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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number 811-0495

GARTMORE MUTUAL FUNDS

(Exact name of registrant as specified in charter)

1200 RIVER ROAD, SUITE 1000, CONSHOHOCKEN, PENNSYLVANIA 19428

(Address of principal executive offices)                     (Zip code)

ERIC E. MILLER, ESQ.
1200 RIVER ROAD
SUITE 1000
CONSHOHOCKEN, PA 19428
(Name and address of agent for service)

Registrant’s telephone number, including area code: (484) 530-1300

Date of fiscal year end: 10/31/2004

Date of reporting period: 10/31/2004

     Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

     A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

TABLE OF CONTENTS

	Item 1. Reports to Stockholders
	Item 2. Code of Ethics
	Item 3. Audit Committee Financial Expert
	Item 4. Principal Accountant Fees and Services
	Item 5. Audit Committee of Listed Registrants
	Item 6. Schedule of Investments
	Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
	Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
	Item 9. Submission of Matters to a Vote of Security Holders
	Item 10. Controls and Procedures
	Item 11. Exhibits
SIGNATURES
CODE OF ETHICS
CERTIFICATIONS
CERTIFICATIONS PURSUANT TO RULE 906

Item 1. Reports to Stockholders.

          Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).

Annual Report October 31, 2004 Sector Series Gartmore Global Financial Services Fund Gartmore Global Health Sciences Fund Gartmore Global Natural Resources Fund Gartmore Global Technology and Communications Fund Gartmore Global Utilities Fund Leadership Series
Gartmore Mid Cap Growth Leaders Fund (formerly “Gartmore Millennium Growth Fund”) Gartmore Nationwide Leaders Fund Gartmore U.S. Growth Leaders Fund Gartmore Worldwide Leaders Fund International Series Gartmore China Opportunities Fund Gartmore Emerging Markets Fund Gartmore International Growth Fund Concept Series Gartmore High Yield Bond Fund Gartmore Value Opportunities Fund Gartmore Micro Cap Equity Fund Gartmore U.S. Growth Leaders Long-Short Fund (formerly “Gartmore Long-Short Equity Plus Fund”) Gartmore Convertible Fund
Gartmore Small Cap Growth Fund www.gartmorefunds.com

Solutions.

UNITED STATES  |  UNITED KINGDOM  |  JAPAN

Based in greater metropolitan Philadelphia, Gartmore is the global asset management arm of Nationwide®. Gartmore’s affiliated advisers* collectively manage more than $77 billion¹ in assets through its global investment platform encompassing more than 185 investment management professionals supported by an 800-person staff.

We provide core and specialty equity, fixed-income and alternative investment solutions through mutual funds, separate accounts, commingled portfolios and wrap accounts to individual and institutional clients around the world.

This wide range of investment opportunities is built on sound investment management processes designed to increase the probability of delivering enhanced risk-adjusted returns over the long term.

Our investment management teams incorporate fundamental stock selection with the application of technology to help control risk and add to returns. Insightful stock selection is a function of the efforts of talented alpha-driven managers and analysts, working in an entrepreneurial environment, who are specialists in their respective investment disciplines.

www.gartmore.com

*Gartmore’s Affiliated Advisers
The following 10 asset management affiliates of Nationwide do business under the trade name “Gartmore Group”: Gartmore Capital Management Ltd², Gartmore Fund Managers Ltd², Gartmore Global Partners^{2, 3}, Gartmore Investment Ltd², Gartmore Japan Ltd², Gartmore Morley Capital Management, Inc.³, Gartmore Mutual Fund Capital Trust^{3, 4}, Gartmore SA Capital Trust^{3, 4}, Gartmore Separate Accounts LLC³, and NorthPointe Capital® LLC³

1.	As of Oct. 31, 2004.
2.	These advisers are subsidiaries of Gartmore Investment Management plc, which ultimately reports to Nationwide®.
3.	These are SEC-registered investment advisers based in the United States. Collectively, these advisers manage $40 billion as of Oct. 31, 2004.
4.	Together, these advisers do business as Gartmore Global Investments, Inc.

Gartmore Global Investments is the investment adviser to Gartmore Funds. NorthPointe Capital is a federally registered service mark of Gartmore Global Investments, Inc. Nationwide is a federally registered service mark of Nationwide Mutual Insurance Company.

Gartmore Funds distributed by Gartmore Distribution Services, Inc., Member NASD. 1200 River Road, Suite 1000, Conshohocken, PA 19428.

© 2004 Gartmore Global Investments, Inc. All rights reserved.

Annual Report

October 31, 2004

	Contents
2	Message to Shareholders
3	Market Perspectives
	Sector Series
9	Gartmore Global Financial Services Fund
15	Gartmore Global Health Sciences Fund
20	Gartmore Global Natural Resources Fund
25	Gartmore Global Technology and
	Communications Fund
31	Gartmore Global Utilities Fund
	Leadership Series
46	Gartmore Mid Cap Growth Leaders Fund
	(formerly “Gartmore Millennium Growth Fund”)
51	Gartmore Nationwide Leaders Fund
56	Gartmore U.S. Growth Leaders Fund
61	Gartmore Worldwide Leaders Fund
	International Series
75	Gartmore China Opportunities Fund
80	Gartmore Emerging Markets Fund
88	Gartmore International Growth Fund
	Concept Series
101	Gartmore High Yield Bond Fund
109	Gartmore Value Opportunities Fund
117	Gartmore Micro Cap Equity Fund
123	Gartmore U.S. Growth Leaders Long-Short Fund
	(formerly “Gartmore Long-Short Equity Plus Fund”)
131	Gartmore Convertible Fund
137	Gartmore Small Cap Growth Fund
155	Notes to Financial Statements

Commentary provided by Gartmore Global Investments, investment adviser to Gartmore Funds. All opinions and estimates included in this report constitute Gartmore Global Investments’ judgment as of the date of this report and are subject to change without notice.

Statement Regarding Availability of Quarterly Portfolio Schedule.
The Gartmore Funds file complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC, and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330; and the Funds make the information on Form N-Q available to shareholders on www.gartmorefunds.com or upon request without charge.

Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30, 2004 is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.

Dear Fellow Shareholders,

Gazing in the rearview mirror may appear to be an exercise in 20/20 hindsight, but it isn’t. Investing is an active and engaged discipline that requires us to turn yesterday’s lessons into tomorrow’s insight. With that in mind, I’d like to share with you some of my thoughts on the investment landscape for the annual period that ended on October 31, 2004.

You probably began 2004 buoyed by the news of positive earnings reports, low interest rates and the market’s bullish bent that had carried over from late 2003. However, by February’s end, we all grew edgier as we watched our investments drawn into a vortex of volatility that persisted throughout the year. Beginning with the first 2004 U.S. employment reports, domestic and international markets¹ began swinging to and fro. The gyrations were fueled by conflicting economic reports, dollar weakness, national debt, trade imbalances, spotty corporate spending, and America’s unsettling presidential race...not to mention the fallout from global terrorism and Middle East tensions.

Co-Global Chief Investment Officer of Equities Young Chin gives more detail on these developments in his accompanying Market Perspectives.

We believe that one of the best ways to manage risk is to employ global investment diversification² coupled with skilled and disciplined active management. Our commitment is to offer you a diverse menu of products that include various asset classes and capture global investment opportunities in forms that you can use to diversify your portfolio. In response to complex, volatile markets, it’s imperative to have uncorrelated, well-performing funds that can populate a dynamic portfolio that helps to meet your specific investment objectives.

Several of our specialty sector funds, such as the Gartmore Global Financial Services Fund and the Gartmore Global Utilities Fund, were strong performers during the reporting period ended October 31, 2004. In the arena of international funds, we believe that China is—and will remain—a solid source of investment returns. This was amply illustrated by the performance of the Gartmore China Opportunities Fund, which commenced operations on June 29, 2004, vis-à-vis its benchmark and peer group.

Moving into the absolute return arena, the Gartmore U.S. Growth Leaders Long-Short Fund underscored the virtues derived from the ability to employ short selling in a mutual fund, a technique used to attempt to profit from falling stock prices. And, in terms of packaged asset allocation products, investments in the new Gartmore Optimal Allocations Funds edged ahead of benchmark returns since June 29, 2004, when this series commenced operations.

In keeping with our governance policies and unwavering commitment to placing the interests of shareholders first, we work closely with the independent Board of Trustees, and continue to closely assess fund performance, to design and deliver new products, and to address critical investment issues that matter to you.

One of the most surprising challenges we faced this year came in our $707 million³ stable value retirement product, the Gartmore Morley Capital Accumulation Fund. While stable value mutual funds have long been a popular investment option in IRAs and defined contribution plans, some of the long-accepted stable value mutual fund industry methods for stabilizing fund NAVs were placed under review by regulators in 2003. After 18 months, during which time we exhausted every avenue for resolving this issue, the Board of Trustees and the Gartmore management team concurred that it would be in our investors’ best interest to convert the Fund to a short-duration bond fund.

As of the writing of this letter, I’m pleased to report that the transition has gone smoothly. Moreover, every shareholder who redeemed his or her investment prior to the conversion of the fund received a per share value of $10, the net asset value that the fund had always sought to maintain.

All of us at Gartmore are looking forward to serving you for another year. As always, Gartmore values the confidence that you have placed in us as a steward of your investments, and we are firmly committed to helping you to protect and grow the assets you have entrusted to us.

Wishing you a very happy and prosperous 2005,

Paul J. Hondros
CEO
Gartmore

1.	International investing involves additional risks, including currency fluctuations, differences in accounting standards, political instability, and foreign regulations, all of which are magnified in emerging markets.
2.	Diversification is a risk management technique that mixes a wide variety of investments within a portfolio to minimize the impact of any one security on overall portfolio performance. There is no assurance that a diversified portfolio will produce better returns than a non-diversified portfolio.
3.	As of 10/31/04.

2 Annual Report 2004

Commentary by Young Chin
Co-Global Chief Investment Officer:Equities

During the first four months of this reporting period—from November 1, 2003, through February 29, 2004—the global economic recovery continued to gather momentum. The Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, representing international markets, gained 14.38%.¹ The S&P 500® Index, representing the U.S. market as a whole, gained 9.63%.¹ All major sectors within both indexes posted positive returns.

In March and April of 2004, however, the markets were hit with an unusually long series of negative news events including rising oil prices, reports of lower-than-expected U.S. manufacturing activity and dampened investor sentiment. Weaker-than-expected U.S. job growth numbers and constant government revisions to the job reports also fueled concerns about the true status and health of employment.

In addition, from March through October 2004, investors’ attention turned to the potential negative impacts of the following events: 1) brutal hostage-taking episodes in the Middle East; 2) further threats of large-scale terrorism; 3) rising short-term interest rates; 4) inflation concerns; 5) large and growing U.S. current account and trade deficits; 6) a weakening dollar; and 7) a close and contentious U.S. presidential election.

Amid this global scenario, equity markets were very volatile, exhibiting huge swings in sector performance. From March 1, 2004, through October 31, 2004, two sectors within the MSCI EAFE Index delivered negative returns—consumer staples and information technology; however, the Index managed to advance 4.18% during this period.¹ During the same period, four sectors within the S&P 500 Index—financial services, consumer staples, information technology and health care—posted negative returns. Fortunately, these negative returns did not offset the positive results from the other sectors and the S&P 500 Index managed to deliver nearly flat returns (-0.18%) during the last eight months of the period.

A 78% increase in oil prices (from $29.11 to $51.76)² from November 1, 2003 to October 31, 2004 (the “reporting period”) led to robust profits for energy-related companies. This increase was attributable to several factors, including vigorous consumption from China, and politically motivated supply disruptions in Russia, Iraq, Nigeria, and Venezuela, as well as weather-related disruptions caused by hurricanes that pounded the United States and hampered production in the Gulf of Mexico.

During the reporting period, utility companies also gained from higher-than-expected energy prices. High dividends made telecommunications stocks attractive. Industrial stocks gained due to demand from the recovering global economy, particularly the robust growth occurring in China. Domestically, within the S&P 500 Index for the entire reporting period, sector performance ranged from a high of 44% for the energy sector (38% for the MSCI EAFE Index) to a low of -1% for the information technology sector (-1.35% for the MSCI EAFE Index). Stocks in the utilities, telecommunications services and industrials sectors delivered returns of 24%, 21% and 18% (29%, 20% and 16% for the MSCI EAFE Index), respectively, while stocks in healthcare and consumer staples delivered returns of only 2% and 4% (3% and 15% for the MSCI EAFE Index), respectively.¹

In the United States, during the reporting period, health-care and consumer staples stocks, which typically are defensive in nature, delivered muted returns at a time when these stocks were expected to outperform. Health-care returns suffered from uncertainty regarding U.S. presidential candidate John Kerry’s reforms, as well as from investor concerns about the fundamental strength of major pharmaceutical companies, given their weak product pipelines. Consumer staples company margins were pressured by rising operating costs and managements’ inability to offset these costs by raising prices, due to the growing pricing power of discount retailers such as Wal-Mart Stores, Inc.

Information technology stocks during the reporting period posted negative returns due to cautious business spending. Despite an average of 22% profit growth for those companies in the S&P 500 Index during the reporting period,³ managers were intent on keeping costs down by limiting expenditures on labor and capital investments.

Fund reviews

Many investors struggled during the reporting period with the huge swings and wide range of returns in sector performance, as well as the many uncertainties that weighed on the global markets. Five of Gartmore’s specialty products, however, performed well during this reporting period, as noted in the table on page 4.

2004 Annual Report 3

Average Annual Total Returns
Nov. 1, 2003–Oct. 31, 2004

	Class A
	Average Annual			Benchmark
Fund	Total Returns*			Returns**
Gartmore Global Financial Services Fund**		17.01	%		14.32	%
Gartmore Global Utilities Fund**		31.81	%		24.49	%
Gartmore Micro Cap Equity Fund**		22.96	%		9.26	%
Gartmore Small Cap Fund**		15.33	%		11.73	%
Gartmore U.S. Growth Leaders Long-Short Fund**		9.03	%		1.09	%

Source: BISYS, as of Oct. 31, 2004

PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.

*

Performance is for Class A shares without sales charges and assumes that all distributions are reinvested. If these performance figures did include the load, results would have been lower. Total returns may reflect a waiver of part of the Fund’s fees for certain periods since inception, without which returns would have been lower. Standardized performance can be found in this report following the fund-specific commentaries. To obtain performance information current to the most recent month-end, which may be higher or lower than the performance shown above, please call 800-848-0920 or visit www.gartmorefunds.com.

**

Please see all fund-specific and benchmark-specific disclosures at the end of this report.

Benchmarks are for illustrative purposes only.

The Gartmore Global Financial Services Fund’s performance during this reporting period was bolstered by a generally favorable global economic and credit environment. Low interest rates aided consumers’ ability to manage their debt, evidenced by the fact that delinquency rates were relatively low, while businesses generated healthy cash flows. In addition, some of the Fund’s investments in Japan, where the economy rebounded after suffering through a decade-long depression, performed extremely well.

High electricity prices, as well as an emphasis on wireless telecommunications providers over fixed-line providers, helped the Gartmore Global Utilities Fund’s portfolio management team deliver stellar returns.

Particularly strong stock selection in the health-care, industrials and information technology sectors facilitated strong investment flow and returns for the Gartmore Micro Cap Equity Fund.

Concurrently, an overweighting in energy and materials, as well as flexibility in the information technology weighting, helped the Gartmore Small Cap Fund outperform its benchmark.

The Gartmore U.S. Growth Leaders Long-Short Fund produced above-average results. The Fund, which was put into the hands of a new management team on July 1, 2004, is employing a refined strategy designed to produce positive absolute returns and generate relatively low volatility as well as maintain a low correlation with the S&P 500 Index, while benchmarked against the Citigroup 3-Month T-Bill Index. The Fund also can help to reduce the overall risk of a portfolio because the Fund can short stocks and potentially outperform its peers during falling markets. With this new strategy, the Fund can be net long or short, and the manager typically will hold 70 to 100 positions. Under the previous management style, the Fund held somewhere between 400 and 500 securities.

Looking ahead

We expect economic and capital market conditions to improve during the upcoming reporting period as investors reposition for the long term. The number of adverse forces and political uncertainties weighing on the markets should decline. The U.S. economy should grow at a stable, trend rate of about 3% to 4%, and market volatility should decline.

Much of the uncertainty that had been weighing on the markets during the end of this reporting period was resolved with the U.S. presidential election results. Under President Bush’s administration, we expect the energy, utilities, financial services and defense industries to be well positioned for steady growth. In regard to the energy sector, the Republican-controlled Congress and the president appear to support U.S. policies that will make America less dependent on foreign energy supplies. The president is likely to promote the expansion of U.S. exploration activities and policies that will make it more beneficial for companies to explore alternative sources of energy, such as nuclear power. Proposed Republican tax policies should make those companies that pay high dividends, such as utility and financial services firms, more attractive. Financial services firms, in particular, should gain from President Bush’s efforts to partially privatize Social Security (the plan may be designed to divert some Social Security assets to private accounts). Defense companies should benefit from the high priority of the war on terror. The president’s plan for tort reform could help the health-care industry and other industries burdened by excessive litigation.

4 Annual Report 2004

Our investment management team believes that commodity prices should moderate somewhat as growth slows in response to rising interest rates across the globe. This rise should reduce some of the stimulus that has driven an extraordinarily robust increase in global demand. For example, we suspect that the price of oil will moderate somewhere in the $35 to $45 per barrel range, instead of hovering around the $50 mark. Moreover, prices for other materials such as copper and similar industrial metals also should moderate with a reduction in demand.

The strength of the U.S. dollar may continue to decline, which should prove to be a positive development for American manufacturers, because this decline makes their goods more attractive overseas. A decline in the U.S. dollar also may help to improve the U.S. current account deficit, due to improved trade balances.

So far, the slide in the dollar has been concentrated mainly against the European and Japanese currencies. Many Asian currencies, including China’s, have maintained a link to the dollar, which has actually caused their goods to gain in competitiveness, along with goods from the United States.

China, however, has been attempting to slow its robust economic growth, which over the past year has been gaining at a rate of 8% to 9%, in an effort to control its inflation rate.⁴ We would not be surprised to see China eventually remove its peg to the U.S. dollar, which would be a huge step toward a more market-based economy. A potential risk factor to the markets during 2005 is a continued or sharp drop in the value of the U.S. dollar, which would be disruptive to global markets since many Central Banks hold our currency. Another risk is a rapid decoupling of a major Asian economy’s peg to U.S. currency.

If all the above-mentioned positive factors come to pass, we should see U.S. job growth improve as corporate confidence is renewed in response to more stable and predictable economic conditions. There is a risk, however, that the pressures of global competition might dampen corporate flexibility to add resources. At present, though, companies have announced significant layoffs, which we see as another risk factor for 2005.

We believe that the Federal Reserve will continue to raise interest rates until the federal funds rate reaches a neutral (neither stimulative nor restrictive) level of 4%. Although this is not a net positive factor for the market, a 4% federal funds rate should permit the U.S. economy to solidify and continue to grow at a stable level. We expect no further short-term interest-rate increases in Japan or in Europe.

Outside the United States and within Europe, we believe that France and Italy have the most attractive valuations. We also believe that the macroeconomic outlook for the United Kingdom’s economy is very favorable.

Within the Pacific Rim we see good, but somewhat fragile, prospects in Japan. Japan’s economy has been heavily reliant upon China’s growth.

Japan will need a broader global recovery to offset an expected slight slowdown in 2005 for China. In addition, continued high oil prices are expected to pose greater challenges to the sustainability of Japan’s recent growth. We, however, believe that a sustained recovery in Japan is very possible, given the recent indications for greater domestic growth. Renewed investor sentiment and stronger consumer demand in Japan, as well as a continued favorable export environment, all support our view.

In summary, we expect that investors will react favorably to calmer market conditions and slowly increase their equity allocations. Instead of focusing on a plethora of negative events, investors can once again focus on fundamentals and opportunities.

A more certain U.S. political direction, more moderate commodity prices and a correction of some of the imbalances in the global economy brought about by a weaker U.S. dollar should create an environment of reduced volatility. In 2005, we believe that the biggest risks to the economy could be disruptive currency movements and weaker-than-anticipated job growth. Thus, we believe that investors should focus on diversification and asset allocation, based on their investment needs.

Young Chin
Co-Global Chief Investment Officer:Equities
Gartmore

Sources:

1.	FactSet Research Systems Inc., Nov. 1, 2003–Feb. 24, 2004; March 1, 2004–Oct. 31, 2004; Oct. 31, 2003–Oct. 31, 2004
2.	Bloomberg Financial Services, Nov. 1, 2003–Oct. 31, 2004
3.	Baseline Financial Services, Inc., Dec. 5, 2004

2004 Annual Report 5

4.   Zheng Jingping, “Stable and Fast Economic Growth in the First Three Quarters of 2004,” National Bureau of Statistics of China, Oct. 22, 2004, <http://www.stats.gov.ch/ english/newsandcomingevents.htm> (Dec. 16, 2004).

Investing in mutual funds involves risk, including possible loss of principal. There is no assurance that the investment objective of any fund will be achieved, or that a diversified portfolio will produce better returns than a nondiversified portfolio. Performance returns assume reinvestment of all distributions. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

Index performance is provided for comparison purposes only; the indexes are unmanaged and no fees or expenses are reflected. Individuals cannot invest directly in market indexes.

Gartmore Global Financial Services Fund
Morgan Stanley Capital International (MSCI) World Financials Index^SM: An unmanaged index that is based on developed-market country indexes and is generally representative of the stocks in the global financial services sector.

Gartmore Global Utilities Fund
Morgan Stanley Capital International (MSCI) World Utilities Index^SM: An unmanaged index that is based on developed-market country indexes and is generally representative of the stocks in the utilities sector, which includes industry groups such as electric, gas, multi-utilities, and unregulated power and water. Morgan Stanley Capital International (MSCI) World Telecommunication Services Index^SM: An unmanaged index that is based on developed-market country indexes and is generally representative of the stocks in the global utilities sector. The Gartmore Global Utilities Fund uses a composite of 60% MSCI World Telecommunication Services Index and 40% MSCI World Utilities Index.

Gartmore Micro Cap Equity Fund
Wilshire Micro-Cap® Index: An unmanaged, market capitalization-weighted index that measures small-cap stocks in the bottom “half” of the Wilshire 5000 Total Market Index as of June 30 of each year; the Wilshire 5000 Total Market Index contains more than 6,500 stocks that trade and are based in the United States.

Gartmore Small Cap Fund
Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the largest 3,000 U.S. companies, based on market capitalization.

Gartmore U.S. Growth Leaders Long-Short Fund
Citigroup 3-Month T-Bill Index: An unmanaged index that is generally representative of 3-month Treasury bills; consists of an average of the last 3-month Treasury bill issues (excluding the current month-end bill).

Funds that concentrate on specific sectors or a relatively small number of securities may be subject to greater volatility than a more diversified investment.

International investing involves additional risks, including currency fluctuations, differences in accounting standards, political instability and foreign regulations, all of which are magnified in emerging markets.

Small-company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility.

In order to achieve the Gartmore U.S. Growth Leaders Long-Short Fund’s objective, the managers may use sophisticated investment strategies such as leverage, short selling, short-term trading, investing in derivatives and in smaller companies. These strategies may cause the Fund to have greater risk and volatility, and higher expenses, than those of other investments. The risks of investing in this Fund are more fully detailed within the Fund’s prospectus.

The opinions expressed herein are those of Gartmore Global Investments and may not actually come to pass. This information is current as of October 31, 2004, and is subject to change at any time, based on market and other conditions.

Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Gartmore’s funds, please call 800-848-0920 to request a prospectus, or download a prospectus at www.gartmorefunds.com. Please read it carefully before investing any money.

Gartmore Funds distributed by Gartmore Distribution Services, Inc., Member NASD. 1200 River Road, Suite 1000, Conshohocken, PA 19428.

6 Annual Report 2004

Important Information

Small-company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility.

Funds that concentrate on specific sectors or a relatively small number of securities may be subject to greater volatility than a more diversified investment.

International investing involves additional risks, including currency fluctuations, differences in accounting standards, political instability and foreign regulations, all of which are magnified in emerging markets.

The Gartmore China Opportunities Fund invests in securities of companies that are located in, or derive a significant portion of their earnings or revenues from, China and/or Hong Kong. These securities may present substantially higher risks and greater volatility than those in most mutual funds. The Fund may not be appropriate for all investors. It also may purchase securities in initial public offerings, which can be very volatile and carry high transaction costs.

High-yield funds typically are subject to greater risk and price volatility than funds that invest in higher-rated debt securities.

In order to achieve the Gartmore U.S. Growth Leaders Long-Short Fund’s objective, the managers may use sophisticated investment strategies such as leverage, short selling, short-term trading, investing in derivatives and in smaller companies. These strategies may cause the Fund to have greater risk and volatility, and higher expenses, than those of other investments. The risks of investing in this Fund are more fully detailed within the Fund’s prospectus.

The Gartmore Small Cap Fund may purchase securities in initial public offerings, which can be very volatile and carry high transaction costs.

2004 Annual Report 7

Sector Series

Gartmore Global Financial Services Fund

For the annual period ended Oct. 31, 2004, the Gartmore Global Financial Services Fund returned 17.01% (Class A at NAV) versus 14.32% for its benchmark, the Morgan Stanley Capital International (MSCI) World Financials Index. For broader comparison, the average return for the Fund’s Lipper peer category of Financial Services Funds was 10.57%.

During the reporting period, financial services stocks were aided by a generally favorable global economic and credit environment. Low interest rates aided consumers’ ability to manage their debt, as delinquency rates were relatively low, while businesses generated healthy cash flows.

Factors that aided the Fund’s performance included the performance of some of the Fund’s investments in Japan, where the economy has been reviving after suffering through a decade-long depression. Orix Corp., a Japanese provider of financial services for small and mid-sized companies worldwide, performed well. In the United States, a number of our stock selections contributed positively to the Fund’s performance.

Credit-card issuer Capital One Financial Corp., for example, benefited from improving consumer credit and its exposure to auto and small business lending. Bank of America Corp.—the third-largest U.S. bank—continued to make progress in assimilating FleetBoston Financial Corp., a merger that already is exhibiting lowered costs of doing business. In addition, among smaller bank holdings, Colonial National Bank and Placer Sierra Bancshares merit mention as performance contributors for the Fund.

Underweighting the real estate segment was one factor that detracted from performance. Although many REITs (real estate investment trusts) did well, we thought that these REITs were richly valued and vulnerable to rising interest rates. Underperforming stocks held by the Fund included: New York Community Bancorp, Inc., –which we sold because of a deteriorating balance sheet– online brokerage firm Ameritrade Holding Corp. which was hampered by a decline in trading volumes during the summer.

Geographically, the Fund also suffered from being underweighted in stocks from Canada and Australia, which performed well in part because of currency appreciation in those countries.

We expect improving economic performance in the United States, as well as abroad, in 2005. Credit quality should remain strong, and perhaps even improve, during the first quarter and possibly into subsequent quarters. Mergers and acquisitions should continue, but at a slower pace amid richer valuations. Rising interest rates typically provide a challenging environment for financial services companies, but our approach is to limit the Fund’s exposure to pure lending plays. Instead, we will focus on companies with a significant component of fee-based income. In banking, we continue to favor smaller banks with good growth prospects and valuations that tend to make them attractive takeover candidates. We believe pricing in the property and casualty insurance industry could soften further. Consequently, we find few compelling values there at the moment. The Fund owns selected positions in asset managers and brokers, and we would consider raising our exposure if the financial markets show signs of breaking out of their recent trading ranges.

Portfolio Managers:
Douglas Burtnick, CFA And Stuart Quint, CFA

Class A: GLFAX

Class B: GLFBX

Class C: GLFCX

Class R: GLFRX

Institutional Service Class: GFISX

Institutional Class: GLFIX

2004 Annual Report 9

Sector Series

Gartmore Global Financial Services Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		17.01%		12.00%
	with sales charge3		10.28%		9.72%
Class B	without sales charge2		16.15%		11.20%
	with sales charge4		11.15%		10.33%
Class C	without sales charge2		16.16%		11.20%
	with sales charge5		15.16%		11.20%
Class R 6,8			16.47%		11.30%
Institutional Class7,8			17.25%		12.28%
Institutional Service Class8			17.25%		12.28%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on December 18, 2001.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
6	These returns until the creation of Class R shares (12/31/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
7	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.
8	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Global Financial Services Fund, Morgan Stanley Capital International World Financials Index (MSCI World Financials)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The MSCI World Financials is an unmanaged index representative of the stocks in the global financial services sector and is based on 23 developed market country indices.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

10 Annual Report 2004

Gartmore Global Financial Services Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Global Financial Services Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,049	$	8.55			1.66%
	Hypothetical	1	$	1,000	$	1,017	$	8.45			1.66%
Class B	Actual		$	1,000	$	1,046	$	12.34			2.40%
	Hypothetical	1	$	1,000	$	1,013	$	12.22			2.40%
Class C	Actual		$	1,000	$	1,046	$	12.34			2.40%
	Hypothetical	1	$	1,000	$	1,013	$	12.22			2.40%
Class R	Actual		$	1,000	$	1,047	$	9.88			1.92%
	Hypothetical	1	$	1,000	$	1,015	$	9.77			1.92%
Institutional Service Class	Actual		$	1,000	$	1,050	$	7.21			1.40%
	Hypothetical	1	$	1,000	$	1,018	$	7.13			1.40%
Institutional Class (a)	Actual		$	1,000	$	1,030	$	4.81	(b)		1.40%
	Hypothetical	1	$	1,000	$	1,010	$	4.78	(b)		1.40%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 11

Gartmore Global Financial Services Fund

Sector Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	94.6%
Repurchase Agreements	4.9%
Other Assets in excess of Liabilities	0.5%
	100.0%

Top Countries
United States	52.0%
United Kingdom	12.4%
Japan	6.3%
Switzerland	3.6%
France	3.5%
Hong Kong	2.9%
Ireland	2.5%
Germany	2.4%
Spain	2.2%
Belgium	1.9%
Other Countries	10.3%
	100.0%

Top Holdings
Bank Of America Corp.	4.2%
Citigroup, Inc.	4.1%
Royal Bank of Scotland Group PLC	3.6%
U.S. Bancorp	3.1%
HSBC Holdings PLC	3.1%
Wachovia Corp.	3.0%
Hang Lung Group Ltd.	2.9%
BNP Paribas SA	2.8%
Allstate Corp.	2.7%
UBS AG	2.6%
Other Holdings	67.9%
	100.0%

12 Annual Report 2004

Gartmore Global Financial Services Fund

Statement of Investments

October 31, 2004

Gartmore Global Financial Services Fund

Common Stocks (94.6%)
	Shares or
	Principal Amount		Value
AUSTRALIA (1.1%)
Banking (1.1%)
Australia & New Zealand Banking Group Ltd. (c)		4,403	$	67,408
BELGIUM (1.9%)
Financial Services (1.9%)
Fortis NV (c)		4,690		119,526
FRANCE (3.5%)
Banking (2.8%)
BNP Paribas SA (c)		2,620		178,448
Insurance (0.7%)
Axa (c)		2,070		44,649
				223,097
GERMANY (2.4%)
Financial Services (2.4%)
Hypo Real Estate Holding AG (b) (c)		4,090		153,038
HONG KONG (2.9%)
Financial Services (2.9%)
Hang Lung Group Ltd. (c)		112,640		184,684
IRELAND (2.5%)
Banking (2.5%)
Bank of Ireland (c)		11,610		159,005
ITALY (1.7%)
Banking (1.7%)
UniCredito Italiano SpA (c)		20,570		110,443
JAPAN (6.3%)
Banking (0.4%)
UFJ Holdings, Inc. (c)		6		27,814
Financial Services (5.5%)
Daito Trust Construction Co. Ltd. (c)		1,100		46,460
Mitsubishi Tokyo Financial Group, Inc. (c)		8		67,686
Mizuho Financial Group, Inc. (c)		13		50,105
Nomura Holdings, Inc. (c)		3,000		36,498
Orix Corp. (c)		700		81,801
Sumitomo Mitsui Financial Group, Inc. (c)		10		64,933
				347,483
Insurance (0.4%)
Millea Holdings, Inc. (c)		2		26,335
				401,632
PORTUGAL (0.5%)
Banking (0.5%)
Banco Commercial Portuguese S.A. (c)		14,000		32,997
SPAIN (2.2%)
Banking (2.2%)
Banco Popular Espanol SA (c)		1,020		57,794
Banco Santander Central Hispano SA (c)		7,470		83,383
				141,177
SWEDEN (1.6%)
Banking (1.6%)
Skandinaviska Enskilda Banken AB (c)		5,970		99,393
SWITZERLAND (3.6%)
Financial Services (2.6%)
UBS AG (c)		2,260		163,132
Insurance (1.0%)
Zurich Financial Services AG (c)		460		65,454
				228,586
UNITED KINGDOM (12.4%)
Banking (11.7%)
Barclays PLC (c)		12,691		124,031
HBOS PLC (c)		8,185		109,613
HSBC Holdings PLC (c)		12,210		196,976
Lloyds TSB Group PLC (c)		10,417		82,299
Royal Bank of Scotland Group PLC (c)		7,765		228,570
				741,489
Insurance (0.7%)
Royal & Sun Alliance Insurance Group PLC (c)		32,430		44,460
				785,949
UNITED STATES (52.0%)
Banking (15.6%)
Bank Of America Corp.		5,940		266,053
Marshall & Ilsley Corp.		780		32,737
Northern Trust Corp.		1,310		55,727
Placer Sierra Bancshares (b)		2,040		48,960
U.S. Bancorp		6,970		199,412
Wachovia Corp.		3,830		188,474
Wells Fargo & Co.		2,050		122,426
Zions Bancorp		1,140		75,434
				989,223
Financial Services (27.3%)
Accredited Home Lenders Holders Co. (b)		690		24,895
American Capital Strategies Ltd.		2,511		77,715
American Express Co.		1,780		94,465
Ameritrade Holding Corp. (b)		2,300		29,946
Calamos Asset Management, Inc., Class A (b)		2,950		57,525
Capital One Financial Corp.		1,550		114,328
CIT Group, Inc.		1,880		75,952
Citigroup, Inc.		5,960		264,445
Countrywide Financial Corp.		3,076		98,217

2004 Annual Report 13

Statement of Investments (Continued)

October 31, 2004

Gartmore Global Financial Services Fund (Continued)

Sector Series

Common Stocks (continued)
	Shares or
	Principal Amount		Value
UNITED STATES (continued) Financial Services (continued)
E*TRADE Financial Corp. (b)		5,170	$	66,693
Eagle Hospitality Properties Trust, Inc. (b)		3,410		32,395
Fannie Mae		1,366		95,825
Franklin Resources, Inc.		740		44,859
Freddie Mac		850		56,610
Goldman Sachs Group, Inc.		1,384		136,158
Investors Financial Services Corp.		1,960		75,440
J.P. Morgan Chase & Co.		3,159		121,937
Knight Trading Group, Inc. (b)		5,630		58,496
Legg Mason, Inc.		980		62,436
MBNA Corp.		1,510		38,701
Saxon Capital, Inc. (b)		2,500		48,000
T. Rowe Price Group, Inc.		860		47,962
				1,723,000
Insurance (9.1%)
Allstate Corp.		3,570		171,681
American International Group, Inc.		2,660		161,489
Assurant, Inc.		1,230		33,185
Hartford Financial Services Group		780		45,614
MGIC Investment Corp.		600		38,586
PartnerRe Ltd.		2,220		129,093
				579,648
				3,291,871
Total Common Stocks				5,998,806

Repurchase Agreements (4.9%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $129,465 (Fully collateralized by U.S. Treasury Notes and U.S. Agency Securities)	$	129,276		129,276
Nomura Securities, 1.75% dated 10/29/04, due 11/01/04, repurchase price $180,655 (Fully collateralized by AA Corporate Bonds and U.S. Agency Securities)		180,629		180,629
Total Repurchase Agreements				309,905
Total Investments (Cost $5,919,297) (a) — 99.5%				6,308,711
Other assets in excess of liabilities — 0.5%				29,064
NET ASSETS — 100.0%			$	6,337,775

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.
(c)	Fair Valued Security.

