Ratings agency OBSR has upgraded Gartmore's Emerging Markets Opportunities fund from A to AA.
The agency says the fund is run with a “solid and clearly articulated investment philosophy’ and has confidence in fund manager Chris Palmer, for whom assets under management have more than doubled to $7bn since June last year.
OBSR notes the fund can be managed quite aggressively, but recognises that this is counterbalanced by “a sophisticated portfolio construction and risk management process”.
The process includes assessing the risk impact and liquidity implications of individual positions using dedicated software.
The fund typically contains a relatively small number of holdings, between seventy and ninety in number, and is characterised by low turnover.
“Your hit ratio can never be 100%,” Chris says. “You must be prepared to walk away from a bad idea and learn from it.
“But we also want to take calculated risks. There should be 10 to 15 stocks which are riskier. If you don’t, you’re probably not pushing hard enough.”
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