Gartmore European Selected Opportunities favours German stocks

Roger Guy and Guillaume Rambourg, co managers of Gartmore’ s European Selected Opportunities Fund and Gartmore SICAV Continental European Fund are optimistic in their outlook for Europe citing positive growth momentum in Germany.

Both Funds are overweight relative to the benchmark in German stocks.

The Funds have outperformed the index and sector average in the three months to end of September.

“Although we have seen some empirical indications of a slowdown in the German economy, the job market in Germany has remained robust in the face of the market dislocation and rising energy prices, with unemployment continuing to decline in September”, say Roger and Guillaume.

Germany’s unemployment rate dropped more than economists forecast to 8.8% from 8.9% in August and its labour force continued to rise in September. With further demand for German products both at home and abroad, companies in Germany are seeking to boost recruitment in sectors such as car manufacturing and industrial goods. German car exports have risen in the eight months through August by 11% from the same period in 2006. Germany’s BMW recently re-organised its management structure and revealed new sales and profit targets. Roger and Guillaume introduced the car manufacturer as a new holding to both the Gartmore European Selected Opportunities and the Gartmore SICAV Continental European Fund at the start of August.