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Gartmore has relaunched its fund of funds, allowing it to invest in funds managed by other investment houses.
The arrival of Bambos Hambi and the rest of the multi-manager team in November last year prompted the decision to rename the existing fund and change its remit. The new fund, Gartmore Portfolio: Balanced Strategy, will hold a core of lower-risk funds and will boost the return from these by including some riskier satellite funds. In terms of asset allocation, the team will draw on the experience of Pete Gale, Gartmore’s head of private equity. Gartmore funds will not be selected, as the team wants to promote completely impartial decision-making.
When selecting funds for the portfolio, the team will assess the strengths and weaknesses of each fund to help them blend the funds together into a suitable portfolio that will match the aim of the fund of funds.
The funds are assessed on performance and through qualitative research methods, such as meetings with fund managers. Like all funds of funds, Gartmore’s has an element of double charging. However, multi-managers can negotiate discounts on these fees , so the extra cost may not be significant.