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Product category: Savings and investment
News Release from: Gartmore | Subject: Investment funds
Edited by the Insidemoneytalk Editorial Team on 07 January 2008

Gartmore News in Brief: AIM Stocks
"Compelling Value" says Gartmore's
Gervais Williams

AIM stocks have underperformed the FTSE Smaller Companies (excluding Investment Companies) Index over the past three years.

However, according to Gervais Williams, Gartmore's Head of UK Smaller Companies, many micro-cap stocks now represent compelling value "Some of the companies we research are trading at exceptionally low levels

It's not that they are just 30% or 50% undervalued.

In our opinion there are some cases where they are trading at entirely the wrong price," commented Gervais.

Gervais is distinctly cautious about the prospects for the UK economy and the stock market as a whole next year.

"The credit crunch is not easily solved and banks are likely to turn to the equity market for new funding.

I think that consumers will find it increasingly difficult to access borrowings so I expect weakness in housing, retailing and the leisure sector." Positively though, sterling is likely to weaken further and that will provide new opportunities for exporters.

Also, I expect to see more consolidation as companies seek to improve their businesses" Gervais, who manages the Gartmore UK and Irish Smaller Companies Fund and Gartmore Growth Opportunities plc, an investment trust, has shifted to a more defensive stance recently.

Cash levels have been increased and potentially illiquid stocks have been sold.

However, a substantial proportion of these funds are now invested in AIM-quoted companies.Gartmore Extends Special Offer until End of April: For the Gartmore Cautious Managed Fund and the Gartmore MultiManager range of Funds, for all lump sum investments, from advised sales only, now extended until 30 April 2008.

1% discount on the initial charge.

4% initial commission.

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