Gartmore

The Artemis Alpha and Gartmore Growth Opportunities investment trusts have reached an agreement to merge the two companies.

Equity fund managers are divided on the ability of absolute return funds to deliver positive results in current market conditions.

TIP OF THE WEEK

The board of the £54m Gartmore Growth Opportunities trust has served ‘protective' notice of termination of its management agreement with Gartmore, following the resignation of Gervais Williams.

Gartmore has awarded 3.5% of the company's equity to a group of top staff to encourage them to stay at the group.

Gervais Williams has resigned from Gartmore and will leave the firm at the end of September.

Neptune and Martin Currie are the latest asset managers to be linked with troubled group Gartmore, with rumours suggesting the pair have expressed an interest in acquiring a stake in the firm.

Gartmore has suffered almost £2bn of net outflows so far in 2010 as the firm continues to struggle following suspension and subsequent resignation of star manager Guillaume Rambourg.

Rumours are escalating in the City that fund manager Gartmore could be ripe for a takeover approach, as its share price languishes more than £1 below its December 2009 flotation price.

UK equity income fund managers have made a strong move into integrated energy company Centrica after shifting out of BP on the suspension of its dividend.