Gartmore’s Roger Guy and Guillaume Rambourg have delivered returns of more than 10% since launching the European Absolute Return fund a year ago.
The £342.1m fund has returned 10.3% over the past 12 months, in line with the IMA Absolute Return sector average.
Guy and Rambourg have taken 32 long positions and seven short, with Sanofi-Avenits (3.3%), France Telecom (3.2%) and ENI (2.6%) among its top five long holdings.
The vehicle has a volatility of 4%, which Gartmore says is less than one fifth of those from market returns when compared with the FTSE All Share.
Its average gain and average loss figures are +0.12% per day and -0.08% per day respectively, with maximum daily gain during the period at +0.7% and a maximum daily loss of -0.7%.
Gartmore head of UK retail Richard Pursglove says: “We believe an absolute return fund should aim to deliver low, but meaningful, average daily gains with similarly low numbers for average daily losses. Investors should also expect low maximum daily gains and low maximum daily losses as absolute return funds look to reduce equity-like risks.
“When investors are considering an absolute return fund for their portfolio, it is crucial 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.
“Clearly these types of funds continue to be recognised as an effective diversifier in multi-asset portfolios.”
