Awdry hits one year anniversary

The 12th June 2007 marks the first anniversary of Charlie Awdry becoming fund manager of the Gartmore China Opportunities Fund.

The Fund has returned 61% in the period since Charlie took over to 1st June 2007.

This return is over 9 full percentage points better than that offered by the closest rival and well above the benchmark'.

The Gartmore China Opportunities Fund is the top performing Fund in the Lipper IMA Asia Pacific ex Japan Sector over one, three and five year timeframes'.

Charlie comments, " We are pleased with the returns generated for our investors and, more importantly, are confident that with our robust investment process and strong research team we have the tools in place to continue to generate attractive returns".

"With £388m under management, the fund is by some margin the largest UK-based China fund.

On the outlook for the future, Charlie Awdry states that, " The Chinese economy continues to grow robustly driven by the secular forces of economic reform, urbanisation, and the growth of consumerism".

"Corporate profit growth is strong and, with the Beijing 2008 Olympics around the corner, China will continue to be a focus of global attention".

"The authorities are currently managing the extremely strong liquidity in the economy that is caused by China's trade surplus and low real interest rates".

"Currently inflation is picking up but is under control and is mostly driven by rising food prices".

"We continue to find strong franchises at attractive valuations in China and Hong Kong.

Source for all performance data: Lipper.

Basis: Mid to mid, net income reinvested and net of fees in UK Sterling terms.

As at 1st June 2007, As at 31st May 2007, Source: Gartmore as at 31st May 2007.

UK Mining Sector Results from Vedanta Resources last week indicated that the demand for industrial metals remains strong and does not emanate just from China.

Vedanta, which operates predominantly in India, managed to more than double its EBITDA last year, to US$2.7 billion.

Vedanta's recent success is unsurprising when you consider its enviable track record of turning projects into profitable businesses and the fact that industrial production in the world's fastest-growing democratic country grew by an impressive 11.3% in the year ended 31st March.

Vedanta's results mirror the successes reported by other diversified mining giants.

Despite this, and the emergence of talk of a possible bid for Rio Tinto earlier this month, the UK mining sector continues to trade on an undemanding rating.

Vedanta, for example, trades on a multiple of just eight times this year's earnings.

According to Sacha Sadan, Senior Investment Manager, even after recent price gains, ratings in this sector appear too low, and will appear even more so if real bid activity materialises.

The risk is that China slows dramatically, but this possibility would appear to have been largely discounted by a sector trading around current levels.

Gartmore continues to hold a significantly overweight exposure to the mining sector in its Gartmore UK Focus Fund, and Gartmore UK Growth Fund.

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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