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Administration May 7, 2002
State Street Acquires Part of UK's Gartmore
July 17, 2001 (PLANSPONSOR.com) - State Street Corp
has bought the passive equity arm of UK fund manager Gartmore
for an undisclosed amount.
Reported by Camilla Klein
Gartmore’s passive equity business has about $25.33 billion in assets under management, too little to compete with specialist passive managers such as Merrill Lynch, and about 50 institutional clients, which will be transferred to State Street.
Following the sale Gartmore plans to focus on active
fund management and will look at expanding through
non-organic growth, dependent on US parent company,
Nationwide Mutual’s asset management strategy, and will
likely seek to grow its hedge fund business.
State Street Global Advisors, the fund management arm of
State Street, will see its UK assets under management jump
to £41 billion, of which £32 billion will be passively
managed.
Although it plans to grow assets under management in the UK by between 40% and 50% per year, State Street Global Advisors is unlikely to undertake further acquisitions in the UK, according to the group.