See notes to financial statements.

14 Annual Report 2004

Sector Series

Gartmore Global Health Sciences Fund

For the annual period ended Oct. 31, 2004, the Gartmore Global Health Sciences Fund returned 6.26% (Class A at NAV) versus 3.87% for its benchmark, the Goldman Sachs Healthcare Index. For broader comparison, the average return for the Fund’s Lipper peer category of Health/Biotechnology Funds was 5.93%.

In managing the Fund, we attempt to hold what we consider to be the best collection of health-care stocks in the portfolio each day, namely those companies that are experiencing positive and sustainable fundamental changes. We use quantitative techniques to guide the Fund’s industry and stock selection, but we rely most heavily on our proprietary research and new stock ideas as well as possible trends identified by our network of health-care industry contacts.

The Fund achieved solid gains during the annual period, though sector returns have been less robust than during the previous annual period. Both the Fund and the Index finished the period in positive territory, yet the Fund outperformed the Index due primarily to our stock selection decisions within the health-care providers and services sector as well as in pharmaceuticals. Within the health-care providers and services industry, which includes hospitals, long-term care facilities and other related companies, the Fund placed an emphasis on health maintenance organizations (HMOs); our research showed that many HMOs would benefit from strong revenue gains. Specifically, overweight positions HMOs, such as UnitedHealth Group Inc., and Magellan Health Services, Inc., contributed to the Fund’s outperformance in that industry. Fund holdings within the pharmaceuticals sector also performed well when compared to their counterparts in the Index. The best performer within this industry was the Fund’s position in Ireland-based Elan Corp., PLC. This company’s stock benefited from its management restructuring decisions, as well as the strength of the company’s product pipeline.

Unfortunately, several pharmaceutical holdings also held back the Fund’s return, most notably Merck & Co., Inc. Merck’s surprise decision to pull the anti-inflammatory drug, Vioxx, from the market sent the firm’s stock price plummeting immediately upon release of the news. As a result, added scrutiny also was given to other large pharmaceutical firms with comparable drugs, and whose stock was held by the Fund, such as Pfizer Inc., whose stock price also was hurt. Since Merck’s announcement, we have sold our position in the stock and trimmed the Fund’s position in other large U.S. pharmaceuticals.

Looking ahead, we believe that the health-care sector will remain largely a stock-picker’s market for the near term. Thus, we do not foresee any major themes emerging that would persuade us to significantly reposition the portfolio. We plan to maintain an underweight position in large U.S. pharmaceuticals, placing a greater emphasis on generic and European pharmaceutical companies. We also intend to continue to maintain significant positions in the HMO industry.

Portfolio Manager: Paul Cluskey

Class A: GLSAX

Class B: GLSBX

Class C: GMSCX

Class R: GGHRX

Institutional Service Class: GLSIX

Institutional Class: GGHIX

2004 Annual Report 15

Sector Series

Gartmore Global Health Sciences Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		6.26%		2.25%
	with sales charge3		0.19%		0.68%
Class B	without sales charge2		5.52%		1.57%
	with sales charge4		0.66%		0.83%
Class C5	without sales charge2		5.52%		1.59%
	with sales charge6		4.55%		1.59%
Class R 7,8			5.84%		1.65%
Institutional Class8,9			6.41%		2.51%
Institutional Service Class8,9			6.30%		2.48%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on December 29, 2000.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	These returns until the creation of Class C shares (9/23/02) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges.
6	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
7	These returns until the creation of Class R shares (12/31/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
8	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.
9	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Global Health Sciences Fund, the Goldman Sachs Healthcare Index (GS Healthcare)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The GS Healthcare is an unmanaged index representative of the stocks in the healthcare sector.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

16 Annual Report 2004

Gartmore Global Health Sciences Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Global Health Sciences Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	916	$	7.71			1.60%
	Hypothetical	1	$	1,000	$	1,017	$	8.14			1.60%
Class B	Actual		$	1,000	$	913	$	10.82			2.25%
	Hypothetical	1	$	1,000	$	1,014	$	11.45			2.25%
Class C	Actual		$	1,000	$	913	$	10.82			2.25%
	Hypothetical	1	$	1,000	$	1,014	$	11.45			2.25%
Class R	Actual		$	1,000	$	914	$	8.57			1.78%
	Hypothetical	1	$	1,000	$	1,016	$	9.06			1.78%
Institutional Service Class	Actual		$	1,000	$	916	$	7.03			1.46%
	Hypothetical	1	$	1,000	$	1,018	$	7.43			1.46%
Institutional Class (a)	Actual		$	1,000	$	929	$	4.08	(b)		1.25%
	Hypothetical	1	$	1,000	$	1,011	$	4.27	(b)		1.25%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 182/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 17

Gartmore Global Health Sciences Fund

Sector Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	88.2%
Repurchase Agreements	16.3%
Other Investments*	5.3%
Other Liabilities in excess of Assets**	-9.8%
	100.0%

 *  Includes value of collateral received from securities lending.

**  Includes value of collateral owed from securities lending.

Top Industries
Drugs	28.3%
Medical Products	24.9%
Medical Instruments	9.1%
Insurance	7.1%
Medical — Biomedical/ Genetic	7.0%
Medical Products & Services	6.6%
Therapeutics	3.1%
Hospitals	1.5%
Diagnostic Equipment	0.6%
Other Industries	11.8%
	100.0%

Top Holdings
Johnson & Johnson	7.8%
Abbott Laboratories	5.7%
Wyeth	5.2%
Medtronic, Inc.	5.2%
Bard (C.R.), Inc.	4.0%
UnitedHealth Group, Inc.	4.0%
Pfizer, Inc.	3.4%
Guidant Corp.	3.2%
InVitrogen Corp.	3.1%
Eli Lilly & Co.	2.9%
Other Holdings	55.4%
	100.0%

18 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Global Health Sciences Fund

Common Stocks (88.2%)
	Shares or
	Principal Amount		Value
Diagnostic Equipment (0.6%)
Immucor, Inc. (b)		2,780	$	85,763
Drugs (28.3%)
Abbott Laboratories		19,770		842,794
Andrx Corp. (b)		6,900		149,316
Eli Lilly & Co.		7,860		431,593
First Horizon Pharmaceutical Corp. (b)		6,760		166,161
GlaxoSmithKline PLC ADR - UK		9,150		387,960
Novartis AG ADR - CH		8,650		415,287
Pfizer, Inc.		17,444		505,004
Taro Pharmaceutical Industries Ltd. (b)		11,910		316,449
Valeant Pharmaceuticals International		2,140		51,360
Watson Pharmaceuticals, Inc. (b)		5,130		143,794
Wyeth		19,235		762,668
				4,172,386
Hospitals (1.5%)
Community Health Systems, Inc. (b)		5,450		146,169
Symbion, Inc. (b)		4,380		68,065
				214,234
Insurance (7.1%)
Aetna, Inc.		2,005		190,475
Molina Healthcare, Inc. (b)		910		33,506
UnitedHealth Group, Inc.		8,100		586,440
WellPoint Health Networks, Inc. (b)		2,410		235,361
				1,045,782
Medical - Biomedical/Genetic (7.0%)
Charles River Laboratories International, Inc. (b)		6,120		286,355
Genzyme Corp. (b)		5,550		291,209
Incyte Corp. (b)		28,470		296,087
Protein Design Labs, Inc. (b)		4,260		81,579
Transkaryotic Therapies, Inc. (b)		4,280		74,087
				1,029,317
Medical Instruments (9.1%)
Advanced Neuromodulation Systems, Inc. (b)		4,850		154,376
Beckman Coulter, Inc.		5,080		302,260
Boston Scientific Corp. (b)		5,760		203,328
Fisher Scientific International, Inc. (b)		3,410		195,598
Guidant Corp.		7,160		476,998
				1,332,560
Medical Products (24.9%)
Advanced Medical Optics, Inc. (b)		3,930		153,663
Bard (C.R.), Inc.		10,410		591,288
Baxter International, Inc.		7,890		242,696
Cytyc Corp. (b)		5,580		145,582
Johnson & Johnson		19,640		1,146,584
Kinetic Concepts, Inc. (b)		3,380		168,425
Medtronic, Inc.		14,880		760,517
St. Jude Medical, Inc. (b)		3,990		305,514
Vnus Medical Technologies (b)		9,750		146,640
				3,660,909
Medical Products & Services (6.6%)
Invitrogen Corp. (b)		7,810		452,199
Magellan Health Services, Inc. (b)		4,060		151,844
Medco Health Solutions, Inc. (b)		6,900		233,979
Pharmion Corp. (b)		2,970		136,472
				974,494
Therapeutics (3.1%)
Eyetech Pharmaceuticals, Inc. (b)		6,460		274,162
Gilead Sciences, Inc. (b)		5,200		180,076
				454,238
Total Common Stocks				12,969,683
Repurchase Agreements (16.3%)
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $998,867 (Fully collateralized by U.S. Treasury Notes and U.S. Agency Securities)	$	998,721		998,721
Nomura Securities, 1.75% dated 10/29/04, due 11/01/04, repurchase price $1,395,655 (Fully collateralized by AA Corporate Bonds and U.S. Agency Securities)		1,395,452		1,395,452
Total Repurchase Agreements				2,394,173
Short-Term Securities Held as Collateral for Securities Lending (5.3%)
Pool of short-term securities for Gartmore Mutual Funds - footnote 2 (Securities Lending)		779,449		779,449
Total Short-Term Securities Held as Collateral for Securities Lending				779,449
Total Investments (Cost $16,034,658) (a) — 109.8%				16,143,305
Liabilities in excess of other assets — (9.8)%				(1,447,527)
NET ASSETS — 100.0%			$	14,695,778

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.

ADR      American Depositary Receipt

CH       Switzerland

UK       United Kingdom

See notes to financial statements.

2004 Annual Report 19

Sector Series

Gartmore Global Natural Resources Fund

From its inception on June 29, 2004, through Oct. 31, 2004, the Gartmore Global Natural Resources Fund returned 12.58% (Class A at NAV) versus 10.39% for its benchmark, the Goldman Sachs Natural Resources Index. Due to its recent inception, the Fund has not yet been classified by Lipper.

Several factors contributed to the Fund’s performance during the period. Most notably, natural resources stocks were driven primarily by high energy prices, especially for crude oil, which surged above $50 per barrel near the end of the period. While the Organization of Petroleum Exporting Countries (OPEC) tried to increase production and keep a lid on oil prices, a number of factors combined to more than offset OPEC’s efforts. These included: (1) strong demand from China; (2) fears of supply disruptions due to various geopolitical developments in Russia, Iraq, Nigeria Norway, and Venezuala; (3) the worst hurricane season to hit the United States in 40 years; and (4) tight refining capacity. Also aiding the natural resources sector were strong prices for both industrial and precious metals.

Relative to the benchmark, the Fund was helped by an overweighting in energy services and drilling stocks. These stocks contributed positively to the Fund’s performance because the typical spending increases for energy services and drilling had been delayed due to the recent worldwide recession and the subsequent climate of generally cautious business spending. Given the persistent strength in energy prices, however, exploration companies are likely to ramp up spending in the near future. Among drillers, land drillers, such as Nabors Industries Ltd. also contributed to Fund performance during the period as a result of their greater exposure to natural gas and decreased sensitivity to overseas events. Among services stocks, Halliburton Co. and BJ Services Co. contributed to Fund performance.

The Fund also benefited from investing in companies that provide equipment and services for coal, copper and steel mining, as robust demand from China, as well as bottlenecks in the transportation industry, contributed to higher commodity prices in those markets. Machinery companies Bucyrus International, Inc. and Joy Global Inc. were noteworthy contributors to Fund performance. Bucyrus, a Milwaukee-based maker of excavation equipment, enjoyed a respectable advance following its initial public offering in late July, as a sizable backlog of orders attracted investors’ attention. Another contributor to Fund performance, International Steel Group Inc., surged late in the period due to a buyout offer from rival steel producer Ispat International N.V.

On the other hand, an underweighting versus the benchmark in large, integrated energy companies hurt Fund performance. An underweighting in precious metals also detracted from performance. With many gold mining companies trading at a premium to the value of their gold reserves, we found most precious metals stocks unappealing from a valuation standpoint. In the aluminum industry, Alcoa Inc. lagged, due in part to disappointment about the company’s first-quarter 2004 financial results.

We foresee that some short-term consolidation might occur in the natural resources sector, as share prices have had quick runups in many cases. Accordingly, we feel that a “buy the dips” strategy, or purchasing stocks that appear to exhibit short-term price reversals, is called for in the case of the sector’s more richly valued stocks. That said, the favorable fundamentals supporting this sector in the recent past—including a weak U.S. dollar and large budget and trade deficits, as well as rapidly growing demand from China and India—should make the sector an attractive place to invest for the foreseeable future.

Portfolio Managers: William Gerlach, CFA

Class A: GGNAX

Class B: GGNBX

Class C: GGNCX

Class R: GGNRX

Institutional Service Class: GGNSX

Institutional Class: GGNIX

20 Annual Report 2004

Gartmore Global Natural Resources Fund

Fund Performance

Average Annual Total Return

(For Periods Ended October 31, 2004)

		Inception1
Class A1	without sales charge2		12.58%
	with sales charge3		6.11%
Class B1	without sales charge2		12.10%
	with sales charge4		7.10%
Class C	without sales charge2		12.20%
	with sales charge5		11.20%
Class R6			12.22%
Institutional Class6			12.60%
Institutional Service Class6			12.50%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on June 29, 2004.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 1% after 6 years.
5	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
6	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Global Natural Resources Fund, Goldman Sachs Natural Resources Index (a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	Goldman Sachs Natural Resources Index is an unmanaged, modified capitalization-weighted sector index of U.S.-traded natural resource-related stocks; includes companies in the categories of extractive industries, energy companies, owners and operators of timber tracts, forestry services, producers of pulp and paper, and owners of plantations.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

*  The Shareholder Expense Example is not required for Funds that are operational less than six months.

2004 Annual Report 21

Gartmore Global Natural Resources Fund

Sector Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	95.0%
Repurchase Agreement	2.8%
Other Assets in excess of Liabilities	2.2%
	100.0%

Top Industries
Oil Company — Integrated	31.2%
Oil Company — Exploration & Production	17.5%
Oil & Gas Drilling	7.7%
Oil Field Services	7.4%
Energy	5.2%
Raw Materials	4.5%
Paper and Related Products	4.1%
Pipelines — Domestic	3.4%
Gold Mining	3.0%
Machinery — Construction & Mining	2.6%
Other Industries	13.4%
	100.0%

Top Holdings
Exxon Mobil Corp.	8.5%
ChevronTexaco Corp.	7.6%
BP PLC - ADR - GB	5.8%
ConocoPhillips	5.1%
Royal Dutch Petroleum Co.	4.3%
Halliburton Co.	3.7%
Schlumberger Ltd.	3.6%
Nabors Industries, Ltd.	3.4%
Newmont Mining Corp.	3.0%
BJ Services Co.	2.9%
Other Holdings	52.1%
	100.0%

22 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Global Natural Resources Fund

Common Stocks (95.0%)
	Shares or
	Principal Amount		Value
Chemicals Specialty (0.9%)
Ashland, Inc.		570	$	32,843
Coal Mining (2.0%)
Peabody Energy Corp.		1,100		70,158
Copper Production (1.5%)
Phelps Dodge Corp.		607		53,137
Energy (5.2%)
Arch Coal, Inc.		1,286		41,821
BJ Services Co.		2,000		101,999
KFx, Inc. (b)		2,305		21,529
Murphy Oil Corp.		200		16,004
				181,353
Gold Mining (3.0%)
Newmont Mining Corp.		2,200		104,544
Industrial Gases (0.9%)
Praxair, Inc.		770		32,494
Machinery - Construction & Mining (2.6%)
Bucyrus International, Inc., Class A		1,400		42,000
Joy Global, Inc.		1,400		47,306
				89,306
Metal - Aluminum (0.5%)
Alcan, Inc.		350		16,212
Oil & Gas Drilling (7.7%)
GlobalSantaFe Corp.		2,350		69,325
Grey Wolf, Inc. (b)		4,950		25,641
Nabors Industries, Ltd. (b)		2,437		119,705
Noble Corp. (b)		800		36,544
Patterson - UTI Energy, Inc.		890		17,115
				268,330
Oil Company - Exploration & Production (17.5%)
Apache Corp.		1,637		82,996
Burlington Resources, Inc.		1,670		69,305
Chesapeake Energy Corp.		1,100		17,688
EnCana Corp.		1,050		51,870
EOG Resources, Inc.		1,020		67,891
Noble Energy, Inc.		1,200		69,600
Quicksilver Resources, Inc. (b)		2,722		86,097
Transocean Sedco Forex, Inc. (b)		2,100		74,025
Ultra Petroleum Corp. (b)		790		38,394
XTO Energy, Inc.		1,633		54,510
				612,376
Oil Company - Integrated (31.2%)
BP PLC - ADR - GB		3,472		202,244
ChevronTexaco Corp.		5,000		265,300
ConocoPhillips		2,100		177,051
Exxon Mobil Corp.		6,000		295,319
Royal Dutch Petroleum Co.		2,800		151,872
				1,091,786
Oil Field Services (7.4%)
Halliburton Co.		3,500		129,640
Schlumberger Ltd.		2,025		127,454
				257,094
Oil Refining & Marketing (0.5%)
Sunoco, Inc.		230		17,103
Paper & Related Products (4.1%)
Georgia-Pacific Corp.		1,700		58,803
International Paper Co.		2,200		84,722
				143,525
Pipelines - Domestic (3.4%)
Enbridge, Inc.		1,200		52,093
Questar Corp.		250		12,000
The Williams Companies, Inc.		4,500		56,295
				120,388
Raw Materials (4.5%)
Alcoa, Inc.		2,700		87,750
Vulcan Materials Co.		1,400		69,692
				157,442
Steel Production (2.1%)
International Steel Group, Inc. (b)		1,472		54,361
United States Steel Corp.		475		17,442
				71,803
Total Common Stocks				3,319,894

2004 Annual Report 23

Statement of Investments (Continued)

October 31, 2004

Gartmore Global Natural Resources Fund (Continued)

Sector Series

Repurchase Agreements (2.8%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $40,218 (Fully collateralized by AA Rated Corporate Bonds)	$	40,216	$	40,216
Nomura Securities, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $56,195 (Fully collateralized by U.S. Agency Securities)		56,192		56,192
Total Repurchase Agreements				96,408
Total Investments (Cost $3,167,954) (a) — 97.8%				3,416,302
Other assets in excess of liabilities — 2.2%				77,490
NET ASSETS — 100.0%			$	3,493,792

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Non-income producing securities.

ADR      American Depositary Receipt

UK       United Kingdom

See notes to financial statements.

24 Annual Report 2004

Sector Series

Gartmore Global Technology and Communications Fund

For the annual period ended Oct. 31, 2004, the Gartmore Global Technology and Communications Fund returned -8.81% (Class A at NAV) versus -2.58% for its benchmark, the Goldman Sachs Technology Composite Index. For broader comparison, the average return for the Fund’s Lipper peer category of Science & Technology Funds was -3.14%.

Technology stocks began the reporting period in a bullish mode, building on a broad-based rally that began in March 2003. The U.S. economy, however, continued to decelerate and, as the period progressed, investors responded by rotating money out of technology stocks and into sectors considered to be more defensive, such as consumer staples and energy. Demand for technology products and services was limited by consumers’ considerable debt and by cautious business spending, which may have been a result of uncertainty about the U.S. presidential election and concerns about higher energy costs.

The Fund was helped by its investments in Internet stocks, including Yahoo! Inc. and eBay Inc. Yahoo!, the Fund’s largest holding at period-end, was particularly successful in attracting Internet users to its Web site, enabling the company to maintain favorable profit margins for its online advertising services. Apple Computer, Inc. was another contributor, as the stock more than doubled, mainly due to robust demand for the company’s iPod digital music player. Synaptics Inc., a maker of touchpad technologies for laptop computers, also was a standout, aided by strong demand for touch keypad, keyboards and other computer input devices.

On the negative side, performance suffered because of an underweighting in the computers and peripherals area, which held up better than most other technology subsectors. In addition, shares of SanDisk Corp., a maker of the flash memory cards used in digital cameras, multimedia cellular phones and other digital devices, fell sharply during the period. Although this holding fit well with our theme of investing in companies that support the growing digital communications area, this Fund holding was hurt by excessive capacities additions and weak pricing. In the software segment, PalmSource, Inc., a provider of operating systems for handheld devices, experienced a 41% decline in share price, resulting in -0.71% loss to the Fund. Investors feared that PalmSource, recently spun off from handheld device maker palmOne, would have trouble competing with Microsoft and other rivals.

Although growth stocks and tech stocks in particular struggled during this period, we are moderately optimistic about their prospects in 2005. Many Wall Street analysts have scaled back their individual company forecasts, which could open the door for upside surprises. And, while interest rates are rising, we believe the Fed will do its tightening at a gradual pace which should not jeopardize the economic recovery. Energy prices are moderating which should help spending by individuals and businesses. We will be looking at the areas of broadband penetration, internet security, e-commerce, digital radio/satellite, India’s IT companies and online travel to include companies with strong end-user demand and growing markets.

Portfolio Managers: Aaron Harris and Chip Zhu

Class A: GAGTX

Class B: GBGTX

Class C: GCGTX

Class R: GGTRX

Institutional Service Class: GIGTX

Institutional Class: GGTIX

2004 Annual Report 25

Sector Series

Gartmore Global Technology and Communications Fund

Fund Performance

Average Annual Total Return

(For Periods Ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		-8.81%		-19.99%
	with sales charge3		-14.15%		-21.08%
Class B	without sales charge2		-9.55%		-20.57%
	with sales charge4		-14.07%		-20.91%
Class C5	without sales charge2		-9.50%		-20.46%
	with sales charge6		-10.40%		-20.46%
Class R 7,9			-9.28%		-20.52%
Institutional Class8,9			-8.67%		-19.68%
Institutional Service Class8,9			-8.93%		-19.73%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on June 30, 2000.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges.
6	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
7	These returns until the creation of Class R shares (12/31/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
8	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.
9	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Global Technology and Communications Fund, Morgan Stanley High-Tech 35 Index (Morgan Stanley High-Tech)(old)(a), Goldman Sachs Technology Composite Index(GSTI®)(new)(b) and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The Morgan Stanley High-Tech(old) is an equal dollar-weighted index of 35 stocks in nine different technology subsectors.
(b)	The GSTI®(new) is an unmanaged, modified, market capitalization-weighted index that is designed to measure the performance of companies in the technology sector.
(c)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

26 Annual Report 2004

Gartmore Global Technology and Communications Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
Global Technology and			Account Value		Account Value		Expenses Paid			Annualized
Communications Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	994	$	8.57			1.71%
	Hypothetical	1	$	1,000	$	1,016	$	8.70			1.71%
Class B	Actual		$	1,000	$	991	$	12.01			2.40%
	Hypothetical	1	$	1,000	$	1,013	$	12.22			2.40%
Class C	Actual		$	1,000	$	991	$	12.01			2.40%
	Hypothetical	1	$	1,000	$	1,013	$	12.22			2.40%
Class R	Actual		$	1,000	$	994	$	9.62			1.92%
	Hypothetical	1	$	1,000	$	1,015	$	9.77			1.92%
Institutional Service Class	Actual		$	1,000	$	994	$	8.12			1.62%
	Hypothetical	1	$	1,000	$	1,017	$	8.25			1.62%
Institutional Class (a)	Actual		$	1,000	$	940	$	4.60	(b)		1.40%
	Hypothetical	1	$	1,000	$	1,010	$	4.78	(b)		1.40%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 27

Gartmore Global Technology and Communications Fund

Sector Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	89.2%
Repurchase Agreements	2.1%
Other Investments*	10.2%
Other Assets in excess of Liabilities**	-1.5%
	100.0%

 *  Includes value of collateral received form securities lending.

**  Includes value of collateral owed from securities lending.

Top Industries
Computer Software	28.2%
Computer Services	12.9%
Internet Security	6.1%
Wireless Equipment	5.9%
Internet Services/Software	5.9%
Semiconductors	4.1%
Electronic Components	3.7%
Radio	3.7%
Applications Software	3.6%
Telecommunication Equipment	3.5%
Other Industries	22.4%
	100.0%

Top Holdings
Yahoo, Inc.	4.8%
XM Satellite Radio Holdings, Inc., Class A	3.7%
Apple Computer, Inc.	3.4%
Intel Corp.	2.8%
eBay, Inc.	2.5%
Intuit, Inc.	2.5%
Aladdin Knowledge Systems	2.2%
Jupitermedia Corp.	2.2%
Motorola, Inc.	2.2%
Infosys Technologies Ltd. ADR - IN	2.2%
Other Holdings	71.5%
	100.0%

28 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Global Technology and Communications Fund

Common Stocks (89.2%)
	Shares or
	Principal Amount		Value
Applications Software (3.6%)
MICROS Systems, Inc. (b)		2,400	$	141,888
Satyam Computer Services Ltd. ADR - IN		6,700		176,009
				317,897
Computer Hardware (3.4%)
Apple Computer, Inc. (b)		5,600		294,168
Computer Services (12.9%)
Cognizant Technology Solutions Corp., Class A (b)		5,400		183,600
Jupitermedia Corp. (b)		9,800		194,383
Kanbay International, Inc. (b)		3,700		88,393
Radware Ltd. (b)		2,700		66,690
Research in Motion Ltd. (b)		2,000		176,400
Yahoo, Inc. (b)		11,500		416,185
				1,125,651
Computer Software (28.2%)
Adobe Systems, Inc.		2,000		112,060
AutoDesk, Inc.		2,400		126,600
Business Objects S.A. ADR - FR (b)		5,000		127,600
Computer Associates International, Inc.		4,600		127,466
Compuware Corp. (b)		18,900		109,431
Infosys Technologies Ltd. ADR - IN		2,900		192,850
Intuit, Inc. (b)		4,800		217,727
Kronos, Inc. (b)		3,200		156,960
McAfee, Inc. (b)		5,900		142,780
McDATA Corp., Class B (b)		29,000		174,000
Micromuse, Inc. (b)		9,200		39,468
Microsoft Corp.		5,600		156,744
Open Solutions, Inc. (b)		6,700		188,706
Oracle Corp. (b)		13,400		169,644
PalmSource, Inc. (b)		4,000		89,680
Sun Microsystems, Inc. (b)		11,300		51,189
Synaptics, Inc. (b)		4,400		139,216
Wind River Systems, Inc. (b)		9,500		127,205
				2,449,326
E-Commerce (3.4%)
eBay, Inc. (b)		2,200		214,742
eLong, Inc. (b)		6,000		81,600
				296,342
Electronic Components (3.7%)
AMX Corp. (b)		4,100		79,827
Intel Corp.		11,100		247,086
				326,913
Internet Security (6.1%)
Aladdin Knowledge Systems (b)		7,800		196,170
Symantec Corp. (b)		2,800		159,432
VeriSign, Inc. (b)		6,600		177,078
				532,680
Internet Services/ Software (5.9%)
Akamai Technologies, Inc. (b)		5,200		72,020
Ask Jeeves, Inc. (b)		2,300		59,294
F5 Networks, Inc. (b)		3,500		139,825
J2 Global Communications, Inc. (b)		4,800		144,720
Sapient Corp. (b)		6,900		55,545
Shanda Interactive Entertainment Ltd. (b)		1,300		39,506
				510,910
Investment Companies (1.0%)
Harris & Harris Group, Inc. (b)		7,600		90,364
Radio (3.7%)
XM Satellite Radio Holdings, Inc., Class A (b)		10,000		323,200
Semiconductors (4.1%)
Freescale Semiconductor, Inc. (b)		8,000		124,320
Marvel Technology Group Ltd. (b)		6,100		174,277
National Semiconductor Corp.		3,600		60,120
				358,717
Telecom Equipment (2.7%)
Digi International, Inc. (b)		9,500		130,055
SBA Communications Corp. (b)		12,900		107,973
				238,028
Telecom Services (1.1%)
Ubiquitel, Inc. (b)		17,200		97,524
Telecommunication Equipment (3.5%)
Comverse Technology, Inc. (b)		5,200		107,328
NII Holdings, Inc., Class B (b)		1,900		84,113
Telefonaktiebolaget LM Ericsson ADR - SE (b)		3,800		109,858
				301,299
Wireless Equipment (5.9%)
American Tower Corp. (b)		9,100		156,429
Motorola, Inc.		11,200		193,312
QUALCOMM, Inc.		4,000		167,240
				516,981
Total Common Stocks				7,780,000

2004 Annual Report 29

Statement of Investments (Continued)

October 31, 2004

Gartmore Global Technology and Communications Fund (Continued)

Sector Series

Repurchase Agreements (2.1%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $76,202 (Fully collateralized by Treasury Notes and U.S. Agency Securities)	$	76,191	$	76,191
Nomura Securities, 1.75% dated 10/29/04, due 11/01/04, repurchase price $106,472 (Fully collateralized by AA Corporate Bonds and U.S. Agency Securities)		106,456		106,456
Total Repurchase Agreements				182,647
Short-Term Securities Held as Collateral for Securities Lending (10.2%)
Pool of short-term securities for Gartmore Mutual Funds — footnote 2 (Securities Lending)		889,381		889,381
Total Short-Term Securities Held as Collateral for Securities Lending				889,381
Total Investments (Cost $8,283,406) (a) — 101.5%				8,852,028
Liabilities in excess of other assets — (1.5%)				(128,118)
NET ASSETS — 100.0%			$	8,723,910

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.

