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Investors still nervous about Gartmore | Trustnet Skip to the content

Investors still nervous about Gartmore

17 January 2011

According to the latest Trustnet poll, over half of the respondents would still not invest in Gartmore vehicles despite the recent takeover by Henderson.

By Lora Coventry,

Analyst, Financial Express

Investors are still nervous about investing into vehicles run by Gartmore, despite its future looking more assured following a takeover bid from Henderson, a Trustnet poll suggests.

The two fund houses announced a £335.3m takeover deal last week, valuing Gartmore at around 92.1p per share.

The takeover follows a year of turmoil for the beleaguered company; the group floated just over a year ago at 220p per share, before seeing star managers Roger Guy and Guillaume Rambourg leave.

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Source: Trustnet. Poll conducted 12-14 January 2010. Respondents numbered 228

But research from Trustnet suggests investors will not be so easily placated. When asked whether they were more inclined to invest in a Gartmore fund now that its future is more secure, more than half of respondents answered "no".

Under the deal, Gartmore's funds will be renamed to take on Henderson's title, but IFAs say Gartmore's reputation will linger.

"You can understand why there is still a reticence to Gartmore funds. There needs to be clarity on amalgamation – until things are settled you can't be 100 per cent assured of the future of the fund you're buying,"

Rowan's head of research Tim Cockerill said. Data from Financial Express shows Gartmore have 31 funds in the IMA UT & OEIC universe, the largest of which is the £1.5bn Gartmore European Selected Opportunities fund run by John Bennett, who took over from Guy and has a 3.18 per cent stake in Gartmore.

He is one of 12 managers who have given the takeover his support. In the past year, Charlie Awdry's Gartmore China Opportunities has returned over 20 per cent to investors, according to Financial Express data.

Performance over 1-yr

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Source: Financial Express Analytics

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Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.