By ADRIAN LOWCOCK 11/11/2010
With the news that Fund Manager Roger Guy, along with their Chief Investment Officer will be leaving the group our analysts have been reviewing the ratings we have on Gartmore funds.
Gartmore European IT - Rating Suspended
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.
Alternative recommendation - Henderson Eurotrust
Gartmore European Absolute Return – Downgraded to 1 Star
The performance of this fund had already raised concerns within our research team, resulting in a downgrade to a hold. Following the announcement this week we have dropped this fund onto our sell list.
Alternative recommendation – Standard Life Global Absolute Return Strategies.
Gartmore European Selected Opportunities – Downgraded to 2 Stars, Hold
Although John Bennett is staying at Gartmore Bennett and has an excellent track record, the recent announcement that Roger Guy is departing does affect him, as he is taking over many of Guy’s responsibilities.
Alternative Recommendation – Schroder European Alpha Plus as a suitable alternative.
Gartmore UK Absolute Return – No change, remains 5*
Whilst there is obviously a lot going on within Gartmore, the majority of the disruption will be on the European side. We are confident that Ben Wallace will be able to manage this fund without being adversely affected by developments within the firm.