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'Gartmore's emerging market investments are more conservative'

14 Nov 2008

'Gartmore's emerging market investments are more conservative'
Gartmore, an asset management firm, has announced that the global financial crisis has led to its investment framework in emerging markets such as China becoming more conservative.

According to the company, global trading flows have slowed despite the severe disruption in international markets appearing to be easing.

The firm's 'top down' strategy means it has focused analysis on its global economic cycle, country risk, structural and quantitative features and use of sector research.

Chris Palmer, head of global emerging markets at Gartmore, said the firm's investment policy is heading towards companies with modest growth plans, steady cash flows and low debt burden.

He stated: "Cyclicality is slowly being replaced with 'predictability' across all our portfolios and analysts are being guided towards those companies that have demonstrated an ability to prosper in tough times in the past."

Meanwhile, findings from Gartmore from economic analysis taken in September revealed that the valuations of emerging market stocks were close to record lows during that period of 2008.
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