By ROBERT HARLEY 08/11/2010
Today’s news that three more senior investment professionals are leaving Gartmore is a body blow to the company and its brand. Most notable amongst these is Roger Guy, head of European Equity and an employee at Gartmore for the past 17 years, who is to retire from fund management. He is joined by Darrell O’Dea, a senior portfolio manager on the European Equity desk, who only joined in May 2010 as a replacement for Guillaume Rambourg. Finally, Dominic Rossi, Chief Investment Officer is also leaving as a severe cost cutting package is announced. At the beginning of September Gervais Williams, their UK Smaller Companies manager for the last 17 years, resigned and that was arguably the first sign that the troubles that have plagued the group over the Summer were still coming to a head.
The company has appointed Goldman Sachs to undertake an assessment of its strategic options, which it hopes to have concluded by May next year at the latest; additional equity has also been made available in an effort to retain and incentivise key staff members who remain.
Although John Bennett, the incumbent manager on the European Selected Opportunities Fund, remains in place, we believe this reorganisation may have a disruptive impact on the team. We have reduced our fund rating to a hold. Investors who are not prepared to wait could consider Schroder European Alpha Plus as a suitable alternative.