Gartmore investors face prospect of dilution levy

Gartmore has the ability to apply a dilution levy to investors looking to withdraw assets from its range of European funds on the back of the suspension of Guillaume Rambourg.

The group implemented a dilution levy on its European Absolute Return fund from 28 February, at the director’s discretion, on individual purchases or sales greater than 5% of the fund’s NAV. The same threshold applied for Gartmore’s other European funds – European Focus and Selected Opportunities funds. The dilution levy rates are 0.05% for selling, and 0.08% for buying Absolute Return, 0.13% for selling and 0.21% for buying European Focus, and 0.13% for selling and 0.19% for buying European Selected Opportunities. A Gartmore spokesman said: “The funds are large cap and have no liq...