Gartmore Group on Tuesday said investors withdrew £1.8 billion ($2.8 billion) in the second quarter after the firm suspended fund manager Guillaume Rambourg.
Assets under management fell to £19.9 billion as of June 30, from £23.5 billion three months earlier, the company said in a statement. Gartmore posted additional outflows of £305 million by Aug. 2 and received notices for redemptions of £223 million on Sept. 1.
Gartmore shares have slumped by almost half this year after the company said in March that it suspended Mr. Rambourg for breaking internal rules by directing orders to buy or sell stock from favored brokers. Mr. Rambourg, who previously helped run the firm's two biggest hedge funds and a fifth of Gartmore's assets, resigned last month.
“It was without a doubt a challenging six months, it was six months that we really didn't anticipate,” CEO Jeffrey Meyer told reporters on a conference call. “We have frankly had to hit the reset button because of the regulatory issues around Guillaume on what we thought was a sound strategy.”
First-half net income dropped to £18.8 million, from £53.9 million in the year-earlier period, when Gartmore recorded a one-time gain on the value of its debt because of foreign-exchange movements.
