Gartmore News in Brief

Large caps take centre stage in 2008

European mid caps outperformed large caps from 2000 to 2006 in part due to exposure to Europe's economic recovery.

While traditional investors explored alternative investment strategies such as commodities and hedge funds, liquid large caps were being sold to fund this alternative trade.

De-equitisation, through private equity deals and corporate M and A also supported the mid-cap trade.

However, this began to reverse in the second half of 2007 according to Roger Guy manager of the Gartmore European Investment Trust p.l.c.

and co-manager with Guillaume Rambourg of the Gartmore European Selected Opportunities Fund and the SICAV Continental European Fund.

They believe large caps will likely drive performance this year following a flight to quality, precipitated by the recent market dislocation.Both the European Selected Opportunities Fund and the SICAV Continental European Fund are strategically positioned to reap the benefits of a number of defensive, largely undervalued large cap stocks which typically prove more resilient during unsettling periods.

Exposure to international growth, not within the reach of small or mid-caps, compelling valuations (large caps on average trade at a 10% to small caps), higher liquidity and visibility, stronger balance sheets and possible resurgence in M and A activity in 2008 also provide a very supportive backdrop to large caps.

Stocks including steel maker Arcelor Mittal, engineering company Siemens and food producer Nestle feature among the predominately large cap portfolios of Roger and Guillaume, contributing positively to the Funds' performance over the 4th quarter 2007.

"European large-cap companies offer both compelling valuation and liquidity while mid-caps have kept their valuation premium.

Large caps tend to outperform in volatile conditions by virtue of their greater resilience to market shocks.

Exposure to emerging markets, an accommodative US monetary policy and resurgence in M and A activity in 2008 should continue to support this sector." Gartmore Sub-adviser to Give State-of-the-Nation View on the US Market: As part of the Gartmore On Call programme of events, Cory Gilchrist, manager of the Gartmore US Opportunities Fund will be presenting on the Fund on 17 January 2008 at 3pm (GMT).

The link for the event is www.asset.tv/prereg/?gartmore, with registration required before close of business on 16 January in order to participate in this event.

The interview with Marsico Capital Management's Cory aims to provide an overview of recent fund activity and his outlook on the US market.

With increasing news coverage devoted to the probability of a US recession, Cory will offer his insights on the subject and why he currently believes that a recession is unlikely based on existing indicators.

While acknowledging that 'the US economy is slowing' Cory will discuss Marsico's deep, fundamental research on the subject and the firm's latest views.The £254m Gartmore US Opportunities Fund is a multi-cap US fund, investing in large, medium and smaller companies, with the aim of generating long-term growth of capital.

Following an extensive review of Gartmore's US capabilities, Marsico was appointed sub-adviser to the Fund on 29 June 2007.

These changes were made to ensure the efficient management of the Fund, using Marsico's time-tested investment process.

New Year Special Offers: 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.

Back to top