Gartmore’s Burvill stays cautious

Last week’s downbeat statement from Caterpillar of the US and comments made by G7 finance ministers at the weekend suggest that, for some at least, the ramifications of the summer’s credit crisis is set to rumble on. Chris Burvill, Head of UK Equity Income and manager of the Gartmore Cautious Managed Fund, believes that we have seen the end of the “era of easy credit” and that investors may be facing a further period of market unrest.

“Even if we see no further Northern Rock-type problems with banks and other mortgage lenders, we are not going back to where we were in terms of the availability of credit. This poses important questions about how well the economy can perform in 2008 and whether or not the stock market rally in September really takes account of an increase in economic risk. Currently, there is a ‘don’t look down’ air about markets which doesn’t look sustainable.”

Gartmore’s £592mn Cautious Managed Fund, as at 30 September 2007, run by Chris, positions itself accordingly in line with market conditions with the aim of capitalising at such time. According to Chris, it makes more sense than ever to home in on those investments where there is real latent value, where companies have valuable assets or where growing earnings and dividends are not sufficiently appreciated by investors.