The new Gartmore Portfolio: cautious strategy fund will take advantage of the mixed asset class rules under the European Ucits III legislation.
The fund will invest in a range of UK equity income, UK bond and property funds as well as cash. It will be managed according to specific parameters set for each asset class. These bands enable the management team to shift the fund weightings to suit all market conditions, while still having some ground rules.
Like all the other funds in the range, this fund will be managed by Gartmore head of multi-manager Bambos Hambi and fund manager Marcus Brookes, with asset allocation provided by Gartmore Portfolio's head of asset allocation and head of private equity Peter Gale,
They will research both onshore and offshore markets, selecting the best performers using statistical screening, questionnaires and interviews with the investment teams of the underlying funds. They will look at what each fund is trying to achieve and why, how the funds are managed, past performance and price. The team then decides on the best combination of funds to meet the multi-manager fund's risk profile and objectives, ensuring diversity of region and asset class.
The Gartmore Portfolio: cautious strategy fund ensures that Gartmore has a relatively lower risk fund in its multi-manager range to sit just below the existing balanced strategy fund in the risk ratings.
However, none of the multi-manager funds can invest in Gartmore funds. While this will ensure impartiality and avoid conflicts of interest within the Gartmore group, it is not so good if a Gartmore fund happens to be a consistent performer which could enhance the multi-manager portfolio.
According to Standard & Poor's, the Gartmore Portfolio: balanced manager fund is ranked 56 out of 76 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to September 13, 2004.