European valuations remain compelling

John Bennett, Manager of the Gartmore European Selected Opportunities Fund, says that at the corporate level we are presented with no shortage of blue chip value in Europe.

"When we consider it in basic terms, our investment universe offers numerous globally leading franchises who happen to have their head offices and stock market quotes in a European country. Benefiting from long standing, firmly entrenched global presence these are companies which have vigorously pared their cost bases, their working capital requirements and who have become much leaner as a result".

John adds that crucially the stock prices of many such European companies trade at valuations which continue to make them compelling investments. And yet, as investors have been reminded in recent weeks, John continues, all of this can be overwhelmed by macroeconomic events. While the convulsions associated with this debt threat are currently being played out in Europe, the manager says that he would be enormously surprised if contagion were to be limited to this Continent.

"Fault lines exist elsewhere", says John. "Witness the indebtedness of the UK, USA and Japan".

It is against this backdrop that the Gartmore European Selected Opportunities Fund remains underweight banks, utilities and real estate. Overweight positions are held in technology, healthcare and consumer goods.

The Gartmore European Selected Opportunities Fund is AA rated by Standard and Poor's.