ADR   American Depositary Receipt

FR    France

IN    India

SE    Sweden

See notes to financial statements.

30 Annual Report 2004

Sector Series

Gartmore Global Utilities Fund

For the annual period ended Oct. 31, 2004, the Gartmore Global Utilities Fund returned 31.81% (Class A at NAV) versus 24.49% for its benchmark, 60% Morgan Stanley Capital International (MSCI) World Telecommunication Services Index/40% MSCI World Utilities Index. For broader comparison, the average return for the Fund’s Lipper peer category of Utility Funds was 22.78%.

The Fund invests in equities whose primary business operations are in the utility sector or related industries. These include companies that provide services to the public in areas such as telecommunications, cable television, radio, transportation, water and energy. Utility companies have traditionally paid above-average dividends, but the Fund also focuses on companies that have strong growth potential.

High electricity prices—caused mainly by high prices for input materials such as gas, oil and coal—drove strong revenue growth for many companies in the utilities sector. Fund performance benefited from this environment, yet the Fund outperformed its benchmark primarily because sector allocation and stock selection decisions succeeded in adding alpha (risk-adjusted returns largely attributed to the manager’s stock and/or sector selection) to the portfolio. In particular, we increased the Fund’s utilities and wireless telecommunications holdings while decreasing positions in traditional telecommunications companies, an area that experienced more moderate growth rates.

Within the utilities sector, electric utilities contributed most to Fund returns, followed by oil and gas, multi-utilities and unregulated power companies. Texas-based TXU Corp. and Scandinavia-based Fortum—both of which benefited from high electricity prices—were notable contributors to the Fund’s performance. TXU also brought in a new management team and embarked on a program to pay down company debt and increase payouts to shareholders, while Fortum performed well due to its announcement that it would spin off its oil refinery business.

We chose to purchase the stocks of wireless telecommunications providers over fixed-line providers because we believe that the area offers higher growth potential. This decision added to Fund returns as several wireless providers made strong contributions to the Fund’s performance. Vodafone Group PLC and Verizon Communications Inc., for example, added more than 5% to returns. Within this sector, however, the Fund’s underweight position in France Telecom detracted from returns relative to the blended index.

Both the utilities and telecommunications sectors appear well positioned to maintain their strong growth into 2005. In general, management teams within these sectors are showing discipline, paying dividends and repurchasing company stock—three positive indicators for stock prices. We also believe that the high energy prices that have boosted utilities’ revenues during the past year will continue to provide a tailwind for these companies throughout the year to come. Within the telecommunications services sector, we plan to remain focused on wireless providers because new third-generation handsets as well as further expansion into developing markets should provide new revenue sources for those companies.

Portfolio Manager: Ben Walker

Class A: GGUAX

Class B: GGUBX

Class C: GGUCX

Class R: GLURX

Institutional Service Class: GUISX

Institutional Class: GLUIX

2004 Annual Report 31

Sector Series

Gartmore Global Utilities Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		31.81%		3.61%
	with sales charge3		24.16%		1.50%
Class B	without sales charge2		30.86%		2.85%
	with sales charge4		25.86%		1.85%
Class C	without sales charge2		30.90%		2.86%
	with sales charge5		29.90%		2.86%
Class R 6,8			31.46%		3.01%
Institutional Class7,8			32.13%		3.89%
Institutional Service Class8			32.13%		3.89%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on December 18, 2001.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
6	These returns until the creation of Class R shares (12/31/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
7	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.
8	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Global Utilities Fund, Morgan Stanley Capital International World Telecommunications Services Index (MSCI World Telecom)(a), Morgan Stanley Capital International World Utilities Index (MSCI World Utilities)(b), Composite Index (Composite)(c) and the Consumer Price Index (CPI)(d) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The MSCI World Telecom is an unmanaged index representative of the stocks in the global utilities sector and is based on 23 developed market country indices.
(b)	The MSCI World Utilities is made up of industry groups such as electric, gas, multi utilities and unregulated power and water.
(c)	The Composite is a combination of 60% MSCI World Telecom and 40% MSCI World Utilities Indices.
(d)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

32 Annual Report 2004

Gartmore Global Utilities Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Global Utilities Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,157	$	7.86			1.45%
	Hypothetical	1	$	1,000	$	1,018	$	7.38			1.45%
Class B	Actual		$	1,000	$	1,153	$	11.91			2.20%
	Hypothetical	1	$	1,000	$	1,014	$	11.20			2.20%
Class C	Actual		$	1,000	$	1,153	$	11.91			2.20%
	Hypothetical	1	$	1,000	$	1,014	$	11.20			2.20%
Class R	Actual		$	1,000	$	1,156	$	9.27			1.71%
	Hypothetical	1	$	1,000	$	1,016	$	8.70			1.71%
Institutional Service Class	Actual		$	1,000	$	1,159	$	6.51			1.20%
	Hypothetical	1	$	1,000	$	1,019	$	6.11			1.20%
Institutional Class (a)	Actual		$	1,000	$	1,122	$	4.31	(b)		1.20%
	Hypothetical	1	$	1,000	$	1,011	$	4.10	(b)		1.20%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 33

Gartmore Global Utilities Fund

Sector Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	99.3%
Participation Notes	0.3%
Other Assets in excess of Liabilities	0.4%
	100.0%

Top Countries
United States	34.5%
United Kingdom	25.5%
Spain	7.8%
Japan	5.8%
Italy	5.8%
Germany	5.2%
France	3.5%
Finland	3.0%
Austria	2.4%
Portugal	1.8%
Other Countries	4.7%
	100.0%

Top Holdings
Vodafone Group PLC	10.0%
Telefonica SA	6.0%
Verizon Communications, Inc.	5.9%
E. ON AG	3.6%
TXU Corp.	3.6%
Telecom Italia SpA	3.5%
Exelon Corp.	3.3%
Suez SA	3.0%
Fortum Oyj	3.0%
SBC Communications, Inc.	2.7%
Other Holdings	55.4%
	100.0%

34 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Global Utilities Fund

Common Stocks (99.3%)
	Shares or
	Principal Amount		Value
AUSTRIA (2.4%)
Oil & Gas Utility (2.0%)
OMV AG (c)		552	$	132,491
Telecommunications (0.4%)
Telekom Austria AG (c)		1,965		29,803
				162,294
CANADA (1.6%)
Telecommunications (1.6%)
BCE, Inc.		4,576		106,132
FINLAND (3.0%)
Oil & Gas Utility (3.0%)
Fortum Oyj (c)		13,061		199,731
FRANCE (3.5%)
Oil & Gas Utility (0.5%)
Total SA (c)		156		32,465
Water Utility (3.0%)
Suez SA (c)		8,753		204,478
				236,943
GERMANY (5.2%)
Gas & Electric Utility (5.2%)
E. ON AG (c)		2,975		242,635
Rwe AG (c)		2,080		110,081
				352,716
HONG KONG (0.3%)
Electric Utility (0.3%)
CLP Holdings Ltd. (c)		3,000		17,226
ITALY (5.8%)
Electric Utility (1.3%)
Enel SpA (c)		9,369		84,603
Gas Utility (0.3%)
Snam Rete Gas SpA (c)		4,491		22,775
Oil & Gas Drilling (0.5%)
Saipem SpA (c)		3,149		36,266
Telecommunications (3.7%)
Telecom Italia SpA (c)		70,280		233,951
Telecom Italia Di RISP (c)		5,060		12,584
				246,535
				390,179
JAPAN (5.8%)
Electric Utility (3.8%)
Chubu Electric Power Co., Inc. (c)		2,600		56,437
Kansai Electric Power Co., Inc. (c)		2,200		41,162
Kyushu Electric Power Co., Inc. (c)		1,800		35,597
Tohoku Electric Power Co., Inc. (c)		1,800		30,664
Tokyo Electric Power Co., Inc. (c)		4,300		97,202
				261,062
Gas Utility (0.8%)
Osaka Gas Co. Ltd. (c)		10,000		28,910
Tokyo Gas Co. Ltd. (c)		6,000		22,336
				51,246
Telecommunications (1.2%)
Nippon Telegraph & Telephone Corp. (c)		19		80,639
				392,947
LUXEMBOURG (1.2%)
Oil & Gas Utility (1.2%)
Stolt Offshore SA (b) (c)		15,891		80,097
NORWAY (0.4%)
Telecommunications (0.4%)
Telenor ASA (c)		3,079		24,525
PORTUGAL (1.8%)
Telecommunications (1.8%)
Portugal Telecom SA (c)		10,784		121,559
SINGAPORE (0.5%)
Telecommunications (0.5%)
Singapore Telecommunications Ltd. (c)		22,285		32,414
SPAIN (7.8%)
Gas & Electric Utility (1.8%)
Union Fenosa SA (c)		5,033		122,512
Telecommunications (6.0%)
Telefonica SA (c)		24,264		401,572
Television (0.0%)
Antena 3 Television SA (b) (c)		34		2,179
				526,263
UNITED KINGDOM (25.5%)
Electric Utility (6.3%)
International Power PLC (b) (c)		44,735		132,086
National Grid Transco PLC (c)		8,820		76,781
Scottish & Southern Energy PLC (c)		7,416		113,523
Scottish Power PLC (c)		12,220		98,764
				421,154

2004 Annual Report 35

Statement of Investments (Continued)

October 31, 2004

Gartmore Global Utilities Fund (Continued)

Sector Series

Common Stocks (continued)
	Shares or
	Principal Amount		Value
UNITED KINGDOM (continued)
Gas & Electric Utility (0.5%)
Centrica PLC (c)		7,009	$	30,979
Telecommunications (9.9%)
Vodafone Group PLC (c)		262,405		673,449
Transportation (1.2%)
Peninsular and Oriental Steam Navigation Co. (c)		16,380		80,469
Water Utility (7.6%)
AWG PLC (b) (c)		5,135		68,593
Northumbrian Water Group PLC (c)		40,932		113,102
Pennon Group PLC (c)		8,505		143,535
Severn Trent PLC (c)		1,653		27,756
United Utilities PLC (c)		7,179		75,689
United Utilities PLC, Class A (c)		11,165		79,580
				508,255
				1,714,306
UNITED STATES (34.5%)
Electric Utility (7.7%)
AES Corp. (b)		2,220		24,198
Dominion Resources, Inc.		1,191		76,605
Duke Energy Corp.		6,950		170,484
Edison International		921		28,091
Entergy Corp.		862		56,340
PPL Corp.		2,872		149,344
Southern Co. (The)		374		11,815
				516,877
Gas & Electric Utility (9.0%)
Exelon Corp.		5,582		221,159
Questar Corp.		2,948		141,504
TXU Corp.		3,918		239,860
				602,523
Gas Utility (0.8%)
FirstEnergy Corp.		1,285		53,109
Oil & Gas Utility (3.8%)
ConocoPhillips		1,494		125,959
EOG Resources, Inc.		1,959		130,391
				256,350
Telecommunications (13.2%)
AT&T Corp.		2,939		50,286
BellSouth Corp.		3,401		90,705
Nextel Communications, Inc., Class A (b)		4,273		113,192
SBC Communications, Inc.		7,153		180,685
Sprint Corp.		2,499		52,354
Verizon Communications, Inc.		10,150		396,864
				884,086
				2,312,945
Total Common Stocks				6,670,277
Participation Notes (0.3%)
United States (0.3%)
Tobacco (0.3%)
National Thermal (b) (c)	$	15,300		20,655
Total Participation Notes				20,655
Total Investments (Cost $6,148,096) (a) — 99.6%				6,690,932
Other assets in excess of liabilities — 0.4%				28,331
NET ASSETS — 100.0%			$	6,719,263

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Non-income producing securities.
(c)	Fair Valued Security.

See notes to financial statements.

36 Annual Report 2004

Statements of Assets and Liabilities

October 31, 2004

			Gartmore Global			Gartmore Global			Gartmore Global			Gartmore Global
			Financial			Health			Natural			Technology and
			Services Fund			Sciences Fund			Resources Fund			Communications Fund
Assets:
Investments, at value (cost $5,609,392; $13,640,485; $3,071,546; $8,100,759; and $6,148,096; respectively)			$	5,998,806		$	13,749,132		$	3,319,894		$	8,669,381
Repurchase agreements, at cost				309,905			2,394,173			96,408			182,647
		Total Investments		6,308,711			16,143,305			3,416,302			8,852,028
Foreign currency, at value (cost $2; $0; $0; $176,570 and $13; respectively)				2			—			—			176,384
Interest and dividends receivable				7,236			8,021			1,513			2,139
Receivable for investments sold				206,910			1,586,550			236,896			1,302,504
Receivable from adviser				6,615			4,923			8,042			5,916
Reclaims receivable				2,253			—			—			—
Prepaid expenses and other assets				12,790			11,766			40,125			28,672
		Total Assets		6,544,517			17,754,565			3,702,878			9,478,262
Liabilities:
Payable to custodian				—			—			—			—
Payable for investments purchased				195,597			2,258,385			199,528			741,805
Unrealized depreciation on forward foreign currency contracts				—			—			—			—
Payable for return of collateral received for securities on loan				—			779,449			—			889,381
Accrued expenses and other payables
	Investment advisory fees			4,761			11,359			2,636			6,292
	Fund administration and transfer agent fees			3,610			2,957			1,929			2,206
	Distribution fees			2,316			3,981			23			1,581
	Administrative servicing fees			11			1,983			6			668
	Other			447			673			4,964			1,800
		Total Liabilities		206,742			3,058,787			209,086			1,643,733
Net Assets			$	6,337,775		$	14,695,778		$	3,493,792		$	8,723,910
Represented by:
Capital			$	5,507,978		$	14,711,824		$	3,114,692		$	15,064,701
Accumulated net investment income (loss)				3,066			—			1,052			—
Accumulated net realized gains (losses) from investment and foreign currency transactions				437,062			(124,693	)		129,700			(6,909,227	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies				389,669			108,647			248,348			568,436
Net Assets			$	6,337,775		$	14,695,778		$	3,493,792		$	8,723,910
Net Assets:
Class A Shares			$	2,456,561		$	6,143,564		$	107,371		$	2,991,296
Class B Shares				1,071,922			1,076,058			1,121			1,063,754
Class C Shares				1,087,941			2,092,232			6,128			78,682
Class R Shares				1,079			977			1,123			923
Institutional Service Class Shares				1,045,800			4,978,656			1,125			4,357,906
Institutional Class Shares				674,472			404,291			3,376,924			231,349
Total			$	6,337,775		$	14,695,778		$	3,493,792		$	8,723,910
Shares outstanding (unlimited number of shares authorized):
Class A Shares				196,644			612,196			9,557			850,683
Class B Shares				87,117			110,037			100			312,404
Class C Shares				88,425			213,838			546			22,934
Class R Shares				88			100			100			270
Institutional Service Class Shares				83,312			491,321			100			1,219,443
Institutional Class Shares				53,739			39,865			300,526			64,677
Total				509,325			1,467,357			310,929			2,470,411
Net asset value:
Class A Shares			$	12.49		$	10.04		$	11.23		$	3.52
Class B Shares (a)			$	12.30		$	9.78		$	11.21		$	3.41
Class C Shares (b)			$	12.30		$	9.78		$	11.21		$	3.43
Class R Shares			$	12.31		$	9.81		$	11.22		$	3.42
Institutional Service Class Shares			$	12.55		$	10.13		$	11.23		$	3.57
Institutional Class Shares			$	12.55		$	10.14		$	11.24		$	3.58
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent):
Class A Shares			$	13.25		$	10.65		$	11.92		$	3.73
Maximum Sales Charge — Class A Shares				5.75	%		5.75	%		5.75	%		5.75	%

[Additional columns below]

[Continued from above table, first column(s) repeated]

			Gartmore Global
			Utilities Fund
Assets:
Investments, at value (cost $5,609,392; $13,640,485; $3,071,546; $8,100,759; and $6,148,096; respectively)			$	6,690,932
Repurchase agreements, at cost				—
		Total Investments		6,690,932
Foreign currency, at value (cost $2; $0; $0; $176,570 and $13; respectively)				13
Interest and dividends receivable				17,251
Receivable for investments sold				338,896
Receivable from adviser				6,361
Reclaims receivable				527
Prepaid expenses and other assets				12,389
		Total Assets		7,066,369
Liabilities:
Payable to custodian				55,897
Payable for investments purchased				278,581
Unrealized depreciation on forward foreign currency contracts				699
Payable for return of collateral received for securities on loan				—
Accrued expenses and other payables
	Investment advisory fees			3,842
	Fund administration and transfer agent fees			3,563
	Distribution fees			3,896
	Administrative servicing fees			6
	Other			622
		Total Liabilities		347,106
Net Assets			$	6,719,263
Represented by:
Capital			$	6,047,417
Accumulated net investment income (loss)				9,746
Accumulated net realized gains (losses) from investment and foreign currency transactions				119,535
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies				542,565
Net Assets			$	6,719,263
Net Assets:
Class A Shares			$	1,190,423
Class B Shares				885,344
Class C Shares				3,555,898
Class R Shares				1,182
Institutional Service Class Shares				836,727
Institutional Class Shares				249,689
Total			$	6,719,263
Shares outstanding (unlimited number of shares authorized):
Class A Shares				109,481
Class B Shares				82,330
Class C Shares				331,011
Class R Shares				110
Institutional Service Class Shares				76,698
Institutional Class Shares				22,885
Total				622,515
Net asset value:
Class A Shares			$	10.87
Class B Shares (a)			$	10.75
Class C Shares (b)			$	10.74
Class R Shares			$	10.78
Institutional Service Class Shares			$	10.91
Institutional Class Shares			$	10.91
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent):
Class A Shares			$	11.53
Maximum Sales Charge — Class A Shares				5.75	%

(a)	For Class B shares, the redemption price per share varies by length of time shares are held.
(b)	For Class C shares, the redemption price per share is reduced by 1.00% for shares held less than one year.

See notes to financial statements.

2004 Annual Report 37

Sector Series

Statements of Operations

For the Year Ended October 31, 2004

			Gartmore Global			Gartmore Global			Gartmore			Gartmore Global			Gartmore Global
			Financial Services			Health Sciences			Global Natural			Technology and			Utilities
			Fund			Fund			Resources Fund (a)			Communications Fund			Fund
INVESTMENT INCOME:
Interest income			$	2,892		$	10,003		$	855		$	3,094		$	1,015
Dividend income (net of foreign withholding tax of $10,582; $0; $0; $35 and $7,178; respectively)				145,076			102,307			16,097			21,537			102,322
	Income from securities lending			—			62			—			—			—
	Total Income			147,968			112,372			16,952			24,631			103,337
Expenses:
Investment advisory fees				54,371			117,729			9,752			91,528			29,771
Fund administration and transfer agent fees				13,020			17,434			2,937			15,818			11,937
Distribution fees Class A				5,961			13,179			26			8,376			2,054
Distribution fees Class B				10,228			10,609			4			11,262			7,486
Distribution fees Class C				10,131			5,316			7			694			15,719
Distribution fees Class R				3			3			1			3			3
Administrative servicing fees Class A				89			4,908			5			1,991			24
Administrative servicing fees Class R				2			2			1			2			2
Administrative servicing fees Institutional Service Class				—			10,829			—			10,860			—
Registration and filing fees				50,441			48,168			11,635			44,524			49,546
Printing fees				855			2,025			1,900			4,806			463
Other				2,817			5,377			9,808			8,112			3,379
	Total expenses before reimbursed expenses			147,918			235,579			36,076			197,976			120,384
Expenses reimbursed				(42,529	)		(37,526	)		(21,945	)		(29,954	)		(47,596	)
		Total Expenses		105,389			198,053			14,131			168,022			72,788
Net Investment Income (Loss)				42,579			(85,681	)		2,821			(143,391	)		30,549
REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) on investment transactions				459,094			43,803			129,700			(1,128,733	)		867,401
Net realized gains (losses) on foreign currency transactions				(3,489	)		(1,962	)		—			(1,070	)		(7,922	)
Net realized gains (losses) on investment and foreign currency transactions				455,605			41,841			129,700			(1,129,803	)		859,479
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies				203,356			127,705			248,348			176,659			302,803
Net realized/unrealized gains (losses) on investments and foreign currencies				658,961			169,546			378,048			(953,144	)		1,162,282
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS			$	701,540		$	83,865		$	380,869		$	(1,096,535	)	$	1,192,831

(a) For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

38 Annual Report 2004

Statements of Changes in Net Assets

	Gartmore Global						Gartmore Global						Gartmore Global
	Financial Services Fund						Health Sciences Fund						Natural Resources Fund
	Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
	October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003			October 31, 2004 (a)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)	$	42,579		$	15,765		$	(85,681	)	$	(47,261	)	$	2,821
Net realized gains (losses) on investment and foreign currency transactions		455,605			401,100			41,841			1,313,790			129,700
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies		203,356			475,644			127,705			(129,330	)		248,348
Change in net assets resulting from operations		701,540			892,509			83,865			1,137,199			380,869
Distributions to Class A Shareholders from:
Net investment income		(19,336	)		(1,596	)		—			—			(87	)
Net realized gains on investments		(148,606	)		—			(318,186	)		—			—
Distributions to Class B Shareholders from:
Net investment income		(2,631	)		(179	)		—			—			—
Net realized gains on investments		(86,510	)		—			(75,061	)		—			—
Distributions to Class C Shareholders from:
Net investment income		(2,660	)		(177	)		—			—			—
Net realized gains on investments		(83,988	)		—			(13,473	)		—			—
Distributions to Class R Shareholders from:
Net investment income		(6	) (b)		—			—			—			—
Distributions to Institutional Service Class Shareholders from:
Net investment income		(9,744	)		(2,031	)		—			—			(2	)
Net realized gains on investments		(83,737	)		—			(300,573	)		—			—
Distributions to Institutional Class Shareholders from:
From net investment income		(1,601	) (a)		—			—			—			(5,728	)
Change in net assets from shareholder distributions		(438,819	)		(3,983	)		(707,293	)		—			(5,817	)
Change in net assets from capital transactions		2,165,480			337,681			6,457,494			3,994,720			3,118,740
Change in net assets		2,428,201			1,226,207			5,834,066			5,131,919			3,493,792
Net Assets:
Beginning of period		3,909,574			2,683,367			8,861,712			3,729,793			—
End of period	$	6,337,775		$	3,909,574		$	14,695,778		$	8,861,712		$	3,493,792

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.

See notes to financial statements.

2004 Annual Report 39

Sector Series

Statements of Changes in Net Assets

	Gartmore Global Technology and
	Communications Fund						Gartmore Global Utilities Fund
	Year Ended			Year Ended			Year Ended			Year Ended
	October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)	$	(143,391	)	$	(72,489	)	$	30,549		$	16,198
Net realized gains (losses) on investment and foreign currency transactions		(1,129,803	)		1,780,381			859,479			(26,745	)
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies		176,659			348,683			302,803			350,425
Change in net assets resulting from operations		(1,096,535	)		2,056,575			1,192,831			339,878
Distributions to Class A Shareholders from:
Net investment income		—			—			(3,515	)		(4,041	)
Distributions to Class B Shareholders from:
Net investment income		—			—			(480	)		(2,128	)
Distributions to Class C Shareholders from:
Net investment income		—			—			(4,370	)		(2,116	)
Distributions to Class R Shareholders from:
Net investment income		—			—			(3	) (a)		—
Distributions to Institutional Service Class Shareholders from:
Net investment income		—			—			(3,949	)		(4,846	)
Distributions to Institutional Class Shareholders from:
From net investment income		—			—			(557	) (b)		—
Change in net assets from shareholder distributions		—			—			(12,874	)		(13,131	)
Change in net assets from capital transactions		275,909			4,334,111			2,923,928			111,153
Change in net assets		(820,626	)		6,390,686			4,103,885			437,900
Net Assets:
Beginning of period		9,544,536			3,153,850			2,615,378			2,177,478
End of period	$	8,723,910		$	9,544,536		$	6,719,263		$	2,615,378

(a)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(b)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

40 Annual Report 2004

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Gartmore Global Financial Services Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized			Total
	Value,		Investment			Gains			from
	Beginning of		Income			(Losses) on			Investment
	Period		(Loss)			Investments			Activities
Class A Shares
Period Ended October 31, 2002 (d)	$	10.00		0.04			(1.12	)		(1.08	)
Year Ended October 31, 2003	$	8.92		0.07			2.83			2.90
Year Ended October 31, 2004	$	11.80		0.12			1.77			1.89
Class B Shares
Period Ended October 31, 2002 (d)	$	10.00		(0.02	)		(1.11	)		(1.13	)
Year Ended October 31, 2003	$	8.87		0.01			2.79			2.80
Year Ended October 31, 2004	$	11.67		0.02			1.75			1.77
Class C Shares
Period Ended October 31, 2002 (d)	$	10.00		(0.02	)		(1.11	)		(1.13	)
Year Ended October 31, 2003	$	8.87		0.01			2.79			2.80
Year Ended October 31, 2004	$	11.67		0.02			1.75			1.77
Class R Shares
Period Ended October 31, 2004 (g)	$	11.47		0.04			0.86			0.90
Institutional Service Class Shares
Period Ended October 31, 2002 (d)	$	10.00		0.06			(1.12	)		(1.06	)
Year Ended October 31, 2003	$	8.94		0.11			2.83			2.94
Year Ended October 31, 2004	$	11.85		0.15			1.78			1.93
Institutional Class Shares
Period Ended October 31, 2004 (h)	$	12.22		0.02			0.34			0.36

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net			Net						Net Asset
	Investment			Realized			Total			Value, End		Total
	Income			Gains			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2002 (d)		—			—			—		$	8.92		(10.78%	) (e)
Year Ended October 31, 2003		(0.02	)		—			(0.02	)	$	11.80		32.59%
Year Ended October 31, 2004		(0.09	)		(1.11	)		(1.20	)	$	12.49		17.01%
Class B Shares
Period Ended October 31, 2002 (d)		—			—			—		$	8.87		(11.30%	) (e)
Year Ended October 31, 2003		—			—			—		$	11.67		31.60%
Year Ended October 31, 2004		(0.03	)		(1.11	)		(1.14	)	$	12.30		16.15%
Class C Shares
Period Ended October 31, 2002 (d)		—			—			—		$	8.87		(11.30%	) (e)
Year Ended October 31, 2003		—			—			—		$	11.67		31.60%
Year Ended October 31, 2004		(0.03	)		(1.11	)		(1.14	)	$	12.30		16.16%
Class R Shares
Period Ended October 31, 2004 (g)		(0.06	)		—			(0.06	)	$	12.31		7.89%	(e)
Institutional Service Class Shares
Period Ended October 31, 2002 (d)		—			—			—		$	8.94		(10.57%	) (e)
Year Ended October 31, 2003		(0.03	)		—			(0.03	)	$	11.85		32.95%
Year Ended October 31, 2004		(0.12	)		(1.11	)		(1.23	)	$	12.55		17.25%
Institutional Class Shares
Period Ended October 31, 2004 (h)		(0.03	)		—			(0.03	)	$	12.55		2.96%	(e)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2002 (d)	$	675		1.66%	(f)		0.47%	(f)		3.76%	(f)		(1.63%	) (f)		102.39%
Year Ended October 31, 2003	$	1,228		1.65%			0.81%			2.78%			(0.33%	)		256.82%
Year Ended October 31, 2004	$	2,457		1.65%			1.06%			2.41%			0.31%			129.61%
Class B Shares
Period Ended October 31, 2002 (d)	$	672		2.38%	(f)		(0.25%	) (f)		4.51%	(f)		(2.38%	) (f)		102.39%
Year Ended October 31, 2003	$	906		2.40%			0.08%			3.67%			(1.20%	)		256.82%
Year Ended October 31, 2004	$	1,072		2.40%			0.20%			3.14%			(0.54%	)		129.61%
Class C Shares
Period Ended October 31, 2002 (d)	$	665		2.38%	(f)		(0.25%	) (f)		4.51%	(f)		(2.38%	) (f)		102.39%
Year Ended October 31, 2003	$	883		2.40%			0.08%			3.68%			(1.20%	)		256.82%
Year Ended October 31, 2004	$	1,088		2.40%			0.20%			3.15%			(0.55%	)		129.61%
Class R Shares
Period Ended October 31, 2004 (g)	$	1		1.98%	(f)		0.46%	(f)		2.74%	(f)		(0.30%	) (f)		129.61%
Institutional Service Class Shares
Period Ended October 31, 2002 (d)	$	671		1.40%	(f)		0.73%	(f)		3.51%	(f)		(1.38%	) (f)		102.39%
Year Ended October 31, 2003	$	892		1.40%			1.08%			2.68%			(0.20%	)		256.82%
Year Ended October 31, 2004	$	1,046		1.40%			1.20%			2.14%			0.46%			129.61%
Institutional Class Shares
Period Ended October 31, 2004 (h)	$	674		1.40%	(f)		0.53%	(f)		2.30%	(f)		(0.37%	) (f)		129.61%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratio would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from December 18, 2001 (commencement of operations) through October 31, 2002.
(e)	Not annualized.
(f)	Annualized.
(g)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(h)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

2004 Annual Report 41

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Sector Series

Gartmore Global Health Sciences Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized			Total
	Value,		Investment			Gains			from
	Beginning		Income			(Losses) on			Investment
	of Period		(Loss)			Investments			Activities
Class A Shares
Period Ended October 31, 2001 (d)	$	10.00		(0.03	)		(0.63	)		(0.66	)
Year Ended October 31, 2002	$	9.33		(0.06	)		(0.97	)		(1.03	)
Year Ended October 31, 2003	$	8.30		(0.05	)		1.99			1.94
Year Ended October 31, 2004	$	10.24		(0.06	)		0.70			0.64
Class B Shares
Period Ended October 31, 2001 (d)	$	10.00		(0.09	)		(0.62	)		(0.71	)
Year Ended October 31, 2002	$	9.29		(0.15	)		(0.93	)		(1.08	)
Year Ended October 31, 2003	$	8.21		(0.13	)		1.98			1.85
Year Ended October 31, 2004	$	10.06		(0.13	)		0.69			0.56
Class C Shares
Period Ended October 31, 2002 (e)	$	7.92		(0.01	)		0.30			0.29
Year Ended October 31, 2003	$	8.21		(0.12	)		1.98			1.86
Year Ended October 31, 2004	$	10.07		(0.04	)		0.59			0.55
Class R Shares
Period Ended October 31, 2004 (h)	$	10.04		(0.09	)		(0.14	)		(0.23	)
Institutional Service Class Shares
Period Ended October 31, 2001 (d)	$	10.00		(0.01	)		(0.62	)		(0.63	)
Year Ended October 31, 2002	$	9.36		(0.04	)		(0.97	)		(1.01	)
Year Ended October 31, 2003	$	8.35		(0.04	)		2.01			1.97
Year Ended October 31, 2004	$	10.32		(0.06	)		0.71			0.65
Institutional Class Shares
Period Ended October 31, 2004 (i)	$	10.92		(0.01	)		(0.77	)		(0.78	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net									Net Asset
	Realized			Return of			Total			Value, End		Total
	Gains			Capital			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2001 (d)		—			(0.01	)		(0.01	)	$	9.33		(6.61%	) (f)
Year Ended October 31, 2002		—			—			—		$	8.30		(11.04%	)
Year Ended October 31, 2003		—			—			—		$	10.24		23.37%
Year Ended October 31, 2004		(0.84	)		—			(0.84	)	$	10.04		6.26%
Class B Shares
Period Ended October 31, 2001 (d)		—			—			—		$	9.29		(7.10%	) (f)
Year Ended October 31, 2002		—			—			—		$	8.21		(11.63%	)
Year Ended October 31, 2003		—			—			—		$	10.06		22.53%
Year Ended October 31, 2004		(0.84	)		—			(0.84	)	$	9.78		5.52%
Class C Shares
Period Ended October 31, 2002 (e)		—			—			—		$	8.21		3.66%	(f)
Year Ended October 31, 2003		—			—			—		$	10.07		22.66%
Year Ended October 31, 2004		(0.84	)		—			(0.84	)	$	9.78		5.52%
Class R Shares
Period Ended October 31, 2004 (h)		—			—			—		$	9.81		(2.29%	) (f)
Institutional Service Class Shares
Period Ended October 31, 2001 (d)		—			(0.01	)		(0.01	)	$	9.36		(6.25%	) (f)
Year Ended October 31, 2002		—			—			—		$	8.35		(10.79%	)
Year Ended October 31, 2003		—			—			—		$	10.32		23.59%
Year Ended October 31, 2004		(0.84	)		—			(0.84	)	$	10.13		6.30%
Institutional Class Shares
Period Ended October 31, 2004 (i)		—			—			—		$	10.14		(7.14%	) (f)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2001 (d)	$	779		1.53%	(g)		(0.55%	) (g)		6.84%	(g)		(5.86%	) (g)		754.05%
Year Ended October 31, 2002	$	1,538		1.60%			(0.99%	)		3.10%			(2.49%	)		893.80%
Year Ended October 31, 2003	$	4,087		1.57%			(0.75%	)		2.29%			(1.47%	)		570.16%
Year Ended October 31, 2004	$	6,144		1.59%			(0.67%	)		1.90%			(0.98%	)		388.52%
Class B Shares
Period Ended October 31, 2001 (d)	$	774		2.13%	(g)		(1.15%	) (g)		7.61%	(g)		(6.63%	) (g)		754.05%
Year Ended October 31, 2002	$	730		2.28%			(1.71%	)		4.00%			(3.43%	)		893.80%
Year Ended October 31, 2003	$	899		2.25%			(1.41%	)		3.06%			(2.22%	)		570.16%
Year Ended October 31, 2004	$	1,076		2.25%			(1.32%	)		2.56%			(1.63%	)		388.52%
Class C Shares
Period Ended October 31, 2002 (e)	$	58		2.25%	(g)		(1.69%	) (g)		2.80%	(g)		(2.24%	) (g)		893.80%
Year Ended October 31, 2003	$	130		2.25%			(1.45%	)		2.96%			(2.16%	)		570.16%
Year Ended October 31, 2004	$	2,092		2.25%			(1.44%	)		2.57%			(1.76%	)		388.52%
Class R Shares
Period Ended October 31, 2004 (h)	$	1		1.88%	(g)		(1.03%	) (g)		2.22%	(g)		(1.37%	) (g)		388.52%
Institutional Service Class Shares
Period Ended October 31, 2001 (d)	$	781		1.10%	(g)		(0.13%	) (g)		6.59%	(g)		(5.62%	) (g)		754.05%
Year Ended October 31, 2002	$	1,403		1.27%			(0.66%	)		2.85%			(2.24%	)		893.80%
Year Ended October 31, 2003	$	3,746		1.42%			(0.61%	)		2.12%			(1.31%	)		570.16%
Year Ended October 31, 2004	$	4,979		1.46%			(0.54%	)		1.76%			(0.84%	)		388.52%
Institutional Class Shares
Period Ended October 31, 2004 (i)	$	404		1.25%	(g)		(0.25%	) (g)		1.54%	(g)		(0.54%	) (g)		388.52%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratio would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from December 29, 2000 (commencement of operations) through October 31, 2001.
(e)	For the period from September 23, 2002 (commencement of operations) through October 31, 2002.
(f)	Not annualized.
(g)	Annualized.
(h)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(i)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

