Gartmore plans to bolster its sparse fund of funds range later this year with up to five new core and high-alpha portfolios as it bids to break the hegemony of the major multi-managers.
Despite recruiting Bambos Hambi and team last year, Gartmore still only offers one Fof, its £360m portfolio balanced strategy fund, which manager Marcus Brookes says is “not all things to all people”.
The new portfolios, due to be rolled out in the coming months, will plug gaps in core areas, giving Hambi and his team scope to seek higher returns with less benchmark-oriented funds.
The core proposition is likely to be fleshed out with two funds, one seeking income and the other growth. Unlike the balanced fund, which has minimum cash and fixed-interest weightings, at least one of the new portfolios is expected to be fully invested in equities.
Gartmore also plans to offer high-alpha funds as Brookes says the group is in need of riskier products to generate strong outperformance. With its IFA research only just completed, however, he says no further details are available, with the number of launches still under discussion.
Brookes says: “Stockmarkets could be fairly dull and to generate outperformance, you need to take active risks. We need something different. We will also be filling out the core end with different options.”