Gartmore revamps its MultiManager range

Gartmore has made several changes to its MultiManager Fund range. Launched 18 months ago, the range will have its structure altered, its names changed and an amendment in frequency to one of the funds payments.

Four of the group’s MultiManager funds will be converted to a non-Ucits retail scheme (Nurs) as of June 9, 2006, with the exception of the Cautious fund, which is already set up as a Nurs. Under the Financial Services Authority’s new collective investment rulebook, Coll, all funds have to convert to either Nurs or Ucits III by February next year.

Bambos Hambi, fund of funds manager at Gartmore, says the Nurs structure allows extra flexibility and more investment choice. “If we are defensive, it allows us to have more cash” he says. “It also allows certain investment funds that both the old Ucits scheme and Ucits III do not allow, such as commercial property.”

“Ucits III is useful if you are marketing to Europe, but our clients are UK-centric” says Hambi. “Also, under Ucits III you are limited to owning a maximum of 10% of any fund. With Nurs we have greater flexibility regarding ownership of funds we like.”

Gartmore has also changed the names of its funds to stress the multi-manager aspect. This change was developed through client feedback, says Hambi, which began in 2003 when the team first joined Gartmore. “We spent quite a while talking to IFAs,” he explains. “We asked them, ‘What is it your investors want?’. We did a lot of research and kept in touch with the IFAs and we asked them if we were meeting their requirements?”

What they asked for, says Hambi, is more clarity, so as to reflect that the funds are actually multi-manager. “Changing the names does this,” he adds.

Also, from the feedback Hambi and his team got, he says it became clear that their Cautious fund clients wanted quarterly payments rather than bi-annual, so it was changed.

“Both of these changes have been driven by demand from our client base,” he says. “We want to be known as a group that listens to what the marketplace wants.”