42 Annual Report 2004

Gartmore Global Natural Resources Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized		Total
	Value,		Investment			Gains		from
	Beginning		Income			(Losses) on		Investment
	of Period		(Loss)			Investments		Activities
Class A Shares
Period Ended October 31, 2004 (d)	$	10.00		—			1.25		1.25
Class B Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.03	)		1.24		1.21
Class C Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.02	)		1.23		1.21
Class R Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.02	)		1.24		1.22
Institutional Service Class Shares
Period Ended October 31, 2004 (d)	$	10.00		0.02			1.23		1.25
Institutional Class Shares
Period Ended October 31, 2004 (d)	$	10.00		0.01			1.25		1.26

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net						Net Asset
	Investment			Total			Value, End		Total
	Income			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2004 (d)		(0.02	)		(0.02	)	$	11.23		12.58%	(e)
Class B Shares
Period Ended October 31, 2004 (d)		—			—		$	11.21		12.10%	(e)
Class C Shares
Period Ended October 31, 2004 (d)		—			—		$	11.21		12.20%	(e)
Class R Shares
Period Ended October 31, 2004 (d)		—	(g)		—		$	11.22		12.22%	(e)
Institutional Service Class Shares
Period Ended October 31, 2004 (d)		(0.02	)		(0.02	)	$	11.23		12.50%	(e)
Institutional Class Shares
Period Ended October 31, 2004 (d)		(0.02	)		(0.02	)	$	11.24		12.60%	(e)

[Additional columns below]

[Continued from above table, first column(s) repeated]

Ratios / Supplemental Data

Ratio of Net

Ratio of Net

Ratio of

Investment

Investment

Expenses

Income (Loss)

Net Assets

Ratio of

Income

(Prior to

(Prior to

at End of

Expenses to

(Loss)

Reimbursements)

Reimbursements)

Period

Average

to Average

to Average

to Average

Portfolio

(000s)

Net Assets

Net Assets

Net Assets (b)

Net Assets (b)

Turnover (c)

Class A Shares

Period Ended October 31, 2004 (d)

$

107

1.58%

(f)

(1.05%

) (f)

4.11%

(f)

(3.59%

) (f)

48.29%

Class B Shares

Period Ended October 31, 2004 (d)

$

1

2.30%

(f)

(0.88%

) (f)

4.44%

(f)

(3.02%

) (f)

48.29%

Class C Shares

Period Ended October 31, 2004 (d)

$

6

2.30%

(f)

(1.29%

) (f)

4.77%

(f)

(3.76%

) (f)

48.29%

Class R Shares

Period Ended October 31, 2004 (d)

$

1

1.94%

(f)

(0.53%

) (f)

3.91%

(f)

(2.51%

) (f)

48.29%

Institutional Service Class Shares

Period Ended October 31, 2004 (d)

$

1

1.39%

(f)

0.17%

(f)

3.56%

(f)

(2.00%

) (f)

48.29%

Institutional Class Shares

Period Ended October 31, 2004 (d)

$

3,377

1.30%

(f)

0.27%

(f)

3.32%

(f)

(1.74%

) (f)

48.29%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratio would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(e)	Not annualized.
(f)	Annualized.
(g)	Amount is less than $0.005.

See notes to financial statements.

2004 Annual Report 43

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Sector Series

Gartmore Global Technology and Communications Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized
	Value,		Investment			Gains			Total from
	Beginning of		Income			(Losses) on			Investment
	Period		(Loss)			Investments			Activities
Class A Shares
Period Ended October 31, 2000 (d)	$	10.00		(0.02	)		1.14			1.12
Year Ended October 31, 2001	$	11.12		(0.06	)		(6.41	)		(6.47	)
Year Ended October 31, 2002	$	4.02		(0.04	)		(1.35	)		(1.39	)
Year Ended October 31, 2003	$	2.63		(0.04	)		1.27			1.23
Year Ended October 31, 2004	$	3.86		(0.06	)		(0.28	)		(0.34	)
Class B Shares
Period Ended October 31, 2000 (d)	$	10.00		(0.06	)		1.15			1.09
Year Ended October 31, 2001	$	11.09		(0.09	)		(6.40	)		(6.49	)
Year Ended October 31, 2002	$	3.97		(0.07	)		(1.32	)		(1.39	)
Year Ended October 31, 2003	$	2.58		(0.06	)		1.25			1.19
Year Ended October 31, 2004	$	3.77		(0.08	)		(0.28	)		(0.36	)
Class C Shares
Period Ended October 31, 2001 (e)	$	5.37		(0.02	)		(1.36	)		(1.38	)
Year Ended October 31, 2002	$	3.99		(0.08	)		(1.31	)		(1.39	)
Year Ended October 31, 2003	$	2.60		(0.06	)		1.25			1.19
Year Ended October 31, 2004	$	3.79		(0.06	)		(0.30	)		(0.36	)
Class R Shares
Period Ended October 31, 2004 (i)	$	3.70		(0.05	)		(0.23	)		(0.28	)
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	10.00		(0.03	)		1.15			1.12
Year Ended October 31, 2001	$	11.12		(0.04	)		(6.39	)		(6.43	)
Year Ended October 31, 2002	$	4.06		(0.03	)		(1.37	)		(1.40	)
Year Ended October 31, 2003	$	2.66		(0.04	)		1.30			1.26
Year Ended October 31, 2004	$	3.92		(0.06	)		(0.29	)		(0.35	)
Institutional Class Shares
Period Ended October 31, 2004 (j)	$	3.81		(0.01	)		(0.22	)		(0.23	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net						Net Asset
	Realized			Total			Value, End		Total
	Gains			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2000 (d)		—			—		$	11.12		11.20%	(f)
Year Ended October 31, 2001		(0.63	)		(0.63	)	$	4.02		(60.93%	)
Year Ended October 31, 2002		—			—		$	2.63		(34.58%	) (h)
Year Ended October 31, 2003		—			—		$	3.86		46.77%
Year Ended October 31, 2004		—			—		$	3.52		(8.81%	)
Class B Shares
Period Ended October 31, 2000 (d)		—			—		$	11.09		10.90%	(f)
Year Ended October 31, 2001		(0.63	)		(0.63	)	$	3.97		(61.30%	)
Year Ended October 31, 2002		—			—		$	2.58		(35.01%	) (h)
Year Ended October 31, 2003		—			—		$	3.77		46.12%
Year Ended October 31, 2004		—			—		$	3.41		(9.55%	)
Class C Shares
Period Ended October 31, 2001 (e)		—			—		$	3.99		(25.70%	) (f)
Year Ended October 31, 2002		—			—		$	2.60		(34.84%	) (h)
Year Ended October 31, 2003		—			—		$	3.79		45.77%
Year Ended October 31, 2004		—			—		$	3.43		(9.50%	)
Class R Shares
Period Ended October 31, 2004 (i)		—			—		$	3.42		(7.57%	) (f)
Institutional Service Class Shares
Period Ended October 31, 2000 (d)		—			—		$	11.12		11.20%	(f)
Year Ended October 31, 2001		(0.63	)		(0.63	)	$	4.06		(60.58%	)
Year Ended October 31, 2002		—			—		$	2.66		(34.48%	) (h)
Year Ended October 31, 2003		—			—		$	3.92		47.37%
Year Ended October 31, 2004		—			—		$	3.57		(8.93%	)
Institutional Class Shares
Period Ended October 31, 2004 (j)		—			—		$	3.58		(6.04%	) (f)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss) to			Reimbursements)			Reimbursements)
	Period		to Average			Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2000 (d)	$	4,602		1.73%	(g)		(1.07%	) (g)		4.43%	(g)		(3.77%	) (g)		149.08%
Year Ended October 31, 2001	$	2,038		1.73%			(1.05%	)		6.38%			(5.70%	)		922.33%
Year Ended October 31, 2002	$	1,514		1.69%			(1.37%	)		2.56%			(2.24%	)		944.01%
Year Ended October 31, 2003	$	3,303		1.69%			(1.38%	)		2.96%			(2.64%	)		1136.72%
Year Ended October 31, 2004	$	2,991		1.71%			(1.45%	)		2.02%			(1.76%	)		722.91%
Class B Shares
Period Ended October 31, 2000 (d)	$	2,275		2.33%	(g)		(1.69%	) (g)		5.18%	(g)		(4.54%	) (g)		149.08%
Year Ended October 31, 2001	$	1,137		2.33%			(1.66%	)		7.21%			(6.54%	)		922.33%
Year Ended October 31, 2002	$	780		2.38%			(2.02%	)		3.32%			(2.96%	)		944.01%
Year Ended October 31, 2003	$	1,196		2.40%			(2.07%	)		3.73%			(3.40%	)		1136.72%
Year Ended October 31, 2004	$	1,064		2.40%			(2.14%	)		2.72%			(2.46%	)		722.91%
Class C Shares
Period Ended October 31, 2001 (e)	$	29		2.33%	(g)		(1.79%	) (g)		9.94%	(g)		(9.40%	) (g)		922.33%
Year Ended October 31, 2002	$	17		2.38%			(1.83%	)		3.40%			(2.85%	)		944.01%
Year Ended October 31, 2003	$	39		2.40%			(2.10%	)		3.65%			(3.35%	)		1136.72%
Year Ended October 31, 2004	$	79		2.40%			(2.14%	)		2.73%			(2.47%	)		722.91%
Class R Shares
Period Ended October 31, 2004 (i)	$	1		1.99%	(g)		(1.75%	) (g)		2.28%	(g)		(2.04%	) (g)		722.91%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	1,854		1.40%	(g)		(0.76%	) (g)		4.17%	(g)		(3.53%	) (g)		149.08%
Year Ended October 31, 2001	$	730		1.40%			(0.70%	)		5.70%			(5.00%	)		922.33%
Year Ended October 31, 2002	$	843		1.41%			(1.37%	)		2.08%			(2.04%	)		944.01%
Year Ended October 31, 2003	$	5,006		1.58%			(1.29%	)		2.65%			(2.36%	)		1136.72%
Year Ended October 31, 2004	$	4,358		1.62%			(1.36%	)		1.92%			(1.67%	)		722.91%
Institutional Class Shares
Period Ended October 31, 2004 (j)	$	231		1.40%	(g)		(1.05%	) (g)		1.92%	(g)		(1.57%	) (g)		722.91%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratio would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from June 30, 2000 (commencement of operations) through October 31, 2000.
(e)	For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(f)	Not annualized.
(g)	Annualized.
(h)	The total returns shown include losses realized on the disposal of investments that were reimbursed by the adviser, which otherwise would have reduced total returns by 0.54%, 0.60%, 0.89%, and 0.38% for Class A, Class B, Class C and Institutional Service Class shares, respectively.
(i)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(j)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

44 Annual Report 2004

Gartmore Global Utilities Fund

			Investment Activities
					Net Realized
					and
	Net Asset		Net		Unrealized			Total
	Value,		Investment		Gains			from
	Beginning of		Income		(Losses) on			Investment
	Period		(Loss)		Investments			Activities
Class A Shares
Period Ended October 31, 2002 (d)	$	10.00		0.11		(2.85	)		(2.74	)
Year Ended October 31, 2003	$	7.20		0.07		1.06			1.13
Year Ended October 31, 2004	$	8.28		0.09		2.54			2.63
Class B Shares
Period Ended October 31, 2002 (d)	$	10.00		0.05		(2.84	)		(2.79	)
Year Ended October 31, 2003	$	7.18		0.02		1.05			1.07
Year Ended October 31, 2004	$	8.22		0.04		2.50			2.54
Class C Shares
Period Ended October 31, 2002 (d)	$	10.00		0.05		(2.84	)		(2.79	)
Year Ended October 31, 2003	$	7.18		0.02		1.05			1.07
Year Ended October 31, 2004	$	8.22		0.03		2.51			2.54
Class R Shares
Period Ended October 31, 2004 (g)	$	9.14		0.08		1.58			1.66
Institutional Service Class Shares
Period Ended October 31, 2002 (d)	$	10.00		0.13		(2.85	)		(2.72	)
Year Ended October 31, 2003	$	7.21		0.09		1.06			1.15
Year Ended October 31, 2004	$	8.30		0.13		2.53			2.66
Institutional Class Shares
Period Ended October 31, 2004 (h)	$	9.75		0.03		1.15			1.18

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net						Net Asset
	Investment			Total			Value, End		Total
	Income			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2002 (d)		(0.06	)		(0.06	)	$	7.20		(27.46%	) (e)
Year Ended October 31, 2003		(0.05	)		(0.05	)	$	8.28		15.80%
Year Ended October 31, 2004		(0.04	)		(0.04	)	$	10.87		31.81%
Class B Shares
Period Ended October 31, 2002 (d)		(0.03	)		(0.03	)	$	7.18		(27.93%	) (e)
Year Ended October 31, 2003		(0.03	)		(0.03	)	$	8.22		14.92%
Year Ended October 31, 2004		(0.01	)		(0.01	)	$	10.75		30.86%
Class C Shares
Period Ended October 31, 2002 (d)		(0.03	)		(0.03	)	$	7.18		(27.93%	) (e)
Year Ended October 31, 2003		(0.03	)		(0.03	)	$	8.22		14.92%
Year Ended October 31, 2004		(0.02	)		(0.02	)	$	10.74		30.90%
Class R Shares
Period Ended October 31, 2004 (g)		(0.02	)		(0.02	)	$	10.78		18.23%	(e)
Institutional Service Class Shares
Period Ended October 31, 2002 (d)		(0.07	)		(0.07	)	$	7.21		(27.27%	) (e)
Year Ended October 31, 2003		(0.06	)		(0.06	)	$	8.30		16.10%
Year Ended October 31, 2004		(0.05	)		(0.05	)	$	10.91		32.13%
Institutional Class Shares
Period Ended October 31, 2004 (h)		(0.02	)		(0.02	)	$	10.91		12.15%	(e)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses to			(Loss)			Reimbursements)			Reimbursements)
	Period		Average Net			to Average			to Average			to Average			Portfolio
	(000s)		Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2002 (d)	$	547		1.46%	(f)		1.46%	(f)		3.96%	(f)		(1.04%	) (f)		146.88%
Year Ended October 31, 2003	$	734		1.45%			0.96%			3.06%			(0.65%	)		112.34%
Year Ended October 31, 2004	$	1,190		1.45%			1.14%			2.70%			(0.10%	)		391.22%
Class B Shares
Period Ended October 31, 2002 (d)	$	544		2.18%	(f)		0.75%	(f)		4.71%	(f)		(1.78%	) (f)		146.88%
Year Ended October 31, 2003	$	625		2.20%			0.25%			3.89%			(1.44%	)		112.34%
Year Ended October 31, 2004	$	885		2.20%			0.41%			3.46%			(0.84%	)		391.22%
Class C Shares
Period Ended October 31, 2002 (d)	$	541		2.18%	(f)		0.75%	(f)		4.71%	(f)		(1.78%	) (f)		146.88%
Year Ended October 31, 2003	$	623		2.20%			0.25%			3.89%			(1.44%	)		112.34%
Year Ended October 31, 2004	$	3,556		2.20%			0.43%			3.33%			(0.70%	)		391.22%
Class R Shares
Period Ended October 31, 2004 (g)	$	1		1.78%	(f)		0.99%	(f)		3.14%	(f)		(0.35%	) (f)		391.22%
Institutional Service Class Shares
Period Ended October 31, 2002 (d)	$	545		1.20%	(f)		1.72%	(f)		3.71%	(f)		(0.79%	) (f)		146.88%
Year Ended October 31, 2003	$	633		1.20%			1.25%			2.89%			(0.44%	)		112.34%
Year Ended October 31, 2004	$	837		1.20%			1.41%			2.46%			0.15%			391.22%
Institutional Class Shares
Period Ended October 31, 2004 (h)	$	250		1.20%	(f)		1.02%	(f)		2.19%	(f)		0.03%	(f)		391.22%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/ reimbursements had not occurred, the ratio would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from December 18, 2001 (commencement of operations) through October 31, 2002.
(e)	Not annualized.
(f)	Annualized.
(g)	For the period from December 30, 2003 (commencement of operations) through April 30, 2004.
(h)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

2004 Annual Report 45

Leadership Series

Gartmore Mid Cap Growth Leaders Fund

(formerly Gartmore Millennium Growth Fund)

On Sept. 30, 2004, the Gartmore Millennium Growth Fund was renamed the “Gartmore Mid Cap Growth Leaders Fund.” At that point, Joseph C. O’Connor, a seasoned portfolio manager who brought 20 years experience and a focus on running mid-cap concentrated portfolios to the Fund, assumed day-to-day management of the Fund.

For the annual period ended Oct. 31, 2004, the Gartmore Mid Cap Growth Leaders Fund returned 1.95% (Class A at NAV) versus 8.77% for its benchmark, the Russell Midcap® Growth Index. For broader comparison, the average return for the Fund’s Lipper peer category of Mid-Cap Growth Funds was 5.26%.

Since assuming management duties, we have implemented a process that employs a “top-down/bottom-up” approach to identifying attractive companies with sustainable earnings growth in the industries best positioned, we believe, to benefit from the future economic environment. This process is geared to deliver a positive alpha (risk-adjusted returns largely attributed to the manager’s stock and/or sector selection) while assuming a beta—a measure of a fund’s volatility vis-à-vis its index, on average, that is not higher than the benchmark (Russell Mid Cap Growth Index).

For the full reporting period, the Fund underperformed its benchmark due to poor stock and sector selections in the telecommunications, consumer staples, consumer discretionary and, in particular, the information technology and health-care sectors. Of the Fund’s 20 worst-performing stocks, 15 were from the information technology sector and four were from the health-care sector, which, as sectors, negatively impacted the Fund’s return by -4.47% and -1.66%, respectively. The six worst-performing information technology stocks—Lexar Media, Inc.; Silicon Storage Technology, Inc.; Citadel Security Software, Inc.; PalmSource, Inc.; Digitas Inc.; and Brooks Automation, Inc., were the largest detractors to Fund performance overall.

Looking ahead, the Fund plans to achieve its investment objective of long-term capital appreciation by utilizing our process in constructing a portfolio of between 25 and 35 securities. These will be companies that the manager believes exhibit greater-than-average growth, given the economic environment. The top-down approach is a stock screening process that takes into account several macroeconomic factors and is designed to narrow the available number of investments in mid-cap stocks to several hundred potential ideas. The approach takes into consideration such macroeconomic factors as Federal Reserve policy, interest rates, inflation and the overall domestic economy. This discipline enables the manager to focus analysis on the most attractive business sectors within the overall market.

Once these “most attractive sectors” are determined, the bottom-up approach is performed on potential stock ideas by identifying individual companies with both attractive earnings potential and sustainable growth characteristics that may not be fully recognized by the market at large. Finally, a 12-month target price is established for all individual companies reviewed, with minimum hurdle rates of capital appreciation potential required before a stock will be added to the Fund.

Portfolio Manager: Joseph C. O’Connor

Class A: NMGAX

Class B: NMGBX

Class C: GMGCX

Class D: NMCGX

Class R: GMGRX

Institutional Class: GMGIX

46 Annual Report 2004

Gartmore Mid Cap Growth Leaders Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One		Five		Ten
		year		years		years
Class A 1	without sales charge2		1.95%		-6.80%		4.17%
	with sales charge3		-3.92%		-7.90%		3.55%
Class B1	without sales charge2		1.23%		-7.79%		3.48%
	with sales charge4		-3.77%		-8.09%		3.48%
Class C 1	without sales charge2		1.22%		-7.33%		3.87%
	with sales charge5		0.22%		-7.33%		3.87%
Class D 1,6	without sales charge2		2.27%		-6.46%		4.35%
	with sales charge7		-2.33%		-7.32%		3.87%
Class R 1,8			1.83%		-6.54%		4.31%
Institutional Class8,9			2.27%		-6.46%		4.35%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	These returns through May 11, 1998 include the performance of the Fund’s predecessor fund, and, for periods from May 11, 1998 to the creation of the class, include the performance of the Fund’s Class D shares. These returns were achieved prior to the creation of Class A and Class B shares (5/11/98), Class C shares (3/1/01), and Class R shares (12/31/03). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A, Class B, Class C, and Class R shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to such classes. If these other fees were reflected, the performance for Class A, Class B, Class C and Class R shares would have been lower.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
6	These returns through May 11, 1998 include the performance of the Fund’s predecessor fund.
7	A 4.50% front-end sales charge was deducted.
8	Not subject to any sales charges.
9	These returns until the creation of Institutional Class shares (6/30/04) include the performance of the Fund’s Class D shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class D shares of the Gartmore MidCap Growth Leaders, the Russell MidCap Growth Index (Russell MidCap Growth)(a), and the Consumer Price Index (CPI)(b) over a 10-year period ended 10/31/04. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The Russell MidCap Growth—an unmanaged index of the stock of medium-sized U.S. companies with a capitalization range of $1.2 billion to $9.8 billion as of June 30, 2003, gives a broad look at how the stock price of medium-sized U.S. companies have performed.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

2004 Annual Report 47

Gartmore Mid Cap Growth Leaders Fund

Leadership Series

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Mid Cap Growth Leaders Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,038	$	7.73			1.51%
	Hypothetical	1	$	1,000	$	1,017	$	7.69			1.51%
Class B	Actual		$	1,000	$	1,034	$	11.25			2.20%
	Hypothetical	1	$	1,000	$	1,014	$	11.20			2.20%
Class C	Actual		$	1,000	$	1,034	$	11.25			2.20%
	Hypothetical	1	$	1,000	$	1,014	$	11.20			2.20%
Class D	Actual		$	1,000	$	1,039	$	6.15			1.20%
	Hypothetical	1	$	1,000	$	1,019	$	6.11			1.20%
Class R	Actual		$	1,000	$	1,036	$	8.60			1.68%
	Hypothetical	1	$	1,000	$	1,017	$	8.55			1.68%
Institutional Class (a)	Actual		$	1,000	$	1,045	$	1.00	(b)		1.08%
	Hypothetical	1	$	1,000	$	999	$	0.98	(b)		1.08%

(a)	For the period from September 28, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 33/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

48 Annual Report 2004

Gartmore Mid Cap Growth Leaders Fund

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	99.0%
Commercial Paper	2.2%
Other Investments*	3.6%
Other Liabilities in excess of Assets**	-4.8%
	100.0%

*	Includes value of collateral received from securities lending.
**	Includes value of collateral owed from securities lending.

Top Industries
Computer Software & Services	15.7%
Medical Products & Services	14.5%
Semiconductors	11.0%
Financial	9.9%
Oil & Gas	7.7%
Retail	6.7%
Manufacturing	6.2%
Aerospace & Defense	5.1%
Industrial Gases	3.8%
Travel	3.5%
Other Industries	15.9%
	100.0%

Top Holdings
Cit Group, Inc.	4.9%
Quest Software, Inc.	4.5%
Gilead Sciences, Inc.	4.0%
Praxair, Inc.	3.8%
Teva Pharmaceutical Industries Ltd. ADR-IL	3.8%
Quiksilver, Inc.	3.7%
Manor Care, Inc.	3.6%
Royal Caribbean Cruises Ltd.	3.5%
Jabil Circuit, Inc.	3.5%
Hyperion Solutions Corp.	3.4%
Other Holdings	61.3%
	100.0%

2004 Annual Report 49

Leadership Series

Statement of Investments

October 31, 2004

Gartmore Mid Cap Growth Leaders Fund

Common Stocks (99.0%)
	Shares or
	Principal Amount		Value
Aerospace & Defense (5.1%)
L-3 Communications Holdings, Inc.		6,100	$	402,173
Rockwell Collins Corp.		17,200		610,084
				1,012,257
Commercial Services (3.0%)
Cendant Corp.		29,000		597,110
Computer Software & Services (15.7%)
Akamai Technologies (b)		13,165		182,335
Ask Jeeves, Inc. (b)		6,095		157,129
Business Objectives SA (b)		25,600		653,312
Hyperion Solutions Corp. (b)		17,055		684,417
Micros Systems, Inc. (b)		9,625		569,030
Quest Software, Inc. (b)		61,810		906,752
				3,152,975
Financial (9.9%)
Cit Group, Inc.		24,500		989,800
Legg Mason, Inc.		8,950		570,205
T Rowe Price Group, Inc.		7,725		430,823
				1,990,828
Food & Beverage (3.3%)
Dean Foods Co. (b)		14,900		444,765
Ralcorp Holding, Inc.		5,900		216,825
				661,590
Hospitals (3.4%)
Triad Hospitals, Inc. (b)		20,600		680,418
Hotels & Casinos (2.1%)
Station Casinos, Inc.		8,170		416,262
Hotels & Motels (3.1%)
Starwood Hotels & Resorts Worldwide		13,150		627,650
Industrial Gases (3.8%)
Praxair, Inc.		18,000		759,600
Manufacturing (6.2%)
Fortune Brands, Inc.		4,000		291,280
Inco Ltd. (b)		8,400		297,360
Ingersoll Rand Co.		9,560		654,286
				1,242,926
Medical Products & Services (14.5%)
Fisher Scientific International, Inc. (b)		11,000		630,960
Gilead Sciences, Inc. (b)		23,300		806,879
Manor Care, Inc.		22,100		723,554
Teva Pharmaceutical Industries Ltd. ADR-IL		28,900		751,400
				2,912,793
Oil & Gas (7.7%)
Noble Corp. (b)		8,800		401,984
Patterson-UTI Energy, Inc.		30,000		576,900
The Williams Companies, Inc.		44,700		559,197
				1,538,081
Retail (6.7%)
Dollar General Corp.		30,900		594,825
Quiksilver, Inc. (b)		27,400		746,650
				1,341,475
Semiconductors (11.0%)
International Rectifier Corp. (b)		11,414		453,707
Jabil Circuit, Inc. (b)		28,500		692,835
Lam Research Corp. (b)		21,900		570,057
MEMC Electronic Materials, Inc. (b)		51,210		481,374
				2,197,973
Travel (3.5%)
Royal Caribbean Cruises Ltd.		15,000		699,000
Total Common Stocks				19,830,938
Commercial Paper (2.2%)
Insurance (2.2%)
Allstate Corp. 1.85%, 11/01/04	$	445,000		445,000
Total Commercial Paper				445,000
Short-Term Securities Held as Collateral for Securities Lending (3.6%)
Pool of short-term securities for Gartmore Mutual Funds - footnote 2 (Securities Lending)		711,475		711,475
Total Short-Term Securities Held as Collateral for Securities Lending				711,475
Total Investments (Cost $20,148,835) (a) — 104.8%				20,987,413
Liabilities in excess of other assets — (4.8)%				(959,243)
NET ASSETS — 100.0%			$	20,028,170

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Non-income producing securities.

ADR      American Depositary Receipt

IL       Israel

See notes to financial statements.

50 Annual Report 2004

Leadership Series

Gartmore Nationwide Leaders Fund

Gary Haubold assumed responsibility for the management of this Fund on Sept. 30, 2004. Mr. Haubold has 20 years of investment experience, with a flexible investment management style that favors value over growth. The Fund will now reflect this value emphasis, focusing on stocks with market capitalizations of between $10 billion and $50 billion.

For the annual period ended Oct. 31, 2004, the Gartmore Nationwide Leaders Fund returned 10.00% (Class A at NAV) versus 9.42% for its benchmark, the S&P 500 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Multi-Cap Core Funds was 8.25%.

This Fund is a “best ideas” portfolio, focused on only 20 to 30 companies with competitively strong positions in their respective industries where we believe the near-term investment outlook is very attractive. A small portion of the Fund is reserved to take advantage of shorter-term opportunities within the marketplace. Given the concentrated number of securities, this Fund can exhibit large performance deviations from those of the Index.

During the annual reporting period, the Fund outperformed its benchmark due to both sector and stock selections. Overweight positions relative to the benchmark in energy and materials stocks contributed to these results, since these sectors returned 44% and 17%, respectively. The political situation in the Middle East and the resulting concerns about supply disruptions kept oil prices high, while low inventory levels drove commodity prices higher. Lack of capital investment during the past five years, coupled with rising demand from China and Asia, has pushed commodity inventory levels to record lows, and prices to new highs.

Most of the Fund’s significant performance came from its top holdings. These stocks included Elan Corp., plc, an Ireland-based biotechnology company that focuses on neurology, autoimmune diseases and the treatment of pain, which contributed 2.96% to the Fund’s performance. The stock earned positive returns due to the company’s ongoing corporate restructuring, improved prospects for the firm’s multiple sclerosis drug Antegren and the company’s successful drug development technology, which Elan Corp. licensed to the Roche Group during the period. Royal Caribbean Cruises Ltd. was another top-performing holding of the Fund, contributing 2.43% to annual performance. It benefited from a cyclical increase in consumer spending on leisure and travel-related activities.

Stock selection in the information technology sector was the biggest detractor from Fund performance with semiconductor stocks such as Intel Corp. and Applied Materials, Inc. posting negative returns. These stocks suffered from substantial pricing pressures, as production ramped faster than demand increased, producing temporary inventory glut.

Looking ahead to the new fiscal year, there is much to be optimistic about. The contentious U.S. presidential election is now behind us, and the political direction of the country is now more certain. We continue to anticipate a recovering economy, stronger corporate profits and interest rates at historically low levels. China’s acceleration in growth has created meaningful and persistent shortages of such raw materials as coking coal, steel, copper and energy. Our portfolio strategy has evolved in response to the dynamic global market for commodities, and we will continue to carefully analyze the fortunes of the energy and raw materials sectors.

