In what is likely to be its last set of results as an independent company, fund manager Gartmore Group revealed the extent to which assets have flowed out of the company.

Assets under management at the end of 2010 stood at £17.2bn, down from £22.2bn at the end of 2009, as investors pulled £7.2bn out of the company's coffers, a sharp contrast to the £0.3bn net gain in new business in 2009.

"The greatest outflows occurred in the second quarter when a key fund manager in the European Large Cap team was suspended, and in the fourth quarter following the retirement of another fund manager in the European Large Cap team," the company's chief executive officer, Jeffrey Meyer, observed.

The haemorrhaging of funds signalled the demise of the company as an independent entity, and it agreed to a takeover by rival Henderson Group in January.

As at 18 February the group has seen net outflows of £402m since the end of 2010.

"We were pleased with our progress through the end of the first quarter 2010, but events after this caused us to consider other strategic opportunities in order to preserve value for shareholders and maintain client support," Meyer explained.

"The proposed transaction with Henderson Group represents a good outcome for shareholders while ensuring continuity for clients. The strategic and financial benefits of the transaction are significant. The plan for integration is proceeding on schedule, with the majority of portfolio managers representing 84% of AUM [assets under management] joining Henderson."

Notwithstanding the above, the company still made money in 2010, though in a year in which equity markets recovered strongly, a small increase in earnings before interest, tax, depreciation and amortisation to £55.0m from £54.8m the year before does not count as a sparkling performance.

Net revenue dipped to £208.7m from £223.7m in 2009. Underlying cash earnings doubled to £39.2m from £19.5m and underlying cash earnings per share climbed to 12.3p from 10.5p the year before.

Net debt stood at £49.5m at 31 December 2010, compared to £85.3m at the end of 2009.

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