Tuesday, 9 March 2010

Gartmore Results for 2009 - Absolute Return Products Attract Capital

Gartmore's hedge fund range is well known, and indeed well-regarded as a whole. The reasons for that are evident from the table below which shows performance :

Note:Data is based on published NAV returns. Returns denominated in currency of the primary share class.

(1) AUM is net of performance fees accrued

(2)Annualised returns net of fees and commissions with dividends re-invested to December 2009
What is also interesting in the Gartmore results for 2009 is the growth in Absolute Return Funds

From a corporate perspective that 11 out of 14 hedge funds produced positive returns in 2009 bodes well, and that the funds in negative teritory for the year are the smaller ones also helps. 
Gartmore categorises absolute return funds as part of their mutual fund range. In 2009 the absolute return funds drew in £903m net, and the positive flows continued into 2010. In the first two months of this year Gartmore's absolute return funds had net inflows of £195m, and the company has launched two new absolute return funds in 2010. From a recent beginning the absolute return funds are now 5% of the firm's AUM, and importantly for cash flow, the absolute retun funds crystalise their perfromance fees quarterly. Last year absolute return fund contributed 10% of the firm's performance fees. Quite useful those absolute return funds, eh?

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