Portfolio Manager: Gary Haubold, CFA

Class A: GULAX

Class B: GULBX

Class C: GULCX

Class R: GNLRX

Institutional Service Class: GULIX

Institutional Class: GNLIX

2004 Annual Report 51

Leadership Series

Gartmore Nationwide Leaders Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		10.00%		8.05%
	with sales charge3		3.64%		5.81%
Class B	without sales charge2		9.32%		7.26%
	with sales charge4		4.32%		6.33%
Class C	without sales charge2		9.32%		7.26%
	with sales charge5		8.32%		7.26%
Class R 6,7			9.66%		7.42%
Institutional Class6,8			10.16%		8.19%
Institutional Service Class6			10.07%		8.16%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on December 28, 2001.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
6	Not subject to any sales charges.
7	These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
8	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Nationwide Leaders Fund, S&P 500 Index (S&P 500)(a) and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at how the stock prices of large U.S. companies have performed.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

52 Annual Report 2004

Gartmore Nationwide Leaders Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Nationwide Leaders Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,073	$	7.66			1.47%
	Hypothetical	1	$	1,000	$	1,018	$	7.48			1.47%
Class B	Actual		$	1,000	$	1,069	$	11.44			2.20%
	Hypothetical	1	$	1,000	$	1,014	$	11.20			2.20%
Class C	Actual		$	1,000	$	1,069	$	11.44			2.20%
	Hypothetical	1	$	1,000	$	1,014	$	11.20			2.20%
Class R	Actual		$	1,000	$	1,072	$	8.96			1.72%
	Hypothetical	1	$	1,000	$	1,016	$	8.76			1.72%
Institutional Service Class	Actual		$	1,000	$	1,073	$	7.40			1.42%
	Hypothetical	1	$	1,000	$	1,018	$	7.23			1.42%
Institutional Class (a)	Actual		$	1,000	$	1,030	$	3.85	(b)		1.12%
	Hypothetical	1	$	1,000	$	1,011	$	3.83	(b)		1.12%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 53

Gartmore Nationwide Leaders Fund

Leadership Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stock	94.5%
Repurchase Agreement	5.5%
	100.0%

Top Industries
Oil & Gas	14.6%
Financial Services	12.3%
Retail	7.5%
Computer Equipment	6.6%
Coal	5.7%
Capital Goods	5.0%
Drugs	4.9%
Telecommunications	4.3%
Food & Beverage	4.2%
Metals	4.2%
Other Industries	30.7%
	100.0%

Top Holdings
ConocoPhillips	4.9%
Pfizer, Inc.	4.9%
Goldman Sachs Group, Inc.	4.6%
Verizon Communications, Inc.	4.3%
Kraft Foods, Inc., Class A	4.2%
Phelps Dodge Corp.	4.2%
Royal Caribbean Cruises Ltd.	4.1%
Nike, Inc., Class B	4.0%
Wachovia Corp.	4.0%
Starwood Hotels & Resorts Worldwide, Inc.	4.0%
Other Holdings	56.8%
	100.0%

54 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Nationwide Leaders Fund

Common Stocks (94.5%)
	Shares or
	Principal Amount		Value
Aerospace/Defense (3.7%)
General Dynamics Corp.		1,700	$	173,604
Capital Goods (5.0%)
Cummins Engine, Inc.		1,550		108,624
PACCAR, Inc.		1,800		124,758
				233,382
Coal (5.7%)
Arch Coal, Inc.		4,420		143,738
Peabody Energy Corp.		1,900		121,182
				264,920
Computer Equipment (6.6%)
Apple Computer, Inc. (b)		1,300		68,289
Dell, Inc. (b)		2,400		84,144
International Business Machines Corp.		1,700		152,575
				305,008
Computer Software & Services (3.1%)
Microsoft Corp.		5,200		145,548
Drugs (4.9%)
Pfizer, Inc.		7,800		225,810
Financial Services (12.3%)
CIT Group, Inc.		4,200		169,680
Goldman Sachs Group, Inc.		2,175		213,977
Wachovia Corp.		3,800		186,998
				570,655
Food & Beverage (4.2%)
Kraft Foods, Inc., Class A		5,900		196,529
Hotels / Motels (4.0%)
Starwood Hotels & Resorts Worldwide, Inc.		3,900		186,147
Insurance (3.1%)
Allstate Corp. (The)		3,000		144,270
Metals (4.2%)
Phelps Dodge Corp.		2,200		192,588
Oil & Gas (14.6%)
Apache Corp.		3,218		163,153
BJ Services Co.		3,400		173,400
ConocoPhillips		2,700		227,637
Schlumberger Ltd.		1,700		106,998
				671,188
Railroads (3.3%)
Canadian National Railway Co. ADR — CA		500		27,025
Norfolk Southern Corp.		3,700		125,615
				152,640
Retail (7.5%)
Nike, Inc., Class B		2,300		187,013
Wal-Mart Stores, Inc.		2,958		159,495
				346,508
Steel (1.8%)
Nucor Corp.		2,000		84,460
Telecommunications (4.3%)
Verizon Communications, Inc.		5,100		199,410
Tobacco (2.1%)
UST, Inc.		2,400		98,784
Travel (4.1%)
Royal Caribbean Cruises Ltd.		4,100		191,060
Total Common Stocks				4,382,511
Repurchase Agreements (5.5%)
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $106,616 (Fully collateralized by U.S. Agency Securities & U.S. Treasury Notes)	$	106,600		106,600
Nomura Securities, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $148,968 (Fully collateralized by AA Rated Corporate Bonds & U.S. Agency Securities)		148,947		148,947
Total Repurchase Agreements				255,547
Total Investments (Cost $4,325,445) (a) — 100.0%				4,638,058
Other assets in excess of liabilities — 0.0%				519
NET ASSETS — 100.0%			$	4,638,577

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.

ADR      American Depositary Receipt

CA       Canada

See notes to financial statements.

2004 Annual Report 55

Leadership Series

Gartmore U.S. Growth Leaders Fund

For the annual period ended Oct. 31, 2004, the Gartmore U.S. Growth Leaders Fund returned 3.28% (Class A at NAV) versus 9.42% for the Fund’s benchmark, the S&P 500 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Multi-Cap Growth Funds was 4.69%.

During the reporting period, growth stocks fared reasonably well, though these stocks lagged value stock shares by a considerable margin. While the U.S. economy continued to grow at a moderate pace, as measured by changes in gross domestic product (GDP), the rate of growth declined steadily with each passing quarter. Furthermore, beginning with the surprisingly strong March 2004 employment numbers, investors began to anticipate that the Federal Reserve Board would raise short-term interest rates sooner rather than later—a perception that turned out to be accurate. These factors served as negative influences on the technology sector and on growth stocks in general. In addition, technology stocks were hampered by weaker-than-expected end-user demand, soft pricing and rising inventories.

Despite the challenges faced by the technology sector, this sector provided some of the Fund’s top performance contributors for the period. Security software maker Symantec Corp. was a strong contributor to Fund performance—contributing 1.60%, as Symantec beat earnings estimates for the third quarter, announced a two-for-one stock split and increased its share buyback program. McAfee, Inc., a rival security software provider whose securities were held by the Fund, exceeded its third-quarter earnings forecasts and upped guidance for the fourth quarter as well. In the consumer discretionary space, the discount retailer Target Corp. contributed 0.56% to Fund performance, as Target reported strong same-store sales for September 2004, and investors appeared optimistic about prospects for a profitable 2004 holiday season.

While the Fund enjoyed success with some of its technology picks, the primary factors holding back Fund performance, relative to the S&P 500 Index, were an overweighting in technology stocks and an underweighting in energy stocks. High crude oil and natural gas prices increased the profitability of energy exploration and production companies, as well as the firms that provide drilling and other services. In May, we began to increase the Fund’s energy weighting while trimming the Fund’s technology exposure, but these moves were not sufficient to stem the underperformance. Among the Fund’s technology holdings, some of the largest detractors were Emulex Corp. (-1.33%), SanDisk Corp. (-1.20%) and VERITAS Software Corp. (-0.78). Emulex, a maker of hardware that connects storage networks, saw its market share decline and inventories rise. SanDisk faltered due to slack demand for its flash memory cards. Meanwhile, VERITAS Software fell sharply in July when it announced that lower-than-expected license sales due to weakness in its enterprise business would cause VERITAS to fall short of earnings estimates for the second quarter.

Although growth stocks struggled during the period, we are optimistic about their prospects for 2005. Most analysts have significantly scaled back their forecasts for growth in individual companies and in the nation’s GDP, opening the door for more upside surprises. Moreover, while interest rates are rising, we believe that the Fed will do its tightening at a measured, gradual pace that should not jeopardize the economic recovery. Finally, energy prices appear to be moderating, which should help support spending by both consumers and businesses.

Portfolio Managers: Christopher Baggini, CFA and Douglas Burtnick, CFA

On September 21, 2004, the Enforcement Staff of the Commission’s Fort Worth District Office (the “Staff”) contacted Gartmore Mutual Fund Capital Trust (the “Adviser”), the investment adviser to the Gartmore U.S. Growth Leaders Fund (the “Fund”), a series of Gartmore Mutual Funds (“GMF”). The Staff asserted that the methodology used to calculate the performance fee for the Fund did not comply with the requirements of Rule 205-2 under the Investment Advisers Act of 1940 (“Advisers Act”). The Adviser agreed temporarily to forego the collection of any performance fees pending an evaluation of the Staff’s assertion. Discussions with the Staff are ongoing, and the outcome of those discussions will determine the remedial steps, if any, to be taken.

Class A: GXXAX

Class B: GXXBX

Class C: GXXCX

Class R: GGLRX

Institutional Service Class: GXXIX

Institutional Class: GGLIX

56 Annual Report 2004

Gartmore U.S. Growth Leaders Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		3.28%		-2.66%
	with sales charge3		-2.64%		-3.98%
Class B	without sales charge2		2.62%		-3.33%
	with sales charge4		-2.38%		-3.76%
Class C5	without sales charge2		2.60%		-3.19%
	with sales charge6		1.60%		-3.19%
Class R 7,8			2.86%		-3.25%
Institutional Class7,9			3.37%		-2.40%
Institutional Service Class7			3.37%		-2.40%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on June 30, 2000.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges.
6	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
7	Not subject to any sales charges.
8	These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
9	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore U.S. Growth Leaders Fund, S&P 500 Index (S&P 500)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at how the stock prices of large U.S. companies have performed.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

2004 Annual Report 57

Gartmore U.S. Growth Leaders Fund

Leadership Series

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
U.S. Growth Leaders Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,056	$	8.48			1.64%
	Hypothetica	l 1	$	1,000	$	1,017	$	8.35			1.64%
Class B	Actual		$	1,000	$	1,052	$	11.87			2.30%
	Hypothetical	1	$	1,000	$	1,013	$	11.71			2.30%
Class C	Actual		$	1,000	$	1,052	$	11.86			2.30%
	Hypothetical	1	$	1,000	$	1,013	$	11.71			2.30%
Class R	Actual		$	1,000	$	1,054	$	9.08			1.76%
	Hypothetical	1	$	1,000	$	1,016	$	8.96			1.76%
Institutional Service Class	Actual		$	1,000	$	1,057	$	7.91			1.53%
	Hypothetical	1	$	1,000	$	1,017	$	7.79			1.53%
Institutional Class (a)	Actual		$	1,000	$	997	$	4.40	(b)		1.30%
	Hypothetical	1	$	1,000	$	1,010	$	4.44	(b)		1.30%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

58 Annual Report 2004

Gartmore U.S. Growth Leaders Fund

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stock	96.0%
Repurchase Agreements	4.4%
Other Investments*	8.5%
Other Liabilities in excess of Assets**	-8.9%
	100.0%

 *  Includes value of collateral received from securities lending.

**  Includes value of collateral owed from securities lending.

Top Industries
Computer Software & Services	15.0%
Financial Services	11.6%
Healthcare	11.4%
Manufacturing	10.2%
Retail	10.1%
Semiconductors	9.1%
Oil & Gas	6.9%
Computer Equipment	5.9%
Hotels & Casinos	4.2%
Telecommunications	3.6%
Other Industries	12.0%
	100.0%

Top Holdings
Capital One Financial Corp.	5.7%
Kohl’s Corp.	4.3%
Marriott International, Inc., Class A	4.2%
Franklin Resources, Inc.	4.0%
Yahoo, Inc.	3.8%
EMC Corp.	3.8%
Juniper Networks, Inc.	3.6%
St. Jude Medical, Inc.	3.6%
UnitedHealth Group, Inc.	3.5%
Danaher Corp.	3.5%
Other Holdings	60.0%
	100.0%

2004 Annual Report 59

Leadership Series

Statement of Investments

October 31, 2004

Gartmore U.S. Growth Leaders Fund

Common Stocks (96.0%)
	Shares or
	Principal Amount		Value
Computer Equipment (5.9%)
Apple Computer, Inc. (b)		14,300	$	751,179
EMC Corp. (b)		102,590		1,320,333
				2,071,512
Computer Software & Services (15.0%)
Business Objects S.A. ADR - FR (b)		42,290		1,079,241
Citrix Systems, Inc. (b)		40,650		980,885
Macfee, Inc. (b)		37,300		902,660
Quest Software, Inc. (b)		66,000		968,220
Yahoo, Inc. (b)		38,160		1,381,010
				5,312,016
Consumer Products (3.5%)
Gillette Co. (The)		29,800		1,236,104
Financial Services (11.6%)
Ameritrade Holding Corp. (b)		53,650		698,523
Capital One Financial Corp.		26,890		1,983,407
Franklin Resources, Inc.		23,560		1,428,207
				4,110,137
Healthcare (11.4%)
Eyetech Pharmaceuticals, Inc. (b)		16,950		719,358
Gilead Sciences, Inc. (b)		22,710		786,447
St. Jude Medical, Inc. (b)		16,200		1,240,434
UnitedHealth Group, Inc.		17,130		1,240,212
				3,986,451
Hotels & Casinos (4.2%)
Marriott International, Inc., Class A		27,060		1,474,499
Insurance (2.5%)
Allstate Corp. (The)		18,190		874,757
Manufacturing (10.2%)
Danaher Corp.		22,490		1,239,873
Textron, Inc.		16,650		1,134,698
Tyco International Ltd.		39,200		1,221,080
				3,595,651
Oil & Gas (6.9%)
Nabors Industries Ltd. (b)		24,550		1,205,896
Praxair, Inc.		28,390		1,198,058
				2,403,954
Radio (2.0%)
XM Satellite Radio Holdings, Inc. (b)		21,300		688,416
Retail (10.1%)
Best Buy Co., Inc.		13,100		775,782
Kohl’s Corp. (b)		29,900		1,517,724
Target Corp.		24,670		1,233,993
				3,527,499
Semiconductors (9.1%)
Lam Research Corp. (b)		34,400		895,432
QLogic Corp. (b)		37,020		1,203,150
Texas Instruments, Inc.		44,050		1,077,023
				3,175,605
Telecommunications (3.6%)
Juniper Networks, Inc. (b)		47,280		1,258,121
Total Common Stocks				33,714,722
Repurchase Agreements (4.4%)
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $637,287 (Fully collateralized by U.S. Agency Securities & U.S. Treasury Notes)	$	637,195		637,195
Nomura Securities, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $890,444 (Fully collateralized by AA Rated Corporate Bonds & U.S. Agency Securities)		890,314		890,314
Total Repurchase Agreements				1,527,509
Short-Term Securities Held as Collateral for Securities Lending (8.5%)
Pool of short-term securities for Gartmore Mutual Funds — footnote 2 (Securities Lending)		2,999,835		2,999,835
Total Short-Term Securities Held as Collateral for Securities Lending				2,999,835
Total Investments (Cost $35,480,743) (a) — 108.9%				38,242,066
Liabilities in excess of other assets — (8.9)%				(3,153,951)
NET ASSETS — 100.0%			$	35,088,115

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.

ADR      American Depositary Receipt

FR       France

See notes to financial statements.

60 Annual Report 2004

Leadership Series

Gartmore Worldwide Leaders Fund

For the annual period ended Oct. 31, 2004, the Gartmore Worldwide Leaders Fund returned 7.28% (Class A at NAV) versus 13.76% for its benchmark, the Morgan Stanley Capital International (MSCI) World Index. For broader comparison, the average return for the Fund’s Lipper peer category of Global Large-Cap Core Funds was 9.85%.

Through the end of 2003 and the first quarter of 2004, the emerging equity markets continued to outperform the developed equity universe—particularly the Latin American region, which was bolstered by the improving global economic backdrop. An overweight position by the Fund in China and an underweight position in the United States benefited Fund performance. An overweight position by the Fund in Taiwan, however, hurt performance, because the Taiwanese market suffered as a result of a re-emergence of Severe Acute Respiratory Syndrome (SARS), an earthquake and growing political tension with the Chinese mainland.

A combination of surprisingly weak global markets, country allocations, and stock selections was responsible for the Fund’s underperformance during the period. In particular, underperformance in the last two months of 2003 was particularly pronounced, enough to offset the strong three-month run leading up to the close of the reporting period. March and April of 2004 witnessed a setback in the fortunes of global markets. U.S. employment data came in surprisingly weak, and the prospect of global monetary tightening weighed on the markets after the Chinese government implemented measures designed to cool economic growth. These developments particularly upset the emerging markets universe, which underperformed sharply during the second quarter of 2004. The rising oil prices also weighed on a number of markets during the latter half of the reporting period, not the least of which was Japan’s market. The Fund’s Japanese exposure was a major detractor from performance while the Fund’s overweighting of the relatively robust U.K. market added value.

The Fund’s U.S. exposure was markedly positive, not only due to our notable underweight position but also as a result of our particular stock picks. The Fund was underweight in Intel Corp. and Pfizer Inc., both of which lagged the wider market, while we were overweight in market leaders Apple Computer, Inc. and Hilton Hotels Corp., both of which outperformed the market.

At the country level, the Fund’s exposure to Japan had particularly negative impact on Fund performance. Overweighting Japan’s underperforming market detracted from Fund performance, as did our selection of the Japanese stocks, as reflected at the Fund’s stock level, where overweight positions in Kyorin Pharmaceutical Co., Ltd.; UFJ Holdings, Inc.; and Nissan Motor Co., Ltd. were among the weakest performing positions in the Fund.

In terms of sector allocation, the Fund’s underweighting of telecommunications was the biggest detractor from performance. Our selection of stocks in the consumer discretionary sector also was negative for Fund returns; U.S. retailers Netflix, Inc. and The Home Depot, Inc. were among the Fund’s bottom-performing stocks. Overweighting by the Fund to the energy sector, however, paid dividends, as the strengthening oil prices boosted Fund stocks such as ConocoPhillips and The “Shell” Transport and Trading Co., p.l.c., two of the Fund’s overweights.

As of the end of October 2004, the Fund had a reasonably cyclical bias, being notably overweight in the materials sector. This reflects the positive outlook for the sector, which is largely a function of still-buoyant Chinese demand for raw materials. The Fund also has an overweight stance in the energy sector, in a clear bid to leverage the high oil price. The cyclical effect of being overweight in materials, however, is tempered somewhat by an overweight in the more defensive health-care sector, though the Fund is underweight in the pharmaceuticals sub-sector due to concerns about competition.

Portfolio Manager: Neil Rogan

Class A: GLLAX

Class B: GLLBX

Class C: GLLCX

Class R: GWLRX

Institutional Service Class: GLLSX

Institutional Class: GWLIX

2004 Annual Report 61

Leadership Series

Gartmore Worldwide Leaders Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		7.28%		-6.61%
	with sales charge3		1.08%		-7.92%
Class B	without sales charge2		6.57%		-7.27%
	with sales charge4		1.57%		-7.72%
Class C5	without sales charge2		6.39%		-7.18%
	with sales charge6		5.39%		-7.18%
Class R 7,8			7.00%		-7.15%
Institutional Class7,9			7.34%		-6.37%
Institutional Service Class7			7.34%		-6.37%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on August 30, 2000.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges.
6	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
7	Not subject to any sales charges.
8	These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
9	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Worldwide Leaders Fund, the Morgan Stanley Capital International World Index (MSCI World)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The MSCI World — an unmanaged index of companies whose securities are listed on the stock exchanges of the U.S., Europe, Canada, Australia and the Far East- gives a broad look at how the stock prices of these companies have performed.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

62 Annual Report 2004

Gartmore Worldwide Leaders Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Worldwide Leaders Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,056	$	8.79			1.70%
	Hypothetical	1	$	1,000	$	1,016	$	8.65			1.70%
Class B	Actual		$	1,000	$	1,052	$	12.38			2.40%
	Hypothetical	1	$	1,000	$	1,013	$	12.22			2.40%
Class C	Actual		$	1,000	$	1,052	$	12.38			2.40%
	Hypothetical	1	$	1,000	$	1,013	$	12.22			2.40%
Class R	Actual		$	1,000	$	1,055	$	9.76			1.89%
	Hypothetical	1	$	1,000	$	1,015	$	9.62			1.89%
Institutional Service Class	Actual		$	1,000	$	1,056	$	8.53			1.65%
	Hypothetical	1	$	1,000	$	1,017	$	8.40			1.65%
Institutional Class (a)	Actual		$	1,000	$	1,051	$	4.86	(b)		1.40%
	Hypothetical	1	$	1,000	$	1,010	$	4.78	(b)		1.40%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 63

Gartmore Worldwide Leaders Fund

Leadership Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	95.0%
Repurchase Agreements	9.4%
Other Investments*	4.2%
Other Liabilities in excess of Assets**	-8.6%
	100.0%

 *  Includes value of collateral received from securities lending.

**  Includes value of collateral owed from securities lending.

Top Countries
United States	39.6%
United Kingdom	17.4%
Japan	10.7%
Australia	8.6%
Germany	6.0%
Italy	4.4%
Switzerland	3.8%
South Korea	2.9%
Hong Kong	1.6%
Other Countries	5.0%
	100.0%

Top Holdings
ConocoPhillips	4.4%
Apple Computer, Inc.	4.4%
HSBC Holdings PLC	4.3%
Autostrade SPA	4.2%
Hilton Hotels Corp.	4.1%
Gillette Co. (The)	4.0%
Shell Transport & Trading Co. PLC	3.9%
BHP Billiton PLC	3.8%
Computershare Ltd.	3.7%
Roche Holding AG	3.7%
Other Holdings	59.5%
	100.0%

64 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Worldwide Leaders Fund

Common Stocks (95.0%)
	Shares or
	Principal Amount		Value
AUSTRALIA (8.6%)
Computer Software & Services (3.8%)
Computershare Ltd. (c)		319,400	$	1,247,665
Multimedia (1.3%)
News Corp. Ltd. (The) ADR		13,000		408,720
Telecommunications (3.5%)
Telstra Corp. Ltd. (c)		323,000		1,125,305
				2,781,690
GERMANY (6.0%)
Chemicals (3.1%)
BASF AG (c)		15,600		977,066
Manufacturing (2.9%)
Siemens AG (c)		12,700		947,460
				1,924,526
HONG KONG (1.6%)
Chemicals (0.6%)
Kingboard Chemical Holdings Ltd. (c)		96,000		201,383
Textiles (1.0%)
Fountain Set Holdings Ltd. (c)		422,000		317,935
				519,318
ITALY (4.4%)
Public Thoroughfares (4.4%)
Autostrade SPA (c)		64,494		1,408,966
JAPAN (10.7%)
Electronics (2.0%)
Rohm Co. Ltd. (c)		6,200		634,568
Financial Services (6.8%)
Credit Saison Co. Ltd. (c)		25,900		826,998
Shinsei Bank Ltd. (c)		104,000		677,585
Sumitomo Mitsui Financial Group, Inc. (c)		104		675,307
				2,179,890
Real Estate (1.9%)
Mitsui Fudosan Co. Ltd. (c)		59,000		625,026
				3,439,484
SOUTH KOREA (2.9%)
Electronics (2.9%)
Hynix Semiconductor, Inc. (b) (c)		83,000		941,945
SWITZERLAND (3.8%)
Pharmaceuticals (3.8%)
Roche Holding AG (c)		12,100		1,234,865
UNITED KINGDOM (17.4%)
Banking (4.5%)
HSBC Holdings PLC (c)		89,000		1,435,781
Gas & Electric Utility (2.1%)
International Power PLC (b) (c)		234,000		690,916
Mining (6.4%)
BHP Billiton PLC (c)		125,000		1,270,145
Rio Tinto PLC (c)		30,000		787,034
				2,057,179
Oil & Gas (4.1%)
Shell Transport & Trading Co. PLC (c)		168,000		1,323,019
Water & Sewerage Services (0.3%)
Pennon Group PLC (c)		5,683		95,909
				5,602,804
UNITED STATES (39.6%)
Computer Software & Services (2.6%)
Adobe Systems, Inc.		14,800		829,244
Computers (4.6%)
Apple Computer, Inc. (b)		28,400		1,491,852
Cosmetics & Toiletries (9.3%)
Colgate-Palmolive Co.		11,000		490,820
Gillette Co. (The)		32,000		1,327,361
Procter & Gamble Co.		23,700		1,212,966
				3,031,147
Financial Services (2.0%)
J.P. Morgan Chase & Co.		16,600		640,760
Hotels & Motels (4.3%)
Hilton Hotels Corp.		69,900		1,391,010
Investment Advisory Services (3.6%)
Franklin Resources, Inc.		19,100		1,157,842
Motion Pictures & Services (0.3%)
Dreamworks Animation SKG, Inc. (b)		2,640		103,092
Oil & Gas (6.7%)
ConocoPhillips		17,800		1,500,718
EOG Resources, Inc.		9,900		658,944
				2,159,662
Retail (3.1%)
Target Corp.		19,800		990,396
Telecommunications (3.1%)
Sprint Corp.		47,400		993,030
				12,788,035
Total Common Stocks			$	30,641,633

2004 Annual Report 65

Statement of Investments (Continued)

October 31, 2004

Gartmore Worldwide Leaders Fund (Continued)

Leadership Series

Repurchase Agreements (9.4%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $1,258,140 (Fully collateralized by U.S. Agencies and Treasury Notes)	$	1,257,956	$	1,257,956
Nomura Securities, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $1,757,925 (Fully collateralized by AA Corporate Bonds and U.S. Agencies)		1,757,669		1,757,669
Total Repurchase Agreements				3,015,625

Short-Term Securities Held as Collateral for Securities Lending (4.2%)
	Shares or
	Principal Amount		Value
Pool of short-term securities for Gartmore Mutual Funds - footnote 2 (Securities Lending)	$	1,346,411		1,346,411
Total Short-Term Securities Held as Collateral for Securities Lending				1,346,411
Total Investments (Cost $33,015,401) (a) — 108.6%				35,003,669
Liabilities in excess of other assets — (8.6)%				(2,774,591)
NET ASSETS — 100.0%			$	32,229,078

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.
(c)	Fair Valued security.

ADR      American Depositary Receipt

See notes to financial statements.

66 Annual Report 2004

Statements of Assets and Liabilities

October 31, 2004

			Gartmore			Gartmore			Gartmore			Gartmore
			Mid Cap Growth			Nationwide			U.S. Growth			Worldwide
			Leaders Fund			Leaders Fund			Leaders Fund			Leaders Fund
Assets:
Investments, at value (cost $20,148,835; $4,069,898; $33,953,234; $29,999,776 respectively)			$	20,987,413		$	4,382,511		$	36,714,557		$	31,988,044
Repurchase agreements, at cost				—			255,547			1,527,509			3,015,625
		Total Investments		20,987,413			4,638,058			38,242,066			35,003,669
Cash				4,964			—			—			772
Foreign currency, at value (cost $0; $0; $0 and $271; respectively)				—			—			—			270
Interest and dividends receivable				551			2,485			9,340			50,511
Receivable for investments sold				866,616			65,397			2,705,682			152,221
Unrealized appreciation on forward foreign currency contracts				—			—			—			1,939
Receivable from adviser				22,644			6,047			5,087			25,101
Reclaims receivable				—			—			—			15,351
Prepaid expenses and other assets				12,857			13,068			28,849			28,699
		Total Assets		21,895,045			4,725,055			40,991,024			35,278,533
Liabilities:
Payable for investments purchased				1,111,468			80,217			2,828,476			1,638,968
Payable for capital shares redeemed				—			—			3,937			—
Payable for return of collateral received for securities on loan				711,475			—			2,999,835			1,346,411
Accrued expenses and other payables
	Investment advisory fees			13,364			3,082			42,911			24,269
	Fund administration and transfer agent fees			11,264			1,247			5,099			14,471
	Distribution fees			4,044			975			9,678			6,551
	Administrative servicing fees			285			400			11,739			11,256
	Other			14,975			557			1,234			7,529
		Total Liabilities		1,866,875			86,478			5,902,909			3,049,455
Net Assets			$	20,028,170		$	4,638,577		$	35,088,115		$	32,229,078
Represented by:
Capital			$	55,042,670		$	4,029,578		$	32,848,490		$	74,892,732
Accumulated net investment income (loss)				—			—			—			118,314
Accumulated net realized gains (losses) from investment, futures, short sales, and foreign currency transactions				(35,853,078	)		296,386			(521,698	)		(44,773,106	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies				838,578			312,613			2,761,323			1,991,138
Net Assets			$	20,028,170		$	4,638,577		$	35,088,115		$	32,229,078
Net Assets:
Class A Shares			$	5,768,818		$	1,445,458		$	21,272,881		$	30,706,545
Class B Shares				3,323,805			409,754			2,572,272			122,004
Class C Shares				76,623			403,818			3,999,718			24,896
Class D Shares				10,856,861			—			—			—
Class R Shares				1,018			1,126			1,105			1,120
Institutional Services Class Shares				—			2,377,392			7,008,419			1,373,462
Institutional Class Shares				1,045			1,029			233,720			1,051
Total			$	20,028,170		$	4,638,577		$	35,088,115		$	32,229,078
Shares outstanding (unlimited number of shares authorized)
Class A Shares				500,944			115,248			2,505,467			4,085,370
Class B Shares				309,447			33,271			312,239			16,713
Class C Shares				7,128			32,792			482,660			3,395
Class D Shares				925,456			—			—			—
Class R Shares				87			91			134			153
Institutional Services Class Shares				—			189,152			815,988			180,814
Institutional Class Shares				89			82			27,200			138
Total				1,743,151			370,636			4,143,688			4,286,583
Net asset value:
Class A Shares			$	11.52		$	12.54		$	8.49		$	7.52
Class B Shares (a)			$	10.74		$	12.32		$	8.24		$	7.30
Class C Shares (b)			$	10.75		$	12.31		$	8.29		$	7.33
Class D Shares			$	11.73		$	—		$	—		$	—
Class R Shares			$	11.68		$	12.37		$	8.27		$	7.33
Institutional Services Class Shares			$	—		$	12.57		$	8.59		$	7.60
Institutional Class Shares			$	11.73		$	12.58		$	8.59		$	7.60
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent)
Class A Shares			$	12.22		$	13.31		$	9.01		$	7.98
Class D Shares			$	12.28		$	—		$	—		$	—
Maximum Sales Charge — Class A Shares				5.75	%		5.75	%		5.75	%		5.75	%
Maximum Sales Charge — Class D Shares				4.50	%		—			—			—

(a)	For Class B shares, the redemption price per share varies by length of time shares are held.
(b)	For Class C shares, the redemption price per share is reduced by 1.00% for shares held less than one year.

See notes to financial statements.

2004 Annual Report 67

Leadership Series

Statements of Operations

For the Year Ended October 31, 2004

		Gartmore			Gartmore			Gartmore			Gartmore
		Mid Cap Growth			Nationwide			U.S. Growth			Worldwide
		Leaders Fund			Leaders Fund			Leaders Fund			Leaders Fund
INVESTMENT INCOME:
Interest income		$	4,251		$	1,586		$	12,903		$	5,930
Dividend income (net of foreign withholding tax of $0; $0; $0 and $44,267; respectively)			101,536			48,051			152,289			748,925
Income from securities lending			7,422			—			3,377			4,505
	Total Income		113,209			49,637			168,569			759,360
Expenses:
Investment advisory fees			183,545			37,513			309,373			330,068
Fund administration and transfer agent fees			48,665			8,563			46,808			92,537
Distribution fees Class A			15,320			3,680			38,665			81,273
Distribution fees Class B			34,532			3,815			23,517			1,068
Distribution fees Class C			674			3,760			30,058			229
Distribution fees Class R			3			4			4			4
Administrative servicing fees Class A			3,816			230			13,654			15,230
Administrative servicing fees Class R			2			3			3			3
Administrative servicing fees Institutional Service Class			—			4,420			18,836			3,573
Dividend expense for securities sold short			2			—			—			—
Registration and filing fees			51,512			49,753			45,941			45,964
Printing fees			43,118			3,328			13,536			41,291
Other			21,528			2,601			6,496			18,990
	Total expenses before reimbursed expenses		402,717			117,670			546,891			630,230
Expenses reimbursed			(98,160	)		(49,762	)		(45,996	)		(51,866	)
	Total Expenses		304,557			67,908			500,895			578,364
Net Investment Income (Loss)			(191,348	)		(18,271	)		(332,326	)		180,996
REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) on investment transactions			2,720,348			439,268			(217,369	)		2,155,711
Net realized gains (losses) on short sale transactions			(260,103	)		—			—			—
Net increase from payment by advisor for losses realized on the disposal of investments			14,628			—			—			—
Net realized gains (losses) on foreign currency transactions			—			—			—			(86,054	)
Net realized gains (losses) on investment, short sale and foreign currency transactions			2,474,873			439,268			(217,369	)		2,069,657
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in short sales and foreign currencies			(1,918,161	)		(59,891	)		1,185,980			122,533
Net realized/unrealized gains (losses) on investments, short sales and foreign currencies			556,712			379,377			968,611			2,192,190
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		$	365,364		$	361,106		$	636,285		$	2,373,186

See notes to financial statements.

