Gartmores stable growth fund is a unit trust aimed at investors who are looking for a low-risk investment. It has been designed for growth by investing in zero dividend preference shares from split capital investment trusts.
There are currently about 100 zero dividend preference share products on the market, and the Gartmore fund will invest in a broad spread of 35 of these, chosen from across the market. The fund can be used for Isas and is also available for Pep transfers.
Senior investment manager Richard Prvulovich will be managing the fund from Gartmores Glasgow branch. Prvulovich joined Gartmore in May 2000, and also manages the Gartmore Scotland-zero trust, the monthly income trust, the split capital opportunity trust and the absolute growth and income trust. Before this he worked for Investec Guinness Flight for eight years, where he managed the income share & capital unit trusts and the Archimedes and geared income & growth investment trusts.
The first half of 2001 has seen a great deal of volatility in the stockmarkets, which may encourage more cautious investors to hedge their bets by investing in a low risk fund of this type.
According to Standard & Poors the Gartmore Scotland-zero investment trust is ranked 61 out of 83 funds, based on £1,000 invested on a mid-to-mid basis with gross income reinvested over a one-year period to June 21, 2001.