By SIMON MOORE 09/11/2010
Yesterday’s (8/11/10) 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 day to day fund management. Gartmore have put in place a process to ensure an orderly handover of Guy’s responsibilities and will combine the European Large Cap and All-Cap teams into a single European Equities Team. Guy will stay on as a consultant until May 2011.
Also leaving are 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.
Mindful of these significant developments the board of Gartmore European Investment Trust is reviewing its fund managerial relationships and consulting with shareholders.
We believe that with this management uncertainty there is considerable risk to the future performance of this investment trust. Following our strict investment process this has prompted us to remove our 3 star rating of this fund.
Rating suspended.