68 Annual Report 2004

Statements of Changes in Net Assets

	Gartmore Mid Cap Growth Leaders Fund						Gartmore Nationwide Leaders Fund
	Year Ended			Year Ended			Year Ended			Year Ended
	October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)	$	(191,348	)	$	(227,519	)	$	(18,271	)	$	(5,050	)
Net realized gains (losses) on investment, short sales and foreign currency transactions		2,474,873			2,269,680			439,268			(59,975	)
Net change in unrealized appreciation/depreciation on investments and translation of assets and liabilities denominated in foreign currencies and short sales		(1,918,161	)		3,495,835			(59,891	)		582,847
Change in net assets resulting from operations		365,364			5,537,996			361,106			517,822
Distributions to Class A Shareholders from:
Net investment income		—			—			—			(3,468	)
Distributions to Class B Shareholders from:
Net investment income		—			—			—			(477	)
Distributions to Class C Shareholders from:
Net investment income		—			—			—			(368	)
Distributions to Institutional Service Class Shareholders from:
Net investment income		—			—			—			(3,660	)
Change in net assets from shareholder distributions		—			—			—			(7,973	)
Change in net assets from capital transactions		(2,227,976	)		(1,768,874	)		822,402			714,713
Change in net assets		(1,862,612	)		3,769,122			1,183,508			1,224,562
Net Assets:
Beginning of period		21,890,782			18,121,660			3,455,069			2,230,507
End of period	$	20,028,170		$	21,890,782		$	4,638,577		$	3,455,069

See notes to financial statements.

2004 Annual Report 69

Leadership Series

Statements of Changes in Net Assets

	Gartmore U.S. Growth Leaders Fund						Gartmore Worldwide Leaders Fund
	Year Ended			Year Ended			Year Ended			Year Ended
	October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)	$	(332,326	)	$	(87,378	)	$	180,996		$	(64,310	)
Net realized gains (losses) on investment and foreign currency transactions		(217,369	)		2,057,741			2,069,657			8,003,840
Net change in unrealized appreciation/ depreciation on investments and translation of assets and liabilities denominated in foreign currencies		1,185,980			1,383,567			122,533			(1,598,403	)
Change in net assets resulting from operations		636,285			3,353,930			2,373,186			6,341,127
Change in net assets from capital transactions		15,543,896			12,610,380			(6,548,427	)		26,929,213
Change in net assets		16,180,181			15,964,310			(4,175,241	)		33,270,340
Net Assets:
Beginning of period		18,907,934			2,943,624			36,404,319			3,133,979
End of period	$	35,088,115		$	18,907,934		$	32,229,078		$	36,404,319

See notes to financial statements.

70 Annual Report 2004

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Gartmore Mid Cap Growth Leaders Fund

			Investment Activities									Distributions
						Net Realized
						and
	Net Asset		Net			Unrealized			Total
	Value,		Investment			Gains			from			Net						Net Asset
	Beginning		Income			(Losses) on			Investment			Investment			Total			Value, End		Total
	of Period		(Loss)			Investments			Activities			Income			Distributions			of Period		Return (a)
Class A Shares
Year Ended October 31, 2000 (d)	$	19.70		(0.27	)		10.63			10.36			(1.37	)		(1.37	)	$	28.69		56.20%
Year Ended October 31, 2001	$	28.69		(0.16	)		(15.19	)		(15.35	)		(2.41	)		(2.41	)	$	10.93		(57.29%	)
Year Ended October 31, 2002	$	10.93		(0.14	)		(2.29	)		(2.43	)		—			—		$	8.50		(22.23%	)
Year Ended October 31, 2003	$	8.50		(0.12	)		2.92			2.80			—			—		$	11.30		32.94%
Year Ended October 31, 2004	$	11.30		(0.12	)		0.34			0.22			—			—		$	11.52		1.95%
Class B Shares
Year Ended October 31, 2000 (d)	$	19.44		(0.42	)		10.59			10.17			(1.37	)		(1.37	)	$	28.24		55.97%
Year Ended October 31, 2001	$	28.24		(0.22	)		(15.21	)		(15.43	)		(2.41	)		(2.41	)	$	10.40		(58.60%	)
Year Ended October 31, 2002	$	10.40		(0.19	)		(2.18	)		(2.37	)		—			—		$	8.03		(22.79%	)
Year Ended October 31, 2003	$	8.03		(0.18	)		2.76			2.58			—			—		$	10.61		32.13%
Year Ended October 31, 2004	$	10.61		(0.18	)		0.31			0.13			—			—		$	10.74		1.23%
Class C Shares
Period Ended October 31, 2001 (e)	$	13.46		(0.07	)		(2.98	)		(3.05	)		—			—		$	10.41		(22.66%	) (f)
Year Ended October 31, 2002	$	10.41		(0.19	)		(2.18	)		(2.37	)		—			—		$	8.04		(22.77%	)
Year Ended October 31, 2003	$	8.04		(0.16	)		2.74			2.58			—			—		$	10.62		32.09%
Year Ended October 31, 2004	$	10.62		(0.16	)		0.29			0.13			—			—		$	10.75		1.22%
Class D Shares
Year Ended October 31, 2000	$	19.69		(0.14	)		10.57			10.43			(1.37	)		(1.37	)	$	28.75		56.61%
Year Ended October 31, 2001	$	28.75		(0.11	)		(15.20	)		(15.31	)		(2.41	)		(2.41	)	$	11.03		(57.00%	)
Year Ended October 31, 2002	$	11.03		(0.11	)		(2.32	)		(2.43	)		—			—		$	8.60		(22.03%	)
Year Ended October 31, 2003	$	8.60		(0.10	)		2.97			2.87			—			—		$	11.47		33.37%
Year Ended October 31, 2004	$	11.47		(0.08	)		0.34			0.26			—			—		$	11.73		2.27%
Class R Shares
Period Ended October 31, 2004 (h)	$	11.47		(0.11	)		0.32			0.21			—			—		$	11.68		1.83%	(f)
Institutional Class Shares
Period Ended October 31, 2004 (i)	$	11.23		(0.01	)		0.51			0.50			—			—		$	11.73		4.45%	(f)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Year Ended October 31, 2000 (d)	$	22,612		1.47%			(0.95%	)		1.67%			(1.15%	)		330.32%
Year Ended October 31, 2001	$	6,601		1.63%			(1.00%	)		2.75%			(2.12%	)		698.74%
Year Ended October 31, 2002	$	4,880		1.59%			(1.27%	)		2.20%			(1.88%	)		432.60%
Year Ended October 31, 2003	$	6,441		1.55%			(1.27%	)		1.99%			(1.71%	)		365.45%
Year Ended October 31, 2004	$	5,769		1.50%			(0.97%	)		1.98%			(1.44%	)		405.85%
Class B Shares
Year Ended October 31, 2000 (d)	$	7,608		2.10%			(1.57%	)		2.35%			(1.82%	)		330.32%
Year Ended October 31, 2001	$	3,985		2.23%			(1.60%	)		3.67%			(3.04%	)		698.74%
Year Ended October 31, 2002	$	3,005		2.25%			(1.94%	)		2.90%			(2.59%	)		432.60%
Year Ended October 31, 2003	$	3,663		2.24%			(1.96%	)		2.68%			(2.40%	)		365.45%
Year Ended October 31, 2004	$	3,324		2.20%			(1.66%	)		2.67%			(2.13%	)		405.85%
Class C Shares
Period Ended October 31, 2001 (e)	$	52		2.23%	(g)		(1.76%	) (g)		4.38%	(g)		(3.91%	) (g)		698.74%
Year Ended October 31, 2002	$	45		2.25%			(1.94%	)		2.90%			(2.59%	)		432.60%
Year Ended October 31, 2003	$	69		2.24%			(1.96%	)		2.69%			(2.41%	)		365.45%
Year Ended October 31, 2004	$	77		2.20%			(1.65%	)		2.69%			(2.14%	)		405.85%
Class D Shares
Year Ended October 31, 2000	$	36,090		1.10%			(0.55%	)		1.30%			(0.75%	)		330.32%
Year Ended October 31, 2001	$	15,079		1.30%			(0.69%	)		2.51%			(1.90%	)		698.74%
Year Ended October 31, 2002	$	10,192		1.27%			(0.97%	)		1.90%			(1.60%	)		432.60%
Year Ended October 31, 2003	$	11,747		1.24%			(0.96%	)		1.69%			(1.40%	)		365.45%
Year Ended October 31, 2004	$	10,857		1.20%			(0.66%	)		1.67%			(1.13%	)		405.85%
Class R Shares
Period Ended October 31, 2004 (h)	$	1		1.72%	(g)		(1.16%	) (g)		2.09%	(g)		(1.53%	) (g)		405.85%
Institutional Class Shares
Period Ended October 31, 2004 (i)	$	1		1.08%	(g)		(0.69%	) (g)		2.50%	(g)		(2.11%	) (g)		405.85%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	Net investment income (losses) is based on average shares outstanding during the period.
(e)	For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(f)	Not annualized.
(g)	Annualized.
(h)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(i)	For the period from September 28, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

2004 Annual Report 71

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Leadership Series

Gartmore Nationwide Leaders Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized			Total
	Value,		Investment			Gains			from
	Beginning		Income			(Losses) on			Investment
	of Period		(Loss)			Investments			Activities
Class A Shares
Period Ended October 31, 2002 (d)	$	10.00		0.02			(0.55	)		(0.53	)
Year Ended October 31, 2003	$	9.46		—			1.98			1.98
Year Ended October 31, 2004	$	11.40		(0.04	)		1.18			1.14
Class B Shares
Period Ended October 31, 2002 (d)	$	10.00		(0.05	)		(0.55	)		(0.60	)
Year Ended October 31, 2003	$	9.40		(0.09	)		1.97			1.88
Year Ended October 31, 2004	$	11.27		(0.12	)		1.17			1.05
Class C Shares
Period Ended October 31, 2002 (d)	$	10.00		(0.05	)		(0.55	)		(0.60	)
Year Ended October 31, 2003	$	9.40		(0.08	)		1.96			1.88
Year Ended October 31, 2004	$	11.27		(0.12	)		1.16			1.04
Class R Shares
Period Ended October 31, 2003 (e)	$	10.98		(0.01	)		0.31			0.30
Year Ended October 31, 2004	$	11.28		(0.08	)		1.17			1.09
Institutional Service Class Shares
Period Ended October 31, 2002 (d)	$	10.00		0.03			(0.55	)		(0.52	)
Year Ended October 31, 2003	$	9.47		—			1.99			1.99
Year Ended October 31, 2004	$	11.42		(0.03	)		1.18			1.15
Institutional Class Shares
Period Ended October 31, 2004 (h)	$	12.22		(0.01	)		0.37			0.36

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net						Net Asset
	Investment			Total			Value, End		Total
	Income			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2002 (d)		(0.01	)		(0.01	)	$	9.46		(5.34%	) (f)
Year Ended October 31, 2003		(0.04	)		(0.04	)	$	11.40		20.97%
Year Ended October 31, 2004		—			—		$	12.54		10.00%
Class B Shares
Period Ended October 31, 2002 (d)		—			—		$	9.40		(6.00%	) (f)
Year Ended October 31, 2003		(0.01	)		(0.01	)	$	11.27		20.08%
Year Ended October 31, 2004		—			—		$	12.32		9.32%
Class C Shares
Period Ended October 31, 2002 (d)		—			—		$	9.40		(6.00%	) (f)
Year Ended October 31, 2003		(0.01	)		(0.01	)	$	11.27		20.08%
Year Ended October 31, 2004		—			—		$	12.31		9.32%
Class R Shares
Period Ended October 31, 2003 (e)		—			—		$	11.28		2.73%	(f)
Year Ended October 31, 2004		—			—		$	12.37		9.66%
Institutional Service Class Shares
Period Ended October 31, 2002 (d)		(0.01	)		(0.01	)	$	9.47		(5.23%	) (f)
Year Ended October 31, 2003		(0.04	)		(0.04	)	$	11.42		21.10%
Year Ended October 31, 2004		—			—		$	12.57		10.07%
Institutional Class Shares
Period Ended October 31, 2004 (h)		—			—		$	12.58		2.95%	(f)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2002 (d)	$	891		1.45%	(g)		0.23%	(g)		4.93%	(g)		(3.25%	) (g)		60.54%
Year Ended October 31, 2003	$	1,351		1.45%			(0.04%	)		3.23%			(1.82%	)		196.86%
Year Ended October 31, 2004	$	1,445		1.47%			(0.31%	)		2.61%			(1.46%	)		230.95%
Class B Shares
Period Ended October 31, 2002 (d)	$	317		2.20%	(g)		(0.58%	) (g)		5.78%	(g)		(4.16%	) (g)		60.54%
Year Ended October 31, 2003	$	350		2.20%			(0.74%	)		4.11%			(2.65%	)		196.86%
Year Ended October 31, 2004	$	410		2.20%			(1.05%	)		3.34%			(2.20%	)		230.95%
Class C Shares
Period Ended October 31, 2002 (d)	$	243		2.21%	(g)		(0.60%	) (g)		5.80%	(g)		(4.19%	) (g)		60.54%
Year Ended October 31, 2003	$	358		2.20%			(0.82%	)		3.95%			(2.57%	)		196.86%
Year Ended October 31, 2004	$	404		2.20%			(1.05%	)		3.34%			(2.20%	)		230.95%
Class R Shares
Period Ended October 31, 2003 (e)	$	1		1.80%	(g)		(1.11%	) (g)		(1.90%	) (g)		(1.21%	) (g)		196.86%
Year Ended October 31, 2004	$	1		1.81%			(0.69%	)		2.91%			(1.79%	)		230.95%
Institutional Service Class Shares
Period Ended October 31, 2002 (d)	$	778		1.32%	(g)		0.39%	(g)		4.74%	(g)		(3.03%	) (g)		60.54%
Year Ended October 31, 2003	$	1,395		1.38%			0.01%			3.06%			(1.67%	)		196.86%
Year Ended October 31, 2004	$	2,377		1.41%			(0.27%	)		2.56%			(1.42%	)		230.95%
Institutional Class Shares
Period Ended October 31, 2004 (h)	$	1		1.12%	(g)		(0.17%	) (g)		2.44%	(g)		(1.50%	) (g)		230.95%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from December 18, 2001 (commencement of operations) through October 31, 2002. Registration of shares effective with the Securities and Exchange Commission on December 28, 2001.
(e)	For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(f)	Not annualized.
(g)	Annualized.
(h)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

72 Annual Report 2004

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Gartmore U.S. Growth Leaders Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized			Total
	Value,		Investment			Gains			from
	Beginning		Income			(Losses) on			Investment
	of Period		(Loss)			Investments			Activities
Class A Shares
Period Ended October 31, 2000 (d)	$	10.00		(0.01	)		1.65			1.64
Year Ended October 31, 2001	$	11.64		(0.08	)		(5.13	)		(5.21	)
Year Ended October 31, 2002	$	6.02		(0.07	)		(0.46	)		(0.53	)
Year Ended October 31, 2003	$	5.49		(0.03	)		2.76			2.73
Year Ended October 31, 2004	$	8.22		(0.07	)		0.34			0.27
Class B Shares
Period Ended October 31, 2000 (d)	$	10.00		(0.03	)		1.65			1.62
Year Ended October 31, 2001	$	11.62		(0.11	)		(5.14	)		(5.25	)
Year Ended October 31, 2002	$	5.96		(0.12	)		(0.44	)		(0.56	)
Year Ended October 31, 2003 (f)	$	5.40		(0.11	)		2.74			2.63
Year Ended October 31, 2004	$	8.03		(0.13	)		0.34			0.21
Class C Shares
Period Ended October 31, 2001 (e)	$	6.45		(0.04	)		(0.41	)		(0.45	)
Year Ended October 31, 2002 (f)	$	6.00		(0.12	)		(0.44	)		(0.56	)
Year Ended October 31, 2003 (f)	$	5.44		(0.13	)		2.77			2.64
Year Ended October 31, 2004	$	8.08		(0.11	)		0.32			0.21
Class R Shares
Period Ended October 31, 2003 (g)	$	7.49		(0.01	)		0.56			0.55
Year Ended October 31, 2004	$	8.04		(0.11	)		0.34			0.23
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	10.00		—			1.66			1.66
Year Ended October 31, 2001	$	11.66		(0.06	)		(5.13	)		(5.19	)
Year Ended October 31, 2002 (f)	$	6.06		(0.06	)		(0.46	)		(0.52	)
Year Ended October 31, 2003	$	5.54		(0.03	)		2.80			2.77
Year Ended October 31, 2004	$	8.31		(0.09	)		0.37			0.28
Institutional Class Shares
Period Ended October 31, 2004 (j)	$	8.62		(0.02	)		(0.01	)		(0.03	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net						Net Asset
	Realized			Total			Value, End		Total
	Gains			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2000 (d)		—			—		$	11.64		16.40%	(h)
Year Ended October 31, 2001		(0.41	)		(0.41	)	$	6.02		(45.81%	)
Year Ended October 31, 2002		—			—		$	5.49		(8.80%	)
Year Ended October 31, 2003		—			—		$	8.22		49.73%
Year Ended October 31, 2004		—			—		$	8.49		3.28%
Class B Shares
Period Ended October 31, 2000 (d)		—			—		$	11.62		16.20%	(h)
Year Ended October 31, 2001		(0.41	)		(0.41	)	$	5.96		(46.25%	)
Year Ended October 31, 2002		—			—		$	5.40		(9.40%	)
Year Ended October 31, 2003 (f)		—			—		$	8.03		48.70%
Year Ended October 31, 2004		—			—		$	8.24		2.62%
Class C Shares
Period Ended October 31, 2001 (e)		—			—		$	6.00		(6.98%	) (h)
Year Ended October 31, 2002 (f)		—			—		$	5.44		(9.33%	)
Year Ended October 31, 2003 (f)		—			—		$	8.08		48.53%
Year Ended October 31, 2004		—			—		$	8.29		2.60%
Class R Shares
Period Ended October 31, 2003 (g)		—			—		$	8.04		7.34%	(h)
Year Ended October 31, 2004		—			—		$	8.27		2.86%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)		—			—		$	11.66		16.60%	(h)
Year Ended October 31, 2001		(0.41	)		(0.41	)	$	6.06		(45.55%	)
Year Ended October 31, 2002 (f)		—			—		$	5.54		(8.58%	)
Year Ended October 31, 2003		—			—		$	8.31		50.00%
Year Ended October 31, 2004		—			—		$	8.59		3.37%
Institutional Class Shares
Period Ended October 31, 2004 (j)		—			—		$	8.59		(0.35%	) (h)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2000 (d)	$	1,411		1.20%	(i)		(0.30%	) (i)		8.29%	(i)		(7.39%	) (i)		124.62%
Year Ended October 31, 2001	$	1,195		1.60%			(1.04%	)		7.91%			(7.35%	)		944.67%
Year Ended October 31, 2002	$	1,356		1.57%			(1.20%	)		3.04%			(2.67%	)		773.95%
Year Ended October 31, 2003	$	8,714		1.59%			(1.02%	)		2.10%			(1.54%	)		637.45%
Year Ended October 31, 2004	$	21,273		1.64%			(1.06%	)		1.80%			(1.23%	)		510.91%
Class B Shares
Period Ended October 31, 2000 (d)	$	804		1.70%	(i)		(0.83%	) (i)		9.20%	(i)		(8.33%	) (i)		124.62%
Year Ended October 31, 2001	$	772		2.20%			(1.66%	)		8.84%			(8.30%	)		944.67%
Year Ended October 31, 2002	$	719		2.26%			(1.89%	)		3.88%			(3.51%	)		773.95%
Year Ended October 31, 2003 (f)	$	2,023		2.30%			(1.72%	)		2.96%			(2.38%	)		637.45%
Year Ended October 31, 2004	$	2,572		2.30%			(1.71%	)		2.45%			(1.86%	)		510.91%
Class C Shares
Period Ended October 31, 2001 (e)	$	9		2.20%	(i)		(1.77%	) (i)		9.87%	(i)		(9.44%	) (i)		944.67%
Year Ended October 31, 2002 (f)	$	16		2.27%			(1.89%	)		3.69%			(3.31%	)		773.95%
Year Ended October 31, 2003 (f)	$	1,606		2.30%			(1.76%	)		2.60%			(2.07%	)		637.45%
Year Ended October 31, 2004	$	4,000		2.30%			(1.74%	)		2.47%			(1.91%	)		510.91%
Class R Shares
Period Ended October 31, 2003 (g)	$	1		1.90%	(i)		(1.64%	) (i)		2.00%	(i)		(1.74%	) (i)		637.45%
Year Ended October 31, 2004	$	1		1.89%			(1.33%	)		2.20%			(1.64%	)		510.91%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	777		0.75%	(i)		0.12%	(i)		8.14%	(i)		(7.27%	) (i)		124.62%
Year Ended October 31, 2001	$	449		1.30%			(0.75%	)		7.39%			(6.84%	)		944.67%
Year Ended October 31, 2002 (f)	$	853		1.32%			(0.95%	)		2.52%			(2.15%	)		773.95%
Year Ended October 31, 2003	$	6,563		1.50%			(0.94%	)		2.00%			(1.44%	)		637.45%
Year Ended October 31, 2004	$	7,008		1.54%			(0.93%	)		1.68%			(1.08%	)		510.91%
Institutional Class Shares
Period Ended October 31, 2004 (j)	$	234		1.30%	(i)		(0.83%	) (i)		1.54%	(i)		(1.07%	) (i)		510.91%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from June 30, 2000 (commencement of operations) through October 31, 2000.
(e)	For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(f)	Net investment income (loss) is based on average shares outstanding during the period.
(g)	For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(h)	Not annualized.
(i)	Annualized.
(j)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

2004 Annual Report 73

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Leadership Series

Gartmore Worldwide Leaders Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized			Total
	Value,		Investment			Gains			from
	Beginning		Income			(Losses) on			Investment
	of Period		(Loss)			Investments			Activities
Class A Shares
Period Ended October 31, 2000 (d)	$	10.00		—			(0.88	)		(0.88	)
Year Ended October 31, 2001	$	9.12		(0.01	)		(2.85	)		(2.86	)
Year Ended October 31, 2002	$	6.26		—			(0.76	)		(0.76	)
Year Ended October 31, 2003	$	5.50		(0.02	)		1.53			1.51
Year Ended October 31, 2004	$	7.01		0.05			0.46			0.51
Class B Shares
Period Ended October 31, 2000 (d)	$	10.00		—			(0.89	)		(0.89	)
Year Ended October 31, 2001	$	9.11		(0.06	)		(2.85	)		(2.91	)
Year Ended October 31, 2002	$	6.20		(0.04	)		(0.75	)		(0.79	)
Year Ended October 31, 2003 (e)	$	5.41		(0.04	)		1.48			1.44
Year Ended October 31, 2004	$	6.85		—			0.45			0.45
Class C Shares
Period Ended October 31, 2001 (f)	$	7.77		(0.02	)		(1.52	)		(1.54	)
Year Ended October 31, 2002	$	6.23		(0.04	)		(0.75	)		(0.79	)
Year Ended October 31, 2003	$	5.44		(0.06	)		1.51			1.45
Year Ended October 31, 2004	$	6.89		—			0.44			0.44
Class R Shares
Period Ended October 31, 2003 (i)	$	6.55		(0.01	)		0.32			0.31
Year Ended October 31, 2004	$	6.86		0.02			0.45			0.47
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	10.00		0.01			(0.89	)		(0.88	)
Year Ended October 31, 2001	$	9.12		0.01			(2.84	)		(2.83	)
Year Ended October 31, 2002	$	6.29		0.01			(0.76	)		(0.75	)
Year Ended October 31, 2003	$	5.54		—			1.54			1.54
Year Ended October 31, 2004	$	7.08		0.05			0.47			0.52
Institutional Class Shares
Period Ended October 31, 2004 (j)	$	7.23		0.02			0.35			0.37

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Net Asset
	Value, End		Total
	of Period		Return (a)
Class A Shares
Period Ended October 31, 2000 (d)	$	9.12		(8.80%	) (g)
Year Ended October 31, 2001	$	6.26		(31.36%	)
Year Ended October 31, 2002	$	5.50		(12.14%	)
Year Ended October 31, 2003	$	7.01		27.45%
Year Ended October 31, 2004	$	7.52		7.28%
Class B Shares
Period Ended October 31, 2000 (d)	$	9.11		(8.90%	) (g)
Year Ended October 31, 2001	$	6.20		(31.94%	)
Year Ended October 31, 2002	$	5.41		(12.74%	)
Year Ended October 31, 2003 (e)	$	6.85		26.62%
Year Ended October 31, 2004	$	7.30		6.57%
Class C Shares
Period Ended October 31, 2001 (f)	$	6.23		(19.82%	) (g)
Year Ended October 31, 2002	$	5.44		(12.68%	)
Year Ended October 31, 2003	$	6.89		26.65%
Year Ended October 31, 2004	$	7.33		6.39%
Class R Shares
Period Ended October 31, 2003 (i)	$	6.86		4.73%	(g)
Year Ended October 31, 2004	$	7.33		7.00%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	9.12		(8.80%	) (g)
Year Ended October 31, 2001	$	6.29		(31.03%	)
Year Ended October 31, 2002	$	5.54		(11.92%	)
Year Ended October 31, 2003	$	7.08		27.80%
Year Ended October 31, 2004	$	7.60		7.34%
Institutional Class Shares
Period Ended October 31, 2004 (j)	$	7.60		5.12%	(g)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2000 (d)	$	1,542		1.68%	(h)		0.05%	(h)		6.74%	(h)		(5.01%	) (h)		21.59%
Year Ended October 31, 2001	$	1,096		1.75%			(0.19%	)		5.71%			(4.15%	)		34.57%
Year Ended October 31, 2002	$	1,046		1.69%			(0.03%	)		2.60%			(0.94%	)		467.35%
Year Ended October 31, 2003	$	34,889		1.67%			(0.47%	)		(k)			(k)			689.06%
Year Ended October 31, 2004	$	30,707		1.70%			0.53%			1.85%			0.38%			495.62%
Class B Shares
Period Ended October 31, 2000 (d)	$	1,519		2.26%	(h)		(0.53%	) (h)		7.47%	(h)		(5.74%	) (h)		21.59%
Year Ended October 31, 2001	$	1,051		2.35%			(0.78%	)		6.47%			(4.90%	)		34.57%
Year Ended October 31, 2002	$	936		2.39%			(0.72%	)		3.36%			(1.69%	)		467.35%
Year Ended October 31, 2003 (e)	$	96		2.39%			(0.72%	)		(k)			(k)			689.06%
Year Ended October 31, 2004	$	122		2.40%			(0.13%	)		2.57%			(0.30%	)		495.62%
Class C Shares
Period Ended October 31, 2001 (f)	$	20		2.35%	(h)		(1.04%	) (h)		7.40%	(h)		(6.09%	) (h)		34.57%
Year Ended October 31, 2002	$	19		2.39%			(0.71%	)		3.41%			(1.73%	)		467.35%
Year Ended October 31, 2003	$	19		2.38%			(0.84%	)		(k)			(k)			689.06%
Year Ended October 31, 2004	$	25		2.40%			(0.08%	)		2.57%			(0.25%	)		495.62%
Class R Shares
Period Ended October 31, 2003 (i)	$	1		1.87%	(h)		(1.05%	) (h)		1.97%	(h)		(1.15%	) (h)		689.06%
Year Ended October 31, 2004	$	1		1.96%			0.28%			2.12%			0.12%			495.62%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	1,521		1.36%	(h)		0.37%	(h)		6.45%	(h)		(4.72%	) (h)		21.59%
Year Ended October 31, 2001	$	1,048		1.42%			0.13%			5.44%			(3.89%	)		34.57%
Year Ended October 31, 2002	$	1,133		1.42%			0.25%			2.34%			(0.67%	)		467.35%
Year Ended October 31, 2003	$	1,400		1.46%			0.12%			(k)			(k)			689.06%
Year Ended October 31, 2004	$	1,373		1.65%			0.61%			1.80%			0.46%			495.62%
Institutional Class Shares
Period Ended October 31, 2004 (j)	$	1		1.40%	(h)		0.72%	(h)		1.70%	(h)		0.42%	(h)		495.62%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from August 30, 2000 (commencement of operations) through October 31, 2000.
(e)	Net investment income (loss) is based on average shares outstanding during the period.
(f)	For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(g)	Not annualized.
(h)	Annualized.
(i)	For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(j)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(k)	There no fee reductions in this period.

See notes to financial statements.

74 Annual Report 2004

International Series

Gartmore China Opportunities Fund

From its inception on June 29, 2004, through Oct. 31, 2004, the Gartmore China Opportunities Fund returned 12.61% (Class A at NAV) versus 10.08% for its benchmark, the Morgan Stanley Capital International (MSCI) Zhong Hua Index. For broader comparison, the average return for the Fund’s Lipper peer category of China Region Funds was 6.27%.

Equity markets in the Chinese region began the period strongly, thanks in part to China’s robust economic growth and the supportive global macroeconomic backdrop. However, March and April 2004 witnessed a change in market environment that generated a wave of profit-taking and outright selling. Monetary tightening in China, political uncertainty in Taiwan, jitters about the prospects for global growth and concerns that valuations had become over-extended combined to drive the markets sharply lower. By the time of the Fund’s June 2004 inception, Hong Kong’s market had more or less stabilized, performing strongly during the remaining months of the reporting period, helped by a recovery in the property sector. However, Taiwan’s market remained under pressure; rising oil prices and the poor performance of the technology sector caused problems. Later in the period, China’s market was boosted by evidence that the government had succeeded in slowing the economy without causing a hard landing, although the surprise announcement of an interest-rate hike late in October was something of an unpleasant surprise.

Stock selection was the main driver of the strong performance for the Fund during the reporting period, particularly in the financials sector. The Fund benefited from overweight positions in a number of outperforming Hong Kong real estate stocks as the Hong Kong property market benefited from reflation— the intentional reversal of deflation through a monetary action by a government. Most notably Midland Realty Group and New World Development Co. Ltd. Contributed 1.81% and 0.28% to the Fund’s performance, respectively. Stock selection in the industrials and consumer discretionary sectors also contributed positively to Fund performance, as did an overweight allocation to the materials sector. An overweight holding of Yanzhou Coal Mining Co. Ltd. was one of the best-performing positions in the portfolio, contributing 0.29% to the Fund’s performance.

The largest detractor from performance came from the Fund’s underweight allocation to the energy sector, given that the sector performed so well on the strong rise in oil prices. Consequently, our underweight positions in PetroChina Co. Ltd. (-0.31%), The Hong Kong and China Gas Co. Ltd. (-0.27%) and CNOOC Ltd. (-0.40%) were among the bottom five contributors to Fund performance.

The Fund continues to focus on consumer-related stocks on the basis that the strong gross domestic product levels of recent years will continue to fuel a rise in China’s consumerism. Stocks with strong brands, including Wumart Stores, Inc. and Convenience Retail Asia Ltd., are therefore allocated overweight positions in the Fund. We choose to avoid companies with relatively high debt levels as well as state-owned enterprises, feeling that they are more likely to suffer ill effects from any further monetary tightening, while consumer-related stocks may prove to be relatively resilient in the face of a broader market decline.

We continue to take a considerable underweight stance in telecommunications, viewing competition in the sector as damaging to profit margins. The largest underweight in the Fund is in the financials sector, where we take a highly selective approach. We are underweight in Hong Kong financials, expecting loan growth to disappoint.

