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Investment funds
News Release from: Gartmore | Subject: Investments
Edited by the Insidemoneytalk Editorial
Team on 04 June 2007
Gartmore news in brief
Chinese Tax on Securities Raised to 0.3%
Shanghai stocks are trading lower today after the announcement that the stamp duty on securities transactions will be raised from 0.1% to 0.3% The Finance Ministry justified the increase as necessary to 'promote the healthy development of the securities market'
This article was originally published on Insidemoneytalk on 19 Apr 2007 at 8.00am (UK)
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Gartmore news in brief
Charlie Awdry Comments on the Chinese Economy
The domestic share market has more than doubled in value in the last twelve months, and 22 million share accounts have been opened by domestic investors this year alone.
Charlie Awdry, manager of the Gartmore China Opportunities Fund, sees this as a small move, part of the government's broader desire to regulate the domestic share market, and temper retail investors' enthusiasm.
Measures designed to calm the market include the issuing of risk warning memoranda on the dangers of trading on non-fundamental factors, and a 27 basis point increase in the one-year lending rate, made earlier this month.
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The amount that qualified domestic investors (QDIIs) can invest in equities outside China has also been increased.
Charlie says, "At present just over 25% of domestic financial wealth is held in shares, a low figure compared with the regional average".
"We do not believe that the share price realignment will derail the economy, which expanded at 11.4% in the first quarter".
"Poor quality of the stocks caught up in the most recent market rally indicates a frothy market." The Gartmore China Opportunities Fund is currently rated as the top performing Fund over 1, 3 and 5 years among its peers'.
The majority of its exposure is via the Hong Kong-based 'H' share market, and other cheaper markets.
It has no direct exposure to the highly valued Shanghai 'A' share market, now trading at 31 times forward earnings.
'Source: Lipper.
Basis: Mid to mid, net income reinvested and net of fees in UK sterling terms.
As at 30th April 2007 German Business Climate remains positive As the best performer among Europe's eight biggest markets in 2007 so far, the economic outlook in Germany is promising.
Munich-based research institute, the IFO, recently reported that the German business climate remains favourable, after their sentiment index reached 108.6 this month, its second highest level since reunification.
The IFO's survey is based on responses from 7,000 companies covering a broad spectrum of industries.
2006 saw the eurozone grow as a whole, with Germany playing a pivotal role.
As a result of robust export growth and improved competitiveness fostering strong investment, this looks set to continue.
Both DaimlerChrysler and Siemens, stocks held in both the Gartmore European Selected Opportunities Fund and SICAV Continental European Fund run by Roger Guy and Guillaume Rambourg, reported significant first and second quarter profits respectively".
""In spite of concerns of a slowdown in the US economy a combination of factors are contributing to the continued recovery of the German economy".
"Growing investor confidence, an increase in corporate spending on goods such as factory machinery as well as a drop in unemployment, hitting a six year low of 9.2%, are all key points".
"Indeed the country appears to have overcome the drop in consumer spending, which was a result of the sales-tax hike at the beginning of the year".
Special Offers: For the Gartmore Cautious Managed Fund, the Gartmore Global Focus Fund and the Gartmore MultiManager range of Funds, for all lump sum investments until 30 June 2007.
1% discount on the initial charge, 4% initial commission.
No Initial Charge on Investment Trust Schemes: New investments into the company's investment trust ISAit, PEPit and SAVEit schemes; No initial charge for new investments, £1,000 lump sum and minimum transfer value, £50 minimum amount for monthly savings.
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