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Product category: Investment funds
News Release from: Gartmore | Subject: Corporate funds
Edited by the Insidemoneytalk Editorial Team on 19 May 2008

Gartmore's Bond Funds Raise Financial
Exposure

Karl Bergqwist and Simon Surtees,

Gartmore's co-heads of fixed income and managers of the Gartmore Corporate Bond Fund and Gartmore High Yield Corporate Bond Fund believe the worst may be over for the financials sector and have been adding to their positions in the bonds of a number of banks and other financial institutions "We have become increasingly positive about financials following the sharp falls of January and February and consider the rescue of Bear Stearns by JP Morgan in March to have been a pivotal moment in the bank sector's rehabilitation," say Karl and Simon

Banks worldwide have been rebuilding their balance sheets following substantial credit-related losses.

Gartmore's fixed income managers note a marked improvement in investor sentiment and an attendant reawakening of the new issues market.

A heavy new supply of investment grade paper has been absorbed readily by investors.

"Banks and other financial institutions were the first victims of the credit crisis and the indications are that they will be the first to emerge.

Losses arising from the credit crisis are now being flushed through the financial system." During this market renaissance, over the past month both Gartmore's bond funds have performed well, with longer dated paper held in the financials sector contributing strongly to performance.

The Gartmore High Yield Corporate Bond Fund, in particular, has built upon its strong track record, the Fund ranking in the first quartile of its peer group over 6 months and 1, 2, 3, and 4 years [1].

Gartmore's Charlie Awdry Live Video Webcast: Gartmore's Charlie Awdry will be giving a live video webcast on Thursday 22 May at 3pm.

Charlie will give his outlook for the Chinese economy and discuss the current macro-economic issues.

Charlie will also present the Gartmore China Opportunities Fund recent performance and current portfolio structure.

To register and watch the live interview go to http://www.asset.tv/online/?gartmore.

1; Source: Lipper.

Basis; mid to mid net income re-invested and net of fees as at 30/04/08.

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