Portfolio Manager: Philip Ehrmann

Class A: GOPAX

Class B: GOPBX

Class C: GOPCX

Class R: GOPRX

Institutional Service Class: GOPSX

Institutional Class: GOPIX

2004 Annual Report 75

International Series

Gartmore China Opportunities Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		Inception1
Class A1	without sales charge2		12.61%
	with sales charge3		6.14%
Class B1	without sales charge2		12.38%
	with sales charge4		7.38%
Class C	without sales charge2		12.30%
	with sales charge5		11.30%
Class R6			12.46%
Institutional Class6			12.74%
Institutional Service Class6			12.74%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on June 29, 2004.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 1% after 6 years.
5	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
6	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore China Opportunities Fund, Morgan Stanley Capital International (MSCI) Zhong Hua Index (a) and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	MSCI Zhong Hua Index is an unmanaged, free float-adjusted market capitalization-weighted index that is designed to measure the performance of stocks in the developed markets of China and Hong Kong; the Index gives one-third of its weightings to China stocks and the remainder to Hong Kong stocks.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

*  The Shareholder Expense Example is not required for Funds operational less than six months.

76 Annual Report 2004

Gartmore China Opportunities Fund

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	96.3%
Repurchase Agreements	3.7%
	100.0%

Top Countries
Hong Kong	82.5%
China	13.8%
Other Countries	3.7%
	100.0%

Top Holdings
Asia Aluminum Holdings Ltd.	2.8%
Lianhua Supermarket Holdings Ltd.	2.7%
China Mobile Ltd.	2.6%
Lenovo Group Ltd.	2.5%
China Resources Power Holdings Co. Ltd.	2.5%
Global Bio-chem Technology Group Co. Ltd.	2.5%
Kingboard Chemical Holdings Ltd.	2.4%
Lee & Man Paper Manufacturing Ltd.	2.4%
Weichai Power Co. Ltd.	2.4%
New World Development	2.3%
Other Countries	74.9%
	100.0%

2004 Annual Report 77

International Series

Statement of Investments

October 31, 2004

Gartmore China Opportunities Fund

Common Stocks (96.3%)
	Shares or
	Principal Amount		Value
CHINA (13.8%)
Building & Construction (3.4%)
Baoye Group Co. Ltd. (c)		238,000	$	129,192
Zhejiang Expressway Co. Ltd. (c)		142,000		96,041
				225,233
Electric Utility (1.7%)
Datang International Power Generation Co. Ltd. (c)		140,000		111,751
Electronics (1.7%)
TPV Technology Ltd. (c)		192,000		115,382
Metals & Mining (1.7%)
Jiangxi Copper Co. Ltd. (c)		221,000		117,303
Mining (1.4%)
Yanzhou Coal Mining Co. Ltd. (c)		70,000		92,925
Oil & Gas (2.0%)
China Oilfield Services Ltd. (c)		458,000		133,880
Transportation (1.9%)
Hainan Meilan International Airport Co. Ltd. (c)		158,000		129,119
				925,593
HONG KONG (82.5%)
Building & Construction (2.8%)
Asia Aluminum Holdings Ltd. (c)		1,688,000		191,068
Building - Residential & Commercial (2.2%)
Shanghai Forte Land Co. Ltd.		474,000		146,224
Chemicals (2.4%)
Kingboard Chemical Holdings Ltd. (c)		78,000		163,624
Commercial Services (0.8%)
Linmark Group Ltd. (c)		154,000		51,820
Computers (2.5%)
Lenovo Group Ltd. (c)		472,000		169,908
Diversified Operations (0.8%)
Melco International Development Ltd. (c)		48,000		53,653
Electric Utility (2.5%)
China Resources Power Holdings Co. Ltd. (c)		292,000		167,207
Electrical & Electronic (1.5%)
Johnson Electric Holdings Ltd. (c)		103,500		103,191
Electronic Equipment (2.1%)
GOME Electrical Appliances Holdings Ltd. (c)		174,600		140,202
Electronics (2.2%)
Solomon Systech International Ltd.		590,000		149,331
Engine Manufacturing (2.4%)
Weichai Power Co. Ltd.		78,000		160,842
Finance (1.3%)
Hong Kong Exchanges & Clearing Ltd. (c)		38,000		86,526
Food Products (4.5%)
Global Bio-chem Technology Group Co. Ltd. (c)		210,000		165,029
Heng Tai Consumables Group Ltd. (c)		1,030,000		138,913
				303,942
Health Care Products (2.1%)
Hengan International Group Co. Ltd. (c)		264,000		140,838
Hotels, Restaurants & Leisure (3.4%)
Cafe De Coral Holdings Ltd. (c)		90,000		97,143
Hong Kong and Shanghai Hotels Ltd. (c) (The)		172,500		130,763
				227,906
Information Services (1.2%)
HC International, Inc. (c)		330,000		80,536
Insurance (2.0%)
Ping AN Insurance (Group) Co. of China Ltd. (b)		87,000		136,926
Machinery & Machine Tools (1.7%)
Techtronic Industries Co. Ltd. (c)		56,000		111,732
Medical Products (1.2%)
Shandong Weigao Group Medical Polymer Co. Ltd.		832,000		79,102
Oil & Gas (3.2%)
PetroChina Co. Ltd. (c)		174,000		91,485
Xinao Gas Holdings Ltd. (c)		216,000		120,718
				212,203
Paper Products (2.4%)
Lee & Man Paper Manufacturing Ltd. (c)		222,000		162,597
Publishing (2.5%)
Culturecom Holdings Ltd. (c)		1,414,000		90,149
Oriental Press Group Ltd. (c)		216,000		79,793
				169,942

78 Annual Report 2004

Common Stocks (continued)
	Shares or
	Principal Amount		Value
HONG KONG (continued)
Real Estate (17.8%)
Cheung Kong (Holdings) Ltd. (c)		18,000	$	149,086
China Overseas Land and Investment Ltd. (c)		636,000		138,991
Henderson Land Development Co. Ltd. (c)		22,000		102,088
Hongkong Land Holdings Ltd. (c)		75,000		154,772
Hopewell Holdings Ltd. (c)		69,000		148,498
Midland Realty Holdings Ltd. (c)		314,000		139,593
New World Development Co. Ltd. (c)		178,000		155,789
Sino Land Co. Ltd. (c)		116,000		99,185
Sun Hung Kai Properties Ltd. (c)		12,000		111,073
				1,199,075
Retail (9.3%)
Convenience Retail Asia Ltd. (c)		300,000		101,177
Lianhua Supermarket Holdings Ltd. (c)		156,000		182,578
Lifestyle International Holdings Ltd.		100,000		141,326
Sa Sa International Holdings Ltd. (c)		220,000		91,925
Wumart Stores, Inc. (b) (c)		65,000		111,070
				628,076
Telecommunications (2.6%)
China Mobile Ltd. (c)		60,000		174,580
Textiles (3.1%)
Fountain Set Holdings Ltd. (c)		108,000		81,367
Texwinca Holdings Ltd. (c)		140,000		126,923
				208,290
Transportation (2.0%)
Cosco Pacific Ltd. (c)		76,000		131,368
				5,550,709
Total Common Stocks				6,476,302
Repurchase Agreements (3.7%)

Repurchase Agreements (3.7%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $103,744 (Fully collateralized by Treasury Notes and U.S. Agency Securities)	$	103,729		103,729
Nomura Securities, 1.75% dated 10/29/04, due 11/01/04, repurchase price $144,954 (Fully collateralized by AA Corporate Bonds and U.S. Agency Securities)		144,933		144,933
Total Repurchase Agreements				248,662
Total Investments (Cost $6,278,797) (a) — 100.0%				6,724,964
Liabilities in excess of other assets — 0.0%				(78)
NET ASSETS — 100.0%			$	6,724,886

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.
(c)	Fair Valued Security.

See notes to financial statements.

2004 Annual Report 79

International Series

Gartmore Emerging Markets Fund

For the annual period ended Oct. 31, 2004, the Gartmore Emerging Markets Fund returned 16.97% (Class A at NAV) versus 19.40% for its benchmark, the Morgan Stanley Capital International Emerging Markets Free (MSCI EMF) Index. For broader comparison, the average return for the Fund’s Lipper peer category of Emerging Markets Funds was 19.50%.

During the first five months of the reporting period, emerging equity markets strongly outperformed relative to the markets of the developed world, supported by a background of improving global economic growth, low/declining interest rates and rising demandas well as pricesfor raw materials. During this period, the Fund performed very strongly relative to its benchmark. Overweight positions in Thailand, Indonesia, and Mexico added to performance. In addition, stock selection was very strong, particularly in the financials and materials sectors, and in South Korea and Hong Kong.

Early in the second quarter of 2004, the asset class sold off sharply as China’s government took measures to cool runaway economic growth. In addition, fears surfaced that an imminent rise in U.S. interest rates would put the brakes on global economic recovery. Particularly hard hit were the Asian region markets and the more cyclical sectors, such as materials and industrials. The Fund’s exposure to the materials and industrial sectors therefore detracted from performance as did overweights in the more cyclical Asian markets (e.g., Taiwan and South Korea).

For the full reporting period, strong stock selection contributed positively to Fund performance. The Fund’s exposure to South Korea and Russia was particularly beneficial, due largely to stock selection in both countries’ markets. The top three performers in the Fund’s portfolio were holdings in South Korea (an underweight in both LG Card Co., Ltd. and Samsung Electronics Co. Ltd. plus an overweight in Dongkuk Steel Mill Co., Ltd.—contributing 2.55%, 1.13%, 0.78%, respectively, to the Fund’s performance), while an underweight by the Fund in troubled Russian oil giant OAO NK YUKOS was the fifth-largest contributor to Fund performance. The Fund’s stock selection in the information technology and consumer discretionary sectors, however, made a negative contribution to Fund performance. The Fund’s selection of underperforming technology stocks in Taiwan, such as Accton Technology Corp. (-0.88%) and Taiwan Semiconductor Manufacturing Co. Ltd. (-0.59%) contributed to the negative performance.

At the other end of the scale, underweights by the Fund in South Africa proved to be detrimental, as this market outperformed despite our concerns that the South African currency was significantly overvalued. The Fund’s overweight exposure to the Latin American region is the result of its holdings in Brazil and Mexico, where we maintain overweight and off-index positions in a small number of conviction stocks. Strong retail sales growth in Mexico supports our view that the country continues to benefit from improving economic conditions globally.

Fund positions in the financials and materials sectors added value. Among the Fund’s top contributors to performance were the off-index positions in South African bank Absa Group Ltd. (0.68%) and mining stocks Yanzhou Coal Mining Co. Ltd. (0.51%), Gerdau S.A. (0.49%) and Grupo México S.A. de C.V. (0.40%). Fund performance was hindered by overweight positions in a number of (particularly Taiwanese) information technology stocks. The information technology sector lagged as a result of profits downgrades and weak pricing power.

We remain selective within the Emerging Europe, Middle East and Asia (EMEA) region; in our opinion, positive sentiment attached to the European Union convergence is an overstretched theme. We are therefore comfortable with our underweights in markets such as Hungry and the Czech Republic.

Portfolio Managers: Philip Ehrmann and Peter Dalgliesh

Class A: GEGAX

Class B: GEGBX

Class C: GEGCX

Class R: GEMRX

Institutional Service Class: GEGSX

Institutional Class: GEGIX

80 Annual Report 2004

Gartmore Emerging Markets Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		16.97%		5.18%
	with sales charge3		10.27%		3.70%
Class B	without sales charge2		16.14%		4.48%
	with sales charge4		11.14%		4.06%
Class C5	without sales charge2		16.21%		4.83%
	with sales charge6		15.21%		4.83%
Class R 7,9			16.56%		4.57%
Institutional Class8,9			17.25%		5.56%
Institutional Service Class9			17.25%		5.56%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on August 30, 2000.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges.
6	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
7	These returns until the creation of Class R shares (12/31/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
8	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.
9	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Emerging Markets Fund, S&P/ IFCI Emerging Markets Composite Index(a), Morgan Stanley Capital International Emerging Markets Free Index (MSCI Emerging Markets)(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The S&P/ IFCI Emerging Markets Composite Index is an unmanaged index that aims to represent the performance of the stocks in emerging stock markets that are available to foreign institutional investors.
(b)	The MSCI Emerging Markets is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets.
(c)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

2004 Annual Report 81

Gartmore Emerging Markets Fund

International Series

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Emerging Markets Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,061	$	9.74			1.88%
	Hypothetical	1	$	1,000	$	1,016	$	9.57			1.88%
Class B	Actual		$	1,000	$	1,056	$	13.18			2.55%
	Hypothetical	1	$	1,000	$	1,012	$	12.98			2.55%
Class C	Actual		$	1,000	$	1,057	$	13.19			2.55%
	Hypothetical	1	$	1,000	$	1,012	$	12.98			2.55%
Class R	Actual		$	1,000	$	1,059	$	10.61			2.05%
	Hypothetical	1	$	1,000	$	1,015	$	10.43			2.05%
Institutional Service Class	Actual		$	1,000	$	1,062	$	8.03			1.55%
	Hypothetical	1	$	1,000	$	1,017	$	7.89			1.55%
Institutional Class (a)	Actual		$	1,000	$	1,108	$	5.53	(b)		1.55%
	Hypothetical	1	$	1,000	$	1,009	$	5.30	(b)		1.55%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

82 Annual Report 2004

Gartmore Emerging Markets Fund

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	93.6%
Participation Notes	3.8%
Repurchase Agreements	1.6%
Warrants	0.2%
Other Assets in excess of Liabilities	0.8%
	100.0%

Top Countries
Korea	20.0%
Brazil	11.2%
South Africa	10.8%
Taiwan	9.7%
Mexico	7.0%
Russia	6.7%
Malaysia	5.1%
Thailand	4.9%
Hong Kong	4.0%
China	3.0%
Other Countries	17.6%
	100.0%

Top Holdings
Samsung Electronics GDR	4.1%
Anglo American PLC	2.4%
Petroleo Brasileiro SA ADR	2.2%
Surgutneftegaz ADR	1.9%
America Movil SA de CV ADR	1.8%
Klabin SA	1.6%
Taiwan Semiconductor Manufacturing Co. Ltd.	1.6%
INI Steel Co.	1.5%
Sasol Ltd.	1.5%
LUKOIL ADR	1.5%
Other Holdings	79.9%
	100.0%

2004 Annual Report 83

International Series

Statement of Investments

October 31, 2004

Gartmore Emerging Markets Fund

Common Stocks (93.6%)
	Shares or
	Principal Amount		Value
ARGENTINA (0.8%)
Oil & Gas (0.8%)
Tenaris SA ADR		4,100	$	183,557
BRAZIL (11.2%)
Banking (2.1%)
Banco Itau Holding Financeira SA ADR		4,000		242,000
Uniao de Bancos Brasileiros SA GDR		9,200		243,340
				485,340
Beverages (0.7%)
Companhia de Bebidas das Americas ADR		6,400		158,720
Electric Utility (1.4%)
Companhia Energetica de Minas Gerais		14,290,500		330,243
Mining (0.6%)
Companhia Vale do Rio Doce, Class A		7,300		132,402
Oil & Gas (3.1%)
Petroleo Brasileiro SA ADR		14,550		516,670
Petroleo Brasileiro SA ADR (c)		5,400		176,040
				692,710
Paper Products (1.6%)
Klabin SA		225,800		371,590
Retail - Food Products (0.3%)
Companhia Brasileira de Distribuicao		3,100		73,780
Grupo Pao de Acucar ADR
Steel (0.6%)
Gerdau SA ADR		8,600		126,936
Telecommunications (0.8%)
Tele Norte Leste Participacoes SA ADR		13,800		180,504
				2,552,225
CHILE (0.9%)
Food (0.9%)
Cencosud SA ADR (b)		9,800		217,778
CHINA (3.0%)
Mining (1.0%)
Yanzhou Coal Mining Co. Ltd. (d)		174,000		230,984
Oil & Gas (0.7%)
CNOOC Ltd. (d)		308,500		158,931
Telecommunications (1.3%)
China Telecom Corp. Ltd. (d)		960,000		308,905
				698,820
HONG KONG (4.0%)
Agriculture (0.7%)
Global Bio-chem Technology Group Co Ltd. (d)		208,000		163,457
Computer Services (0.6%)
Lenovo Group Ltd. (d)		390,000		140,390
Electric Utility (1.1%)
China Resources Power Holdings Co Ltd. (d)		434,000		248,520
Insurance (0.9%)
Ping An Insurance (Group) Co. oF		128,000		201,454
China Ltd. (b)
Semiconductors (0.7%)
Solomon Systech International Ltd.		632,000		159,961
				913,782
HUNGARY (0.4%)
Chemicals (0.4%)
BorsodChem Rt		8,700		86,449
INDIA (0.9%)
Financial Services (0.9%)
ICICI Bank Ltd. ADR		12,450		196,212
INDONESIA (2.9%)
Banking (0.9%)
PT Bank Mandiri (d)		1,250,500		216,190
Mining (1.3%)
PT Bumi Resources Tbk (b) (d)		3,675,500		294,058
Telecommunication Services (0.7%)
PT Telekomunikasi Indonesia (d)		336,000		160,776
				671,024
ISRAEL (1.6%)
Computer Software (1.0%)
Retalix Ltd. ADR (b)		12,200		216,428
Electronics (0.6%)
Orbotech Ltd. (b)		8,600		145,426
				361,854
KOREA (20.0%)
Automobile (0.7%)
Ssangyong Motor Co. (b) (d)		24,700		151,830
Banking (1.2%)
Hana Bank (d)		10,940		273,555

84 Annual Report 2004

Common Stocks (continued)
	Shares or
	Principal Amount		Value
KOREA (continued)
Building - Residential/ Commercial (1.4%)
Hyundai Development Co. (d)		23,600	$	317,056
Communications Equipment (0.8%)
KH Vatec Co. Ltd. (d)		6,900		184,863
Diversified Operations (1.0%)
GS Holdings Corp. (b)		10,550		224,288
Electronics (5.1%)
Samsung Electronics Co. Ltd. (d)		500		196,602
Samsung Electronics GDR		7,200		952,199
				1,148,801
Financial (1.1%)
Woori Finance Holdings Co. Ltd. (d)		36,380		262,169
Financial Services (0.6%)
Daishin Securities Co. Ltd.		16,700		127,169
Household Durables (1.8%)
LG Electronics, Inc. (d)		5,100		288,271
LG Electronics, Inc. (d)		4,100		131,523
				419,794
Industrials (0.4%)
Hanjin Shipping Co. Ltd. (d)		5,000		96,567
Retail (1.0%)
Shinsegae Co. Ltd. (d)		800		225,241
Steel (1.5%)
INI Steel Co. (d)		33,000		350,526
Telecommunications (1.5%)
SK Telecom Co. Ltd. (d)		1,780		280,233
SK Telecom Co. Ltd. ADR		3,800		74,974
				355,207
Tobacco (0.9%)
KT&G Corp.		7,500		207,682
Transportation (1.0%)
Korean Air Lines Co. Ltd. (d)		15,500		237,834
				4,582,582
MALAYSIA (5.1%)
Banking (2.0%)
CIMB Berhad (d)		161,400		208,069
Public Bank Berhad (d)		147,600		270,019
				478,088
Electronics (1.0%)
Tenega Nasional (d)		75,000		219,147
Telecommunications (1.3%)
Telekom Malaysia Berhad (d)		99,800		302,197
Transportation (0.8%)
Malaysia International Shipping Corp. Berhad (d)		50,800		178,024
				1,177,456
MEXICO (7.0%)
Construction (0.5%)
Urbi Desarrolloas Urbanos, SA de CV (b)		28,500		106,238
Diversified Operations (0.9%)
Grupo Carso S.A. de CV		42,458		202,042
Financial Services (1.3%)
Grupo Financiero Banorte SA de CV		61,700		289,969
Media (1.1%)
TV Azteca SA de CV ADR		26,000		260,520
Retail (1.5%)
Organizacion Soriana SA de CV		37,861		121,501
Wal-Mart de Mexico SA de CV		71,300		233,323
				354,824
Telecommunications (1.7%)
America Movil SA de CV ADR		9,200		404,800
				1,618,393
POLAND (1.6%)
Banking (1.3%)
Bank Pekao SA (d)		7,900		300,754
Construction (0.3%)
Globe Trade Centre SA (b)		2,200		77,676
				378,430
RUSSIA (6.7%)
Brewery (0.7%)
Efes Breweries International GDR (b)		5,700		158,916
Oil & Gas (4.5%)
LUKOIL ADR (d)		2,700		337,608
OAO Gazprom ADR (d)		6,800		254,490
Surgutneftegaz ADR		11,021		439,738
				1,031,836
Steel (0.6%)
Mechel ADR (b)		6,800		139,400
Telecommunications (0.9%)
AO VimpelCom ADR (b)		1,850		210,900
				1,541,052
SOUTH AFRICA (10.8%)
Banking (1.5%)
ABSA Group Ltd.		30,800		335,136

2004 Annual Report 85

Statement of Investments (Continued)

October 31, 2004

Gartmore Emerging Markets Fund (Continued)

International Series

Common Stocks (continued)
	Shares or
	Principal Amount		Value
SOUTH AFRICA (continued)
Diversified Operations (0.6%)
Barloworld Ltd. (d)		10,700	$	148,753
Financial Services (0.7%)
African Bank Investments Ltd. (d)		70,400		163,785
Home Furnishings (1.0%)
Lewis Group Ltd. (b)		43,800		227,269
Mining (3.4%)
Anglo American PLC (d)		24,900		541,337
Impala Platinum Holdings Ltd. (d)		3,000		239,913
				781,250
Oil & Gas (1.5%)
Sasol Ltd. (d)		17,100		338,426
Paper Products (1.0%)
Sappi Ltd (d)		15,500		223,137
Retail (1.1%)
Massmart Holdings Ltd.		37,900		263,438
				2,481,194
TAIWAN (9.7%)
Banking (1.4%)
E.Sun Financial Holding Co. Ltd. (d)		470,000		321,372
Computer Services (1.3%)
Acer, Inc. (d)		198,000		290,397
Electronics (0.9%)
Ichia Technologies, Inc. (d)		130,449		199,074
Insurance (0.9%)
Cathay Financial Holding Co. Ltd. (d)		105,000		201,327
Networking Products (0.5%)
Accton Technology Corp. (d)		273,000		112,141
Petrochemicals (0.8%)
Fomosa Chemicals & Fibre Corp. (d)		109,000		184,700
Semiconductors (2.1%)
Taiwan Semiconductor Manufacturing Co. Ltd. (d)		273,397		363,134
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		19,166		145,087
				508,221
Steel (0.7%)
China Steel Corp. (d)		166,000		167,152
Textiles (1.1%)
Far Eastern Textile Ltd. (d)		372,599		248,790
				2,233,174
THAILAND (4.9%)
Banking (0.7%)
Kasikornbank Public Co. Ltd. (b) (d)		139,900		160,360
Electric Utility (0.5%)
Ratchaburi Electricity		138,600		125,008
Financial Services (0.8%)
TISCO Finance Public Co. Ltd. (b)		342,800		189,122
Petrochemicals (0.9%)
Aromatics PC (b)		134,700		208,524
Telecommunications (1.2%)
Shin Corporation Public Co. Ltd.		281,100		248,132
Transportation (0.8%)
Thai Airways International Public Co Ltd. (d)		159,900		188,516
				1,119,662
TURKEY (2.1%)
Automotive (0.9%)
Ford Otomotiv Sanayi AS		26,029,500		206,541
Commercial Banks (1.2%)
Denizbank A.S. (b)		146,136,000		285,434
				491,975
Total Common Stocks				21,505,619
Participation Notes (3.8%)
INDIA (3.8%)
Banking (0.1%)
ICICI Bank Ltd., expiring 03/30/07 (d)	$	3,700		24,383
Diversified Operations (1.1%)
Larsen & Toubro Ltd. (d)		11,000		201,300
National Thermal (b) (d)		40,600		54,810
				256,110
Oil & Gas (1.3%)
Oil and Natural Gas Corp. Ltd., 10/31/05 (d)		17,200		299,280
Software & Computer Services (0.6%)
Satyam Computer Services Ltd., 03/07/23 (d)		17,700		146,025
Tobacco (0.7%)
ITC Ltd., 04/07/30 (d)		6,300		151,074
Total Participation Notes				876,872

86 Annual Report 2004

Repurchase Agreements (1.6%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $153,626 (Fully collateralized by Treasury Notes and U.S. Agency Securities)	$	153,604	$	153,604
Nomura Securities, 1.75% dated 10/29/04, due 11/01/04, repurchase price $214,651 (Fully collateralized by AA Corporate Bonds and U.S. Agency Securities)		214,620		214,620
Total Repurchase Agreements				368,224
Warrants (0.2%)
THAILAND (0.2%)
Financial Services (0.2%)
Kiatnakin Finance Public Co. Ltd., 01/18/11		129,900		43,938
Total Warrants				43,938
Total Investments (Cost $20,825,864) (a) — 99.2%				22,794,653
Other assets in excess of liabilities — 0.8%				194,559
NET ASSETS — 100.0%			$	22,989,212

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.
(c)	Preferred Stock.
(d)	Fair Valued Security.

ADR      American Depositary Receipt

GDR      Global Depositary Receipt

See notes to financial statements.

2004 Annual Report 87

International Series

Gartmore International Growth Fund

For the annual period ended Oct. 31, 2004, the Gartmore International Growth Fund returned 11.60% (Class A at NAV) versus 19.67% for its benchmark, the Morgan Stanley Capital International (MSCI) All Country World Free excluding U.S. Index. For broader comparison, the average return for the Fund’s Lipper peer category of International Multi-Cap Core Funds was 17.06%.

Through the end of 2003 and the first quarter of 2004, the global economic recovery continued to gather momentum, enhanced by the relatively accommodative global interest-rate environment. During that time, the emerging equity markets continued to outperform the developed equity universe— particularly the Latin American region, which was bolstered by the improving global economic backdrop. Overweight positions in both Japan and China benefited Fund performance; however, an overweight position in Hong Kong hurt the Fund.

March and April of 2004 witnessed a turnaround in the fortunes of global markets. U.S. employment data came in surprisingly weak, and the prospect of global monetary tightening weighed on the markets after the Chinese government implemented measures designed to cool economic growth. These developments particularly upset the emerging markets universe, which underperformed sharply during the second quarter of 2004. Stock selection in Japan detracted from Fund performance during the latter half of the period.

A combination of country allocation and stock selection was responsible for the Fund’s underperformance during the overall period. On the one hand, exposure to China was most beneficial for Fund performance, both in terms of country allocation and stock selection. This positive factor, however, was more than offset by negative stock selection in Japan. A number of Japanese holdings were among the worst-performing positions in the Fund, including UMC JAPAN, NEC Electronics Corp., Nissan Motor Co., Ltd. and Kyorin Pharmaceutica Co., Ltd., which, respectively, detracted -0.58%, -0.53% and -0.47% from the Fund’s performance. Nonetheless, our position in Japanese financial services firm UFJ Holdings, Inc. was the strongest-performing position in the Fund’s portfolio during the annual period with a 0.51% performance contribution.

At the sector level, our consumer discretionary exposure was the most detrimental to Fund performance, due to overweights in Nissan Motor, and, News Corp plus an underweight in Toyota Motor Corp. The Fund’s information technology exposure similarly contributed to negative performance, as a result of overweights in a number of semiconductor-related stocks, including Taiwan Semiconductor Manufacturing Co. Ltd., Samsung Electronics Co. Ltd. and UMC JAPAN. The Fund’s overweight exposure to the materials sector added value. BHP Billiton, Companhia Vale do Rio Doce and Rio Tinto Ltd. were all among the top 20 contributors to relative performance with contributions of, respectively, 0.36%, 0.24%, and 0.21%.

In terms of country bias, the United Kingdom is the largest country overweight in the Fund, reflecting our positive macroeconomic outlook for the region. We also hold overweights in a few European countries, such as Germany, because of its attractive valuation as compared to the United States and the United Kingdom. We have markedly scaled back our exposure to Japan and now hold a considerable underweight in the country, on indications that the economic picture is deteriorating somewhat, while the high oil price also adds to concerns about Japan’s economic growth.

The Fund is now considerably overweight in the more cyclical materials sector, reflecting the positive outlook for the sector, which is largely a function of still-buoyant Chinese demand for raw materials. This positioning also ties in with our overweight country allocation to China, where we believe that overheating will be prevented by the government without an economic “hard landing.” The Fund also has taken an overweight stance in the energy sector, in a clear bid to leverage the high oil price.

