Gartmore is flagging European and US exposure by discounting the initial charges of two funds which ...
Gartmore is flagging European and US exposure by discounting the initial charges of two funds which invest in these regions.
The fund manager is deducting 2% off the initial charge of its Gartmore European Selected Opportunities Fund and the Gartmore American Growth Fund, for an eight week period, starting November 4.
Gartmore maintains European equities are on historically low P/E valuations relative to their own history. "The European Central Bank is taking exceptional measures to stimulate economic activity and boost business and consumer confidence by reducing interest rates to 3.25% and it is beginning to have the desired effect, while inflation remains benign at under 2.5%," the company notes.
US equities "now represent a golden buying opportunity" the company adds.
"After a shaky spell earlier this year, the economy is showing fresh signs of life. Profits at America's biggest firms are beginning to increase again and interest rates are at levels not seen since the 1960s. We believe these factors will help increase investors' confidence in American businesses which will allow their stock prices to build on the recent upward momentum we have seen".
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