Gartmore News in Brief

Market Turmoil Presents Challenges and Opportunities

'May you live in interesting times' is an oft-quoted Chinese proverb of uncertain provenance that could be easily applied to the recent market turmoil that originated in China.

Supposed triggers for the recent decline included the capital gains tax proposal in China, comments about a recession by former US Federal Chairman Alan Greenspan, weak numbers for durable orders in the US and the potential threat from the unwinding of the yen carry trade.

The coming together of these events arguably caused them to have a greater impact than they might have had in isolation.

"The possibility of a sudden downdraft remains with us.

What has not changed is that economic growth appears to be intact - we had better confidence numbers out of Europe recently - and earnings continue to be robust," according to Neil Rogan, Head of Global Equities and Manager of the Gartmore Global Focus Fund and Gartmore SICAV Global Focus Fund.

"The Gartmore Global Focus Fund has shown it can outperform in down markets as well as in up markets, and, if there were a marked recurrence of the latest jitters, we would expect a similar outcome.

In the recent market declines, two of our tactical positions fell through their stop and, being true to our process and sell discipline, we sold them, as the stories had not improved.

The stocks in question were TNT and Freeport-McMoRan.

The cash raised was re-invested in some strategic holdings - Telstra, Apple and Phillips.

As stock pickers, we will continue to search for great ideas that are now somewhat cheaper." Gartmore SICAV Latin American Fund receives Lipper Award The Lipper Fund Awards are in full swing and at a recent event held in Milan, the Lipper Fund Awards Italy 2007, the Gartmore SICAV Latin American Fund (EUR B), managed by Chris Palmer, was awarded 'Best Fund over past Five Years' in the Equity Emerging Markets Latin America category.

The Lipper Fund program highlights funds that have excelled in delivering consistently strong risk-adjusted performance, relative to peers.

The Gartmore SICAV Latin American Fund focuses on investing in Latin American equities which we believe have potential for unexpected earnings with country and stock selection the two key factors.

The Fund has an impressive short-term and long-term performance record.

It is ranked 1st quartile over 1, 2, 4 and 5 years and since its launch*.

China Wobbles but Fundamentals Remain Unchanged "Where next for China? The world's fourth-largest economy has been the focus of attention after a period of equity market volatility at the end of February.

Although Chinese equities have pulled back recently, along with other markets, in essence, the fundamentals remain unchanged," according to Charlie Awdry, Manager of the Gartmore China Opportunities Fund.

"Also, valuations have improved somewhat.

"The secular story for this developing socialist market economy remains intact.

It is worth reminding ourselves that the economy has grown by more than 10% for the past four years.

Moreover, the government continues to address liquidity issues.

The National Development and Reform Commission expects 'steady and fast' growth in 2007, notwithstanding some structural problems, including land-price inflation.

With corporate investment increasing, and domestic consumption on the rise, we anticipate robust profit growth in the corporate reporting season." Current Offers New investors into the company's investment trust ISA, the Gartmore ISAit, for the duration of the 2007 ISA season.

Initial fee of 3% will be removed from all new investments in Gartmore's investment trust ISAit and PEPit schemes Lump sum and minimum transfer value will be reduced from GBP3,000 to GBP1,000 Minimum amount for the monthly savings on ISA it will be reduced from GBP100 to GBP50 Gartmore, rather than the underlying investor, will bear the cost of commission to IFAs.

For the Gartmore Cautious Managed Fund and the Gartmore MultiManager range of Funds, for all lump sum investments until 30 April 2007 1% discount on the initial charge 4% initial commission Ends *Source: Lipper.

Basis: Mid to mid, gross income reinvested and net of fees in euros.

As at 23rd February 2007.

Over 5 years, the Fund achieved 26.9% against the Lipper IMA UK OS EQ Latin America Sector which achieved 21.9% over the same period.

The Gartmore SICAV Latin American Fund was launched on 29th October 2004.

The assets of the Gartmore Capital Strategy ("GCSF") Latin America Fund were amalgamated with the assets of the Gartmore SICAV Latin American Fund on 24th March 2005.

The past performance shown for the Gartmore SICAV Latin American Fund prior to 24th March 2005 is the past performance of the GCSF Latin America Fund.

After 24th March 2005 the past performance appearing as that of the Gartmore SICAV Latin American Fund will be the past performance of the accumulated assets of the Gartmore SICAV Latin American Fund which will include the assets previously invested in the GCSF Latin America Fund.

Due to this amalgamation, performance figures obtained from sources other than Gartmore may vary from those stated above.

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