers and client services staff will move to SSgA.