The integration of Gartmore – the troubled fund management firm acquired by fund management group Henderson earlier this year – is almost complete. Gartmore staff have now moved to Henderson’s offices and are operating using the group’s systems and processes.

Henderson’s assets under management fell by £1.2 billion ($2 billion) over the quarter to 31 March 2011 to £60.5 billion, as it transferred £1.5 billion of cash funds to DB Advisors, the group announced in its interim management report. This was not unexpected – the company announced the transfer, a result of the Henderson Liquid Asset Fund merger with the Deutsche Managed Sterling Fund, when it published its full year results in February.

Henderson also announced it has paid off Gartmore’s obligations - a debt of £246.5 million - resulting in a gross debt position of the combined group of approximately £290 million. It also cancelled £147.7 million  of Gartmore’s £200 million multicurrency term facilities.

The firm said net inflows into retail funds were £319 million and into absolute return funds were £174 million. Favourable market and currency movements of £406 million were partially offset by net outflows of £100 million.

Henderson also reported its overall investment performance across asset class and product type. Over the past year, 67 per cent of equity funds and 74 per cent of fixed income funds outperformed, rising to 68 per cent and 77 per cent respectively over three years.  

"We had good net inflows into our absolute return funds and in our retail funds, including a notable increase in our UK retail fund range," said Andrew Formica, Henderson Group's chief executive, in a statement. “Our goals for the remainder of this year are to continue delivering strong investment performance for all our clients, completing the integration of the Gartmore business and capitalising on the strengths of the combined group."