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Product category: Investment funds
News Release from: Gartmore | Subject: Investments
Edited by the Insidemoneytalk Editorial Team on 20 August 2007

Gartmore News in Brief

Don't overlook Cisco in search for 'new Google', says Gartmore

Amid recent share falls, there has been at least one bright spot recently Wall Street's most eagerly awaited technology flotation since Google's listing in 2004 more than met investor expectations, with shares in software company VMware leaping 86% on their 14th August debut

There are market expectations that VMware, a pioneer in 'virtualisation technology,' could be the 'new Google.' However, more established technology companies, such as computer network equipment maker Cisco Systems, should not be overlooked, according to Neil Rogan, Manager of the Gartmore Global Focus Fund and the Gartmore SICAV Global Focus Fund.

Cisco, which last month bought six million shares in VMware from parent EMC, has its own merits, commented Neil.

Earlier this month, Cisco announced a 25% jump in quarterly profits and raised its revenue forecast for the year.

San Jose-based Cisco is benefiting from strong industry fundamentals, in particular technology spending by large corporations.

The company is also tapping into infrastructure spending driven, in particular, by booming telecommunications traffic, both fixed line and mobile.

Cisco is held by both the Gartmore Global Focus Fund and the Gartmore SICAV Global Focus Fund.

Perhaps in the current climate, technology companies also have a particular appeal - they don't sell mortgages.

Arcelor Mittal - Strength in steel In October 2005, Roger Guy and Guillaume Rambourg, co Managers of Gartmore's £2 billion European Selected Opportunities Fund raised their exposure to the French steel-maker Arcelor.

The Funds have benefited from this decision ever since.

When Mittal Steel Co acquired Arcelor in August last year the world's largest steelmaker by sales was created, one three times larger than its nearest rival.

The new group was viewed as very compelling by Gartmore's European analysts and investment was again raised shortly after the merger.

"Capturing 10% of the steel market and targeting the fastest growing and most populous developing economies, Arcelor Mittal is perfectly placed to take advantage of the current infrastructure boom and is in our opinion the best steel stock to be invested in at this point in time", according to Guy and Rambourg.

Consolidation in the steel industry has credited regional steel providers with enough power to keep prices high and enforce long term contracts with their clients.

A symbiotic relationship has also emerged between the producer and the buyer allowing steelmakers such as Arcelor Mittal to operate according to client demand, thereby avoiding excess or insufficient capacity.

The Gartmore European Selected Opportunities Fund is rated AAA by Standard and Poor's.

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 30th September 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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