Gartmore Global Focus highlights bandwidth expansion

In the recent market turmoil, telecom stocks have held up relatively well. At its simplest, even if the economic situation worsens (not our contention), customers can be relied upon to keep talking by phone.

As such, telecoms – non-cyclical stocks with cash - can be argued to have certain defensive qualities. For the Gartmore Global Focus Fund and Gartmore SICAV Global Focus Fund, mobile and fixed broadband have emerged as key themes for its telecom and telecom-related holdings. Neil Rogan, Head of Global Equities at Gartmore Investment Management and manager of both funds, highlights the increasing demand for bandwidth, citing the observation that the bandwidth needed just to run YouTube in 2006 was equal to the entire US Internet load in 2000. “Since then, YouTube, Facebook, the iPhone and now Coronation Street on your mobile are taking demand to new levels,” commented Neil. Telecom holdings in both Funds include Nokia (recently revealed consensus-beating fourth-quarter profits), Telefónica and Vodafone. Each chosen for their respective merits are plays on the inexorable expansion of bandwidth.

The Gartmore Global Focus Fund, which celebrated its seventh anniversary at the end of January, returned 61% since inception in 2001 to end December 2007, a result that placed the Fund in the top decile. An Associate Member of the UK Society of Investment Professionals, Neil is rated AAA by Citywire. The Gartmore SICAV Global Focus Fund marked its third anniversary in October 2007.