Paul Hondros, currently expanding US-based Nationwide Mutual's investment operations at a rate of knots, has persuaded his firm to pay a staggering £1.03bn (E1.7bn) for Gartmore.

'That is pounds, not dollars?' asked one rival fund manager, askance at the price. He noted that a large part of Gartmore's £53bn in assets comprise low-fee passive funds: Gartmore was bought for £470m by NatWest in 1996.