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Product category: Investment funds
News Release from: Gartmore | Subject: Investments
Edited by the Insidemoneytalk Editorial Team on 22 October 2007

BP restructuring highlights latent value
in "Mega-Caps"

BP shares surged last week after the oil giant said that it has initiated a major restructuring in order to simplify its organisation.

BP performed poorly in 2006, undermined by concerns about project delays, industrial accidents, refinery shutdowns and pipeline leaks A hugely complex structure appeared to hinder the resolving of such issues, so plans to split the company into two distinct divisions with fewer layers of management is being seen as a positive development

Chris Burvill, Gartmore's Head of UK Equity Income and manager of the Gartmore Cautious Managed Fund, says, "This is the sort of thing we look for".

"One of the things we seek to do is to invest where there is real scope for a company to increase shareholder value via restructuring or a break up." According to Chris, this could apply to a number of other companies represented in the Fund's equity portfolio, including AstraZeneca and GlaxoSmithKline in the pharmaceuticals sector, and the engineering group, Invensys.

"The big pharmaceuticals have been out of favour for some time but now look attractive trading on very low valuations that appear not to discount any improvement," says Chris.

Gartmore's Cautious Managed Fund is overweight "mega-caps" relative to its benchmark', for example Aviva, BP, Royal Dutch Shell and GlaxoSmithKline among others.

Through the summer, Chris increased the Fund's exposure to blue chips at the expense of mid-cap stocks and cut the Fund's financials exposure to underweight.

Chris ends by saying that, "we've worked hard to create a strategy that has the potential to protect investors' funds on the downside".

"We've been concerned about credit, the financial system and the valuation of some parts of the market".

"We've been right to be concerned".

Gartmore Backs Russian Growth Russia's benchmark RTS equity index reached record levels this week, in another intense week of trading in emerging market assets.

Gartmore's Emerging Markets Funds were overweight relative to the benchmark MSCI Emerging Markets Index in Russian stocks during the third quarter.

This strategy generated positive returns but is not in line with the consensus view held by other fund managers.

Chris Palmer, Head of Global Emerging Markets at Gartmore highlights positions in the consumer discretionary and wireless telecommunications sectors".

""We believe that the combination of rising real incomes and greater access to the formal banking sector will drive consumer stocks higher".

"Russians are spending more on retail in sectors as diverse as autos and mobile telephones, while access to personal credit is also improving." The average monthly wage in Russia has increased fourfold since President Putin came to power in 2000.

This increase, made possible in Russia by nine consecutive years of economic growth, is fuelling a consumer boom that is changing the spending habits of a generation.

On the high street, it has led to sharp increases in the purchases of products such as mobile phones, cars and televisions.

Gartmore's Emerging Markets Funds have returned in excess of 10% for investors in the last three months, and more than 52% in the year to end of September.

They outperformed the benchmark index and the Lipper Global Emerging Markets Sector Average in both timeframes.

Gartmore Extends Special Offer until End of Year For the Gartmore Cautious Managed Fund, the Gartmore Global Focus Fund and the Gartmore MultiManager range of Funds, for all lump sum investments, from advised sales only, now extended until 31 December 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 ' Benchmark: 50% FTSE All Share 50%, Merrill Lynch GBP Non Gilt Index Source: Lipper.

Basis: Mid to mid, gross income reinvested and net of fees in Euros at 30.09.07.

Performance for Gartmore SICAV Emerging Markets Fund relates to the A Class shares.

The Gartmore SICAV Emerging Markets Fund was launched on 29th September 2000.

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

The past performance of the GCSF Emerging Markets Fund.

After 24th March 2005 the past performance appearing as that of the Gartmore SICAV Emerging Markets Fund will be past performance of the accumulated assets of the Gartmore SICAV Emerging Markets Fund.

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

- Ends - Media Enquiries: Kimberley Robinson Head of Media and Public Relations 020 7782 2439 Gartmore Press Office 020 7782 2447 / pressteam@gartmore.com Notes to Editors: For media use only.

Not to be circulated to private investors.

Gartmore Gartmore is a multi-product asset management firm that provides investment management products and services to retail and institutional investors in the UK, Continental Europe, the US, Japan and Chile.

As at 30th June 2007, Gartmore managed over ?25bn in assets under management.

Headquartered in London, Gartmore also has offices in Boston, Frankfurt, Madrid and Tokyo.

The company is owned by Hellman and Friedman LLC, and Gartmore's Senior Fund Managers and Executives.

Hellman and Friedman Hellman and Friedman LLC is a leading private equity investment firm focused on investing in superior business franchises and as a value-added partner to management in select industries including financial services, professional services, software and information, media and energy.

Since its founding in 1984, the Firm has raised and, through its affiliated funds, managed over US$8 billion of committed capital.

The Firm has offices in San Francisco, New York and London.

Hand F has a proven track record of investing and assisting management teams of companies in the global asset management, financial services and professional services industries.

Representative investments include: Artisan Partners, Mondrian Investment Partners, Axa Re, LPL Financial Services, Franklin Resources (BEN), Inc, The Nasdaq Stock Market (NDAQ), Brinson Partners and Arch Capital Group (AGGL).

For more information, visit http://www.hf.com/.

Important Information This document was issued as at the date displayed in the band at the top of this press release.

Risk and performance can change over time.

Past performance is not a guide to future performance.

Up-to-date information can be obtained on the internet at the Gartmore website: www.gartmore.co.uk or by calling your usual Gartmore contact.

Gartmore is unable to offer personal financial advice.

All opinions are correct as of the date of this release and are subject to change without notice.

Please note that nothing in this document should be interpreted as financial advice.

This document is issued by Gartmore Investment Limited (GIL).

Gartmore's OEICs are managed by Gartmore Fund Managers Limited (GFM).

Both GIL and GFM are authorised and regulated by the Financial Services Authority.

Gartmore's registered address is Gartmore House, 8 Fenchurch Place, London EC3M 4PB.

Telephone calls may be recorded for monitoring and training purposes.

Gartmore Cautious Managed Fund This Fund invests in a combination of bonds and shares.

The Fund performance and value is more volatile than a fund investing solely in cash or bonds, but less volatile than one investing in shares alone, although you should bear in mind that the value of all investments can go down as well as up.

The yield generated is subject to fluctuation and it is not guaranteed and as this fund invests in high yielding bonds, there is an increased risk of capital erosion, through default or if the redemption yield is below the running yield.

In addition, economic conditions and changes in interest rates can affect the values of high yielding bonds.

Changes in exchange rates may also cause the value of investments to fall or rise.

Currently, the annual management charge is taken from the capital of the Fund, which will increase the yield, but restrict the potential for capital growth.

Gartmore Emerging Market Opportunities Fund This Fund invests in shares, which are more volatile than other investments such as cash or bonds, although you should bear in mind that the value of all investments can go down as well as up.

This Fund invests in emerging markets, which tend to be more volatile than more established stockmarkets and therefore your money is at greater risk.

As this Fund invests globally, changes in exchange rates may cause the value of investments to fall or rise.

18 October 2007.

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