Gartmore in choppy waters after Rambourg's exit

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Investors are still pulling their cash out of Gartmore, the fund manager whose shares collapsed in the wake of an investigation into Guillaume Rambourg, its star money manager who left last month.

Issuing its half-yearly results yesterday, Gartmore said net sales had failed to meet its expectations, "primarily due to the suspension and subsequent resignation of one of our portfolio managers".

The company, which has come to be seen as a takeover target and was recently linked to its sector peer Henderson, reported that its assets under management fell by 9 per cent to £20.3bn at the end of July after £1.9bn of net outflows in the first seven months of the year.

Gartmore has endured a torrid few months since Mr Rambourg was suspended amid an inquiry into possible breaches of internal trading norms in March. After the inquiry, he returned to work as an investment analyst, but resigned in July to focus on an investigation by the Financial Services Authority, the UK market watchdog.

Countering recent rumours, the chief executive, Jeff Meyer, said Gartmore was "as vulnerable to a takeover after the announcement [about Mr Rambourg] as before". He added: "The share price remains depressed [but] we believe the firm is a very strong, stand-alone business."