Gartmore European Absolute Return Fund posts double digit gain

The Gartmore European Absolute Return Fund (GEARF), managed by Roger Guy and Guillaume Rambourg, marked its first anniversary by posting a double digit gain. Launched on 31 January 2009, the Fund listed in the IMA Absolute Return sector, returned 10.3% against an uncertain economic backdrop during its first twelve months.

A number of important factors have characterised the Fund's successful first year in delivering consistent returns with low volatility:

Low Volatility - GEARF has a volatility of 4% in comparison to the FTSE All Share volatility of 21.3%, meaning the volatility of these returns is less than one fifth of the volatility of the market's returns

Maximum Drawdown - The biggest drop GEARF has experienced, from peak to bottom, is only 2.0%. The FTSE All Share has a maximum drawdown of 17.3% over the same period

Average Gain and Average Loss - We believe that an absolute return fund should aim to deliver low, but meaningful, average daily gains with similarly low numbers for average daily losses. GEARF's average gain and average loss figures are +0.12% per day and -0.08% per day respectively

Maximum Gain and Maximum Loss - Investors should also expect low maximum daily gains and low maximum daily losses as absolute return funds look to reduce equity-like risks. GEARF's maximum daily gain during the period is +0.7% and its maximum daily loss is -0.7%

Commenting, Richard Pursglove, Head of UK Retail at Gartmore, said: "When investors are considering an absolute return fund for their portfolio, it is crucial that they look to experienced managers who have a demonstrable track record of managing these types of funds in all market conditions with a proven ability to deliver true absolute returns."

He continued: "We are delighted with the progress Gartmore has made in the absolute return sector and clearly these types of funds continue to be recognised as an effective diversifier in multi-asset portfolios."