Portfolio Manager: Team

Class A: GIGAX

Class B: GIGBX

Class C: GIGCX

Class R: GIRRX

Institutional Service Class: GIGSX

Institutional Class: GIGIX

88 Annual Report 2004

Gartmore International Growth Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		11.60%		-5.81%
	with sales charge3		5.13%		-7.14%
Class B	without sales charge2		10.85%		-6.49%
	with sales charge4		5.85%		-6.94%
Class C5	without sales charge2		10.79%		-6.37%
	with sales charge6		9.79%		-6.37%
Class R 7,9			11.14%		-6.43%
Institutional Class8,9			11.91%		-5.52%
Institutional Service Class9			11.91%		-5.52%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on August 30, 2000.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges.
6	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
7	These returns until the creation of Class R shares (12/31/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
8	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.
9	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore International Growth Fund, Morgan Stanley Capital International All Country World Free ex U.S. Index (MSCI AC World ex U.S.)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The MSCI AC World Free ex U.S. is an index that contains companies that are replicas of their local markets not including any securities in the United States.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

2004 Annual Report 89

Gartmore International Growth Fund

International Series

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
International Growth Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,039	$	8.51			1.66%
	Hypothetical	1	$	1,000	$	1,017	$	8.45			1.66%
Class B	Actual		$	1,000	$	1,036	$	12.28			2.40%
	Hypothetical	1	$	1,000	$	1,013	$	12.22			2.40%
Class C	Actual		$	1,000	$	1,035	$	12.28			2.40%
	Hypothetical	1	$	1,000	$	1,013	$	12.22			2.40%
Class R	Actual		$	1,000	$	1,037	$	9.88			1.93%
	Hypothetical	1	$	1,000	$	1,015	$	9.82			1.93%
Institutional Service Class	Actual		$	1,000	$	1,041	$	7.18			1.40%
	Hypothetical	1	$	1,000	$	1,018	$	7.13			1.40%
Institutional Class (a)	Actual		$	1,000	$	1,051	$	4.86	(b)		1.40%
	Hypothetical	1	$	1,000	$	1,010	$	4.78	(b)		1.40%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

90 Annual Report 2004

Gartmore International Growth Fund

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	94.3%
Repurchase Agreements	5.1%
Other Assets in excess of Liabilities	0.6%
	100.0%

Top Countries
United Kingdom	31.9%
Japan	11.4%
France	8.8%
Germany	6.8%
Italy	6.4%
Switzerland	4.0%
Canada	3.8%
Spain	3.1%
Australia	2.9%
Norway	2.8%
Other Countries	18.1%
	100.0%

Top Holdings
BP PLC	3.4%
Telefonica SA	3.1%
E. ON AG	2.2%
HSBC Holdings PLC	2.2%
Sun Hung Kai Properties Ltd.	2.1%
Suncor Energy, Inc.	2.1%
Peninsular & Oriental Steam Navigation Co.	2.1%
Vedanta Resources PLC	2.0%
Banca Intesa SPA	2.0%
Rolls-Royce Group	2.0%
Other Holdings	76.8%
	100.0%

2004 Annual Report 91

International Series

Statement of Investments

October 31, 2004

Gartmore International Growth Fund

Common Stocks (94.3%)
	Shares or
	Principal Amount		Value
AUSTRALIA (2.9%)
Coal (0.7%)
Excel Coal Ltd.		18,019	$	59,221
Minerals (1.2%)
BHP Billiton Ltd. (c)		10,709		110,747
Multimedia (1.0%)
News Corp., Ltd. (The) (c)		10,570		84,903
				254,871
AUSTRIA (0.5%)
Oil & Gas (0.5%)
OMV AG (c)		194		46,564
BRAZIL (1.0%)
Mining (1.0%)
Companhia Vale de Rio Doce ADR		4,704		85,613
CANADA (3.8%)
Oil & Gas (3.8%)
Encana Corp.		1,688		83,587
Petro-Canada		1,109		60,444
Suncor Energy, Inc.		5,386		183,912
				327,943
CHINA (1.5%)
Mining (1.5%)
Yanzhou Coal Mining Co. Ltd. (c)		98,000		130,095
FINLAND (1.1%)
Oil & Gas (1.1%)
Fortum Oyj (c)		6,239		95,408
FRANCE (8.8%)
Banking (5.0%)
BNP Paribas SA (c)		2,560		174,361
Credit Agricole SA (c)		4,480		131,372
Societe Generale (c)		1,410		130,906
				436,639
Beverages (0.9%)
Pernod — Richard SA (c)		588		81,414
Health & Personal Care (0.5%)
Sanofi-Aventis SA (c)		595		43,397
Oil & Gas (1.8%)
Total Fina Elf SA (c)		750		156,081
Utilities (0.6%)
Suez SA (c)		2,280		53,263
				770,794
GERMANY (6.8%)
Chemicals (1.6%)
BASF AG (c)		2,255		141,235
Computer Software & Services (1.0%)
SAP AG (c)		525		89,428
Electric (2.3%)
E. ON AG (c)		2,306		188,072
Gas & Electric Utility (0.4%)
RWE AG (c)		710		37,576
Manufacturing (1.0%)
Siemens AG (c)		1,178		87,883
Telecommunications (0.5%)
Deutsche Telekom AG (b) (c)		2,364		45,419
				589,613
HONG KONG (2.1%)
Real Estate (2.1%)
Sun Hung Kai Properties Ltd. (c)		20,000		185,122
ITALY (6.4%)
Banking (2.0%)
Banca Intesa SPA (c)		42,876		175,648
Oil & Gas (1.9%)
ENI SPA (c)		7,144		162,972
Public Thoroughfares (1.0%)
Autostrade SPA (c)		4,076		89,046
Telecommunications (1.5%)
Telecom Italia SPA (c)		40,070		133,386
				561,052
JAPAN (11.4%)
Automotive (1.6%)
Honda Motor Co. Ltd. (c)		700		33,936
Toyota Motor Corp. (c)		2,700		104,546
				138,482
Building & Construction (0.8%)
Daiwa House Industry Co. Ltd. (c)		7,000		71,427
Financial Services (3.2%)
Credit Saison Co. Ltd. (c)		3,700		118,142
Mitsubishi Tokyo Financial Group, Inc. (c)		10		84,607
Sumitomo Mitsui Financial Group, Inc. (c)		11		71,427
				274,176
Import/ Export (0.6%)
Mitsubishi Corp. (c)		5,000		55,132

92 Annual Report 2004

Common Stocks (continued)
	Shares or
	Principal Amount		Value
JAPAN (continued)
Mining (0.9%)
Sumitomo Metal & Mining Co. Ltd. (c)		12,000	$	80,999
Pharmaceuticals (0.9%)
Takeda Chemical Industries Ltd. (c)		1,600		77,128
Real Estate (1.8%)
Mitsui Fudosan Co. Ltd. (c)		15,000		158,904
Steel (0.5%)
Nippon Steel Corp. (c)		19,000		44,358
Transportation (0.5%)
West Japan Railway Co. (c)		10		39,842
Transportation-Marine (0.6%)
Nippon Yusen Kabushiki Kaisha (c)		10,000		50,245
				990,693
NETHERLANDS (2.7%)
Food (0.8%)
Koninlijke Numico NV (b) (c)		1,952		65,770
Oil & Gas (1.9%)
Royal Dutch Petroleum Co. (c)		3,146		170,595
				236,365
NORWAY (2.8%)
Oil & Gas (1.5%)
Norsk Hydro ASA (c)		1,850		136,063
Oil — Field Services (1.3%)
Stolt Offshore SA (b) (c)		21,897		110,370
				246,433
PORTUGAL (2.0%)
Telecommunications (2.0%)
Portugal Telecom, SGPS, SA (c)		15,324		172,734
SOUTH KOREA (1.5%)
Electronics (1.5%)
Hynix Semiconductor, Inc. (b) (c)		11,280		128,014
SPAIN (3.1%)
Telecommunications (3.1%)
Telefonica SA (c)		16,478		272,713
Television (0.0%)
Antena 3 Television SA (b) (c)		18		1,154
				273,867
SWITZERLAND (4.0%)
Banking (1.2%)
UBS AG (c)		1,500		108,274
Chemicals (1.4%)
Syngenta AG (c)		1,310		124,622
Pharmaceuticals (1.4%)
Novartis AG (c)		1,850		88,388
Roche Holding AG (c)		290		29,596
				117,984
				350,880
UNITED KINGDOM (31.9%)
Aerospace & Defense (2.0%)
Rolls- Royce Group, B Shares (b)		1,171,830		2,147
Rolls-Royce Group PLC (c)		36,850		175,359
				177,506
Banking (3.5%)
HSBC Holdings PLC (c)		11,646		187,877
Royal Bank of Scotland Group PLC (c)		4,100		120,687
				308,564
Beverages (2.0%)
Diageo PLC (c)		3,000		40,123
SABMiller PLC (c)		9,284		133,725
				173,848
Building & Construction (1.0%)
CRH PLC (c)		3,627		86,539
Cruise Lines (0.9%)
Carnival PLC (c)		1,530		80,933
Food & Household Products (1.5%)
Cadbury Schweppes PLC (c)		15,860		131,970
Gas & Electric Utility (2.4%)
International Power PLC (b) (c)		40,230		118,784
Scottish Power PLC (c)		11,155		90,157
				208,941
Hotels & Motels (1.5%)
Hilton Group PLC (c)		26,939		127,368
Household Products (1.0%)
Reckitt Benckiser PLC (c)		3,094		84,752
Metals (2.0%)
Vedanta Resources PLC (c)		26,887		176,329

2004 Annual Report 93

Statement of Investments (Continued)

October 31, 2004

Gartmore International Growth Fund (Continued)

International Series

Common Stocks (continued)
	Shares or
	Principal Amount		Value
UNITED KINGDOM (continued)
Mining (2.7%)
Anglo American PLC (c)		4,200	$	92,269
Rio Tinto PLC (c)		5,429		142,427
				234,696
Oil & Gas (4.2%)
BP PLC (c)		30,574		296,383
Shell Transport & Trading Co. PLC (c)		8,734		68,781
				365,164
Pharmaceuticals (0.8%)
AstraZeneca PLC (c)		1,650		67,566
Telecommunications (1.8%)
Vodafone Group PLC (c)		60,981		156,504
Transportation (2.1%)
Peninsular & Oriental Steam Navigation Co. (c)		36,670		180,147
Water Utility (2.5%)
United Utilities PLC (c)		8,227		86,738
United Utilities PLC, A Shares		18,450		131,505
				218,243
				2,779,070
Total Common Stocks				8,225,131
Repurchase Agreements (5.1%)

Repurchase Agreements (5.1%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $186,655 (Fully collateralized by U.S. Agency Securities & U.S. Treasury Notes)	$	186,627		186,627
Nomura Securities, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $260,802 (Fully collateralized by AA Rated Corporate Bonds & U.S. Agency Securities)		260,764		260,764
Total Repurchase Agreements				447,391
Total Investments (Cost $8,035,505) (a) — 99.4%				8,672,522
Other assets in excess of liabilities — 0.6%				49,436
NET ASSETS — 100.0%			$	8,721,958

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.
(c)	Fair Valued Security.

ADR      American Depositary Receipt

See notes to financial statements.

94 Annual Report 2004

Statements of Assets and Liabilities

October 31, 2004

			Gartmore			Gartmore			Gartmore
			China Opportunities			Emerging Markets			International Growth
			Fund			Fund			Fund
Assets:
Investments, at value (cost $6,030,135; $20,457,640 and $7,588,114; respectively)			$	6,476,302		$	22,426,429		$	8,225,131
Repurchase agreements, at cost				248,662			368,224			447,391
	Total Investment			6,724,964			22,794,653			8,672,522
Foreign currency, at value (cost $38,339; $255,117 and $75,947; respectively)				38,314			258,200			76,693
Interest and dividends receivable				3,460			53,786			9,862
Receivable for capital shares issued				4,995			13,984			—
Receivable for investments sold				29,918			85,082			227,136
Unrealized appreciation on forward foreign currency contracts				1			95			172
Receivable from adviser				23,475			6,668			6,369
Reclaims receivable				—			—			6,959
Prepaid expenses and other assets				40,998			29,831			28,790
		Total Assets		6,866,125			23,242,299			9,028,503
Liabilities:
Payable for investments purchased				127,569			215,482			290,010
Unrealized depreciation on forward foreign currency contracts				7			—			868
Payable for capital shares redeemed				—			500			—
Accrued expenses and other payables
	Investment advisory fees			6,895			20,017			6,579
	Fund administration and transfer agent fees			5,729			6,984			4,773
	Distribution fees			216			7,143			3,006
	Administrative servicing fees			68			1,327			63
	Other			755			1,634			1,246
		Total Liabilities		141,239			253,087			306,545
Net Assets			$	6,724,886		$	22,989,212		$	8,721,958
Represented by:
Capital			$	6,042,582		$	19,410,306		$	10,570,296
Accumulated net investment income (loss)				(2,049	)		(95	)		695
Accumulated net realized gains (losses) from investment, futures, and foreign currency transactions				238,171			1,606,444			(2,493,923	)
Net unrealized appreciation (depreciation) on investments, futures, and translation of assets and liabilities denominated in foreign currencies				446,182			1,972,557			644,890
Net Assets			$	6,724,886		$	22,989,212		$	8,721,958
Net Assets:
Class A Shares			$	1,028,535		$	13,897,922		$	3,095,984
Class B Shares				19,086			2,899,503			2,694,971
Class C Shares				38,125			2,217,270			111,827
Class R Shares				1,124			1,075			1,046
Institutional Service Class Shares				1,127			3,737,323			2,628,984
Institutional Class Shares				5,636,889			236,119			189,146
Total			$	6,724,886		$	22,989,212		$	8,721,958
Shares Outstanding (unlimited number of shares authorized):
Class A Shares				91,493			1,132,227			397,409
Class B Shares				1,700			241,985			356,700
Class C Shares				3,395			182,568			14,709
Class R Shares				100			89			138
Institutional Service Class Shares				100			300,620			333,333
Institutional Class Shares				501,062			18,991			23,983
Total				597,850			1,876,480			1,126,272
Net Asset Value:
Class A Shares			$	11.24		$	12.27		$	7.79
Class B Shares (a)			$	11.23		$	11.98		$	7.56
Class C Shares (b)			$	11.23		$	12.14		$	7.60
Class R Shares			$	11.24		$	12.01		$	7.58
Institutional Service Class Shares			$	11.25		$	12.43		$	7.89
Institutional Class Shares			$	11.25		$	12.43		$	7.89
Maximum Offering Price Per Share (100%/100%-maximum sales charge) of net asset value adjusted to the nearest cent):
Class A Shares			$	11.93		$	13.02		$	8.27
Maximum Sales Charge — Class A Shares				5.75	%		5.75	%		5.75	%

(a)	For Class B shares, the redemption price per share varies by length of time shares are held.
(b)	For Class C shares, the redemption price per share is reduced by 1.00% for shares held less than one year.

See notes to financial statements.

2004 Annual Report 95

International Series

Statements of Operations

For the Year Ended October 31, 2004

		Gartmore China			Gartmore			Gartmore
		Opportunities			Emerging			International
		Fund (a)			Markets Fund			Growth Fund
INVESTMENT INCOME:
Interest income		$	1,734		$	8,253		$	—
Dividend income (net of foreign withholding tax $0; $51,054 and $21,929; respectively)			41,494			437,279			138,488
	Total Income		43,228			445,532			138,488
Expenses:
Investment advisory fees			24,092			214,405			78,402
Fund administration and transfer agent fees			7,535			38,320			18,401
Distribution fees Class A			334			28,813			7,245
Distribution fees Class B			20			25,735			25,684
Distribution fees Class C			26			22,579			768
Distribution fees Class R			1			3			3
Administrative servicing fees Class A			67			9,928			172
Administrative servicing fees Class R			1			2			2
Professional fees			27,826			4,573			1,870
Registration and filing fees			16,488			45,918			45,220
Other			5,958			14,496			5,710
	Total expenses before reimbursed expenses		82,348			404,772			183,477
Expenses reimbursed			(50,098	)		(19,484	)		(35,945	)
	Total Expenses		32,250			385,288			147,532
Net Investment Income (Loss)			10,978			60,244			(9,044	)
REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) on investment transactions			238,171			2,279,971			873,916
Net realized gains (losses) on futures transactions			—			—			(22,329	)
Net realized gains (losses) on foreign currency transactions			(342	)		(18,184	)		5,754
Net realized gains (losses) on investment, futures, and foreign currency transactions			237,829			2,261,787			857,341
Net change in unrealized appreciation/depreciation on investments, futures, and translation of assets and liabilities denominated in foreign currencies			446,182			(553,350	)		(22,049	)
Net realized/unrealized gains (losses) on investments, futures, and foreign currencies			684,011			1,708,437			835,292
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		$	694,989		$	1,768,681		$	826,248

(a) For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

96 Annual Report 2004

Statements of Changes in Net Assets

										Gartmore
		Gartmore Fund			Gartmore					International Growth Fund
		China Opportunities			Emerging Markets Fund
		Period Ended			Year Ended			Year Ended		Year Ended			Year Ended
		October 31, 2004 (a)			October 31, 2004			October 31, 2003		October 31, 2004			October 31, 2003
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)		$	10,978		$	60,244		$	41,277	$	(9,044	)	$	13,570
Net realized gains (losses) on investment, futures, and foreign currency transactions			237,829			2,261,787			824,505		857,341			745,468
Net change in unrealized appreciation/ depreciation on investments, futures, and translation of assets and liabilities denominated in foreign currencies			446,182			(553,350	)		2,771,822		(22,049	)		928,479
Change in net assets resulting from operations			694,989			1,768,681			3,637,604		826,248			1,687,517
Distributions to Class A Shareholders from:
Net investment income			(1,204	)		(48,254	)		—		—			—
Distributions to Class B Shareholders from:
Net investment income			(5	)		(3,983	)		—		—			—
Distributions to Class C Shareholders from:
Net investment income			—			(3,008	)		—		—			—
Distributions to Class R Shareholders from:
	From net investment income		(1	)		(3	) (b)		—		—			—
Distributions to Institutional Service Class Shareholders from:
Net investment income			(2	)		(16,749	)		—		—			—
Distributions to Institutional Class Shareholders from:
Net investment income			(11,473	)		(831	) (a)		—		—			—
Change in net assets from shareholder distributions			(12,685	)		(72,828	)		—		—			—
Change in net assets from capital transactions			6,042,582			7,033,976			6,022,767		541,965			44,605
Change in net assets			6,724,886			8,729,829			9,660,371		1,368,213			1,732,122
Net Assets:
Beginning of period			—			14,259,383			4,599,012		7,353,745			5,621,623
End of period		$	6,724,886		$	22,989,212		$	14,259,383	$	8,721,958		$	7,353,745

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.

See notes to financial statements.

2004 Annual Report 97

Financial Highlights

Selected Data for Each Share of Capital Outstanding

International Series

Gartmore China Opportunities Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized		Total
	Value,		Investment			Gains		from
	Beginning		Income			(Losses) on		Investment
	of Period		(Loss)			Investments		Activities
Class A Shares
Period Ended October 31, 2004 (d)	$	10.00		0.01			1.25		1.26
Class B Shares
Period Ended October 31, 2004 (d)	$	10.00		0.01			1.23		1.24
Class C Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.01	)		1.24		1.23
Class R Shares
Period Ended October 31, 2004 (d)	$	10.00		0.01			1.24		1.25
Institutional Service Class Shares
Period Ended October 31, 2004 (d)	$	10.00		0.02			1.25		1.27
Institutional Class Shares
Period Ended October 31, 2004 (d)	$	10.00		0.02			1.25		1.27

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net						Net Asset
	Investment			Total			Value, End		Total
	Income			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2004 (d)		(0.02	)		(0.02	)	$	11.24		12.61%	(f)
Class B Shares
Period Ended October 31, 2004 (d)		(0.01	)		(0.01	)	$	11.23		12.38%	(f)
Class C Shares
Period Ended October 31, 2004 (d)		—			—		$	11.23		12.30%	(f)
Class R Shares
Period Ended October 31, 2004 (d)		(0.01	)		(0.01	)	$	11.24		12.46%	(f)
Institutional Service Class Shares
Period Ended October 31, 2004 (d)		(0.02	)		(0.02	)	$	11.25		12.74%	(f)
Institutional Class Shares
Period Ended October 31, 2004 (d)		(0.02	)		(0.02	)	$	11.25		12.74%	(f)

[Additional columns below]

[Continued from above table, first column(s) repeated]

Ratios / Supplemental Data

Ratio of Net

Ratio of Net

Ratio of

Investment

Investment

Expenses

Income (Loss)

Net

Ratio of

Income

(Prior to

(Prior to

Assets at End of

Expenses

(Loss)

Reimbursements)

Reimbursements)

Period

to Average

to Average

to Average

to Average

Portfolio

(000s)

Net Assets

Net Assets

Net Assets (b)

Net Assets (b)

Turnover (c)

Class A Shares

Period Ended October 31, 2004 (d)

$

1,029

1.95%

(g)

0.37%

(g)

5.57%

(g)

(3.25%

) (g)

50.76%

Class B Shares

Period Ended October 31, 2004 (d)

$

19

2.65%

(g)

(0.14%

) (g)

6.09%

(g)

(3.57%

) (g)

50.76%

Class C Shares

Period Ended October 31, 2004 (d)

$

38

2.65%

(g)

(1.42%

) (g)

6.93%

(g)

(5.69%

) (g)

50.76%

Class R Shares

Period Ended October 31, 2004 (d)

$

1

2.40%

(g)

(0.18%

) (g)

4.86%

(g)

(2.64%

) (g)

50.76%

Institutional Service Class Shares

Period Ended October 31, 2004 (d)

$

1

1.70%

(g)

0.51%

(g)

3.97%

(g)

(1.75%

) (g)

50.76%

Institutional Class Shares

Period Ended October 31, 2004 (d)

$

5,637

1.65%

(g)

0.59%

(g)

4.17%

(g)

(1.93%

) (g)

50.76%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For period from June 29, 2004 (commencement of operations) through October 31, 2004.
(f)	Not annualized.
(g)	Annualized.

See notes to financial statements.

98 Annual Report 2004

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Gartmore Emerging Markets Fund

			Investment Activities											Distributions
								Net Realized
								and
	Net Asset		Net					Unrealized			Total
	Value,		Investment					Gains			from			Net						Net Asset
	Beginning		Income			Redemption		(Losses) on			Investment			Investment			Total			Value, End		Total
	of Period		(Loss)			Fees		Investments			Activities			Income			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2000 (d)	$	10.00		(0.01	)		—		(1.87	)		(1.88	)		(0.01	)		(0.01	)	$	8.11		(18.90%	) (h)
Year Ended October 31, 2001	$	8.11		0.01			—		(2.14	)		(2.13	)		—			—		$	5.98		(26.24%	)
Year Ended October 31, 2002	$	5.98		(0.03	)		—		0.85			0.82			—			—		$	6.80		13.71%
Year Ended October 31, 2003	$	6.80		0.03			—		3.71			3.74			—			—		$	10.54		55.00%
Year Ended October 31, 2004	$	10.54		0.05			0.03		1.70			1.78			(0.05	)		(0.05	)	$	12.27		16.97%
Class B Shares
Period Ended October 31, 2000 (d)	$	10.00		(0.01	)		—		(1.88	)		(1.89	)		(0.01	)		(0.01	)	$	8.10		(19.00%	) (h)
Year Ended October 31, 2001	$	8.10		(0.03	)		—		(2.13	)		(2.16	)		—			—		$	5.94		(26.67%	)
Year Ended October 31, 2002	$	5.94		(0.08	)		—		0.85			0.77			—			—		$	6.71		12.96%
Year Ended October 31, 2003	$	6.71		—			—		3.62			3.62			—			—		$	10.33		53.95%
Year Ended October 31, 2004	$	10.33		(0.03	)		0.03		1.67			1.67			(0.02	)		(0.02	)	$	11.98		16.14%
Class C Shares
Period Ended October 31, 2001 (e)	$	7.57		(0.01	)		—		(1.54	)		(1.55	)		—			—		$	6.02		(20.48%	) (h)
Year Ended October 31, 2002	$	6.02		(0.08	)		—		0.86			0.78			—			—		$	6.80		12.96%
Year Ended October 31, 2003	$	6.80		—			—		3.67			3.67			—			—		$	10.47		53.97%
Year Ended October 31, 2004	$	10.47		(0.02	)		0.03		1.68			1.69			(0.02	)		(0.02	)	$	12.14		16.21%
Class R Shares
Period Ended October 31, 2004 (f)	$	11.20		0.03			0.03		0.78			0.84			(0.03	)		(0.03	)	$	12.01		7.50%	(h)
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	10.00		—			—		(1.88	)		(1.88	)		(0.01	)		(0.01	)	$	8.11		(18.90%	) (h)
Year Ended October 31, 2001	$	8.11		0.04			—		(2.13	)		(2.09	)		(0.01	)		(0.01	)	$	6.01		(25.81%	)
Year Ended October 31, 2002	$	6.01		(0.02	)		—		0.87			0.85			—			—		$	6.86		14.14%
Year Ended October 31, 2003	$	6.86		0.08			—		3.72			3.80			—			—		$	10.66		55.39%
Year Ended October 31, 2004	$	10.66		0.09			0.03		1.72			1.84			(0.07	)		(0.07	)	$	12.43		17.25%
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	11.26		0.03			0.03		1.15			1.21			(0.04	)		(0.04	)	$	12.43		10.79%	(h)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2000 (d)	$	1,366		2.15%	(i)		(0.35%	) (i)		7.24%	(i)		(5.44%	) (i)		10.88%
Year Ended October 31, 2001	$	1,066		2.15%			0.18%			5.93%			(3.60%	)		97.85%
Year Ended October 31, 2002	$	1,996		2.01%			(0.49%	)		2.41%			(0.89%	)		57.86%
Year Ended October 31, 2003	$	9,070		1.88%			0.61%			2.45%			0.05%			146.04%
Year Ended October 31, 2004	$	13,898		1.88%			0.41%			1.99%			0.31%			134.11%
Class B Shares
Period Ended October 31, 2000 (d)	$	1,353		2.75%	(i)		(0.95%	) (i)		7.96%	(i)		(6.16%	) (i)		10.88%
Year Ended October 31, 2001	$	1,164		2.75%			(0.40%	)		6.67%			(4.32%	)		97.85%
Year Ended October 31, 2002	$	1,443		2.71%			(1.18%	)		3.22%			(1.69%	)		57.86%
Year Ended October 31, 2003	$	2,010		2.55%			0.07%			3.18%			(0.56%	)		146.04%
Year Ended October 31, 2004	$	2,900		2.55%			(0.27%	)		2.65%			(0.37%	)		134.11%
Class C Shares
Period Ended October 31, 2001 (e)	$	10		2.75%	(i)		(0.85%	) (i)		8.68%	(i)		(6.78%	) (i)		97.85%
Year Ended October 31, 2002	$	15		2.72%			(1.12%	)		3.28%			(1.68%	)		57.86%
Year Ended October 31, 2003	$	1,398		2.55%			(0.12%	)		2.95%			(0.52%	)		146.04%
Year Ended October 31, 2004	$	2,217		2.55%			(0.16%	)		2.64%			(0.25%	)		134.11%
Class R Shares
Period Ended October 31, 2004 (f)	$	1		2.15%	(i)		0.26%	(i)		2.28%	(i)		0.13%	(i)		134.11%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	1,354		1.82%	(i)		(0.02%	) (i)		6.95%	(i)		(5.15%	) (i)		10.88%
Year Ended October 31, 2001	$	1,004		1.82%			0.49%			5.60%			(3.29%	)		97.85%
Year Ended October 31, 2002	$	1,145		1.73%			(0.21%	)		2.24%			(0.72%	)		57.86%
Year Ended October 31, 2003	$	1,781		1.55%			1.07%			2.18%			0.44%			146.04%
Year Ended October 31, 2004	$	3,737		1.55%			0.81%			1.66%			0.70%			134.11%
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	236		1.55%	(i)		0.81%	(i)		1.71%	(i)		0.65%	(i)		134.11%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For period from August 30, 2000 (commencement of operations) through October 31, 2000.
(e)	For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(f)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(g)	For period from June 29, 2004 (commencement of operations) through October 31, 2004.
(h)	Not annualized.
(i)	Annualized.

See notes to financial statements.

2004 Annual Report 99

Financial Highlights

Selected Data for Each Share of Capital Outstanding

International Series

Gartmore International Growth Fund

			Investment Activities
								Net Realized
								and
	Net Asset		Net					Unrealized			Total
	Value,		Investment					Gains			from			Net Asset
	Beginning		Income			Redemption		(Losses) on			Investment			Value, End		Total
	of Period		(Loss)			Fees		Investments			Activities			of Period		Return (a)
Class A Shares
Period Ended October 31, 2000 (d)	$	10.00		—			—		(1.14	)		(1.14	)	$	8.86		(11.40%	) (h)
Year Ended October 31, 2001	$	8.86		(0.02	)		—		(2.65	)		(2.67	)	$	6.19		(30.14%	)
Year Ended October 31, 2002	$	6.19		0.01			—		(0.82	)		(0.81	)	$	5.38		(13.09%	)
Year Ended October 31, 2003	$	5.38		(0.01	)		0.03		1.58			1.60		$	6.98		29.74%
Year Ended October 31, 2004	$	6.98		0.01			0.01		0.79			0.81		$	7.79		11.60%
Class B Shares
Period Ended October 31, 2000 (d)	$	10.00		(0.01	)		—		(1.14	)		(1.15	)	$	8.85		(11.50%	) (h)
Year Ended October 31, 2001	$	8.85		(0.07	)		—		(2.64	)		(2.71	)	$	6.14		(30.62%	)
Year Ended October 31, 2002	$	6.14		(0.03	)		—		(0.81	)		(0.84	)	$	5.30		(13.68%	)
Year Ended October 31, 2003	$	5.30		(0.05	)		0.03		1.54			1.52		$	6.82		28.68%
Year Ended October 31, 2004	$	6.82		(0.05	)		0.01		0.78			0.74		$	7.56		10.85%
Class C Shares
Period Ended October 31, 2001 (e)	$	7.72		(0.02	)		—		(1.53	)		(1.55	)	$	6.17		(20.08%	) (h)
Year Ended October 31, 2002	$	6.17		(0.03	)		—		(0.81	)		(0.84	)	$	5.33		(13.61%	)
Year Ended October 31, 2003	$	5.33		(0.05	)		0.03		1.55			1.53		$	6.86		28.71%
Year Ended October 31, 2004	$	6.86		(0.01	)		0.01		0.74			0.74		$	7.60		10.79%
Class R Shares
Period Ended October 31, 2004 (f)	$	7.25		0.02			0.01		0.30			0.33		$	7.58		4.55%	(h)
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	10.00		0.01			—		(1.15	)		(1.14	)	$	8.86		(11.40%	) (h)
Year Ended October 31, 2001	$	8.86		—			—		(2.64	)		(2.64	)	$	6.22		(29.80%	)
Year Ended October 31, 2002	$	6.22		0.03			—		(0.83	)		(0.80	)	$	5.42		(12.86%	)
Year Ended October 31, 2003	$	5.42		0.01			0.03		1.59			1.63		$	7.05		30.07%
Year Ended October 31, 2004	$	7.05		0.02			0.01		0.81			0.84		$	7.89		11.91%
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	7.51		—			0.01		0.37			0.38		$	7.89		5.06%	(h)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2000 (d)	$	2,975		1.85%	(i)		0.05%	(i)		4.01%	(i)		(2.11%	) (i)		46.31%
Year Ended October 31, 2001	$	2,156		1.85%			(0.30%	)		4.01%			(2.46%	)		236.28%
Year Ended October 31, 2002	$	1,965		1.76%			0.20%			2.10%			(0.14%	)		226.70%
Year Ended October 31, 2003	$	2,592		1.65%			0.39%			2.37%			(0.33%	)		304.72%
Year Ended October 31, 2004	$	3,096		1.65%			0.06 %			2.10%			(0.38%	)		262.09%
Class B Shares
Period Ended October 31, 2000 (d)	$	2,950		2.45%	(i)		(0.54%	) (i)		4.75%	(i)		(2.84%	) (i)		46.31%
Year Ended October 31, 2001	$	2,078		2.45%			(0.89%	)		4.75%			(3.19%	)		236.28%
Year Ended October 31, 2002	$	1,840		2.46%			(0.50%	)		2.85%			(0.89%	)		226.70%
Year Ended October 31, 2003	$	2,395		2.40%			(0.36%	)		3.12%			(1.08%	)		304.72%
Year Ended October 31, 2004	$	2,695		2.40%			(0.70%	)		2.84%			(1.14%	)		262.09%
Class C Shares
Period Ended October 31, 2001 (e)	$	10		2.45%	(i)		(1.10%	) (i)		6.72%	(i)		(5.37%	) (i)		236.28%
Year Ended October 31, 2002	$	10		2.46%			(0.53%	)		2.95%			(1.02%	)		226.70%
Year Ended October 31, 2003	$	16		2.40%			(0.37%	)		3.12%			(1.09%	)		304.72%
Year Ended October 31, 2004	$	112		2.40%			(0.23%	)		2.87%			(0.70%	)		262.09%
Class R Shares
Period Ended October 31, 2004 (f)	$	1		2.00%	(i)		0.31%	(i)		2.65%	(i)		(0.33%	)  (i)		262.09%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	2,954		1.52 %	(i)		0.39%	(i)		3.75%	(i)		(1.84%	) (i)		46.31%
Year Ended October 31, 2001	$	2,073		1.52%			0.03%			3.72%			(2.17%	)		236.28%
Year Ended October 31, 2002	$	1,807		1.48%			0.48%			1.85%			0.11%			226.70%
Year Ended October 31, 2003	$	2,350		1.40%			0.64%			2.12%			(0.08%	)		304.72%
Year Ended October 31, 2004	$	2,629		1.40%			0.30 %			1.84%			(0.14%	)		262.09%
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	189		1.40%	(i)		0.03%	(i)		1.94%	(i)		(0.52%	) (i)		262.09%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For period from August 30, 2000 (commencement of operations) through October 31, 2000.
(e)	For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(f)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(g)	For period from June 29, 2004 (commencement of operations) through October 31, 2004.
(h)	Not annualized.
(i)	Annualized.

See notes to financial statements.

100 Annual Report 2004

Concept Series

Gartmore High Yield Bond Fund

For the annual period ended Oct. 31, 2004, the Gartmore High Yield Bond Fund returned 10.65% (Class A at NAV) versus 12.30% for its benchmark, the Citigroup High-Yield Market Index. For broader comparison, the average return for this Fund’s Lipper peer category of High Current Yield Funds was 11.03%.

High-yield bonds rode a wave of positive conditions—strong economic growth, low inflation, and relatively low default rates—and finished the second straight year with double-digit positive returns. Lower-rated credit issues such as CCC-rated bonds led performance, while some of the higher-rated areas such as BBB- and Split BBB-rated issues finished slightly in negative territory. Early in the period, the Fund held an underweight position within the riskier areas of the market—those that outperformed—yet we increased the Fund’s position in that space as the year progressed; the move to lower-rated issues helped Fund performance.

On a sector level, credit selection generally contributed to Fund performance more than sector or industry allocation. For example, the health-care sector added nicely to Fund returns returning 5.8% even though the sector as a whole lagged because investors shunned more traditionally defensive areas such as health care. The metals/mining sector added 0.60% to Fund performance, in part because strong demand from China kept revenues strong for those companies. In an example of a positive sector allocation decision, the Fund held no exposure to airlines issues during a time when these issues detracted heavily from performance for the Index, a downturn that began around July 30 and continued to the end of the reporting period.

The Fund’s holdings within the wireless sector performed well relative to the Index, also due to positive credit selection, yet the wireless sector generally turned in weak performance for the Fund and the overall Index. Among wireless holdings, Triton PCS Holdings, Inc., a wireless communications company, detracted 0.25% from Fund returns. This issue was hurt because investors had expected the company to be involved in merger activity, yet no suitors arrived. Electric utility company Calpine Corp. also detracted from Fund returns, partly because the company was burdened with too much debt. Calpine detracted 0.16% from the Fund’s overall return.

We are optimistic about the high-yield sector’s growth prospects. We believe that many companies are in good financial shape and have seen the ratio of credit upgrades to downgrades stabilize a bit. The economy also appears to be in a position to continue moderate-to-strong growth, allowing us to maintain a comfortable overweight position in lower-rated bonds, an area that we believe will outperform. Overall, we do not expect any broad sector themes that would require us to reposition the Fund’s portfolio. We plan to continue emphasizing quality credit selection within a range of sectors. The chemicals, containers, technology and cable sectors are all areas that we believe could outperform in the coming year.

Portfolio Manager: Karen Bater

Class A: NYBAX

Class B: NYBBX

Class C: NYBCX

Class R: GHYRX

Institutional Service Class: NHYSX

Institutional Class: GHBIX

2004 Annual Report 101

Concept Series

Gartmore High Yield Bond Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		10.65%		2.35%
	with sales charge3		5.44%		1.32%
Class B	without sales charge2		9.92%		1.60%
	with sales charge4		4.92%		1.32%
Class C5	without sales charge2		9.92%		1.37%
	with sales charge6		8.92%		1.37%
Class R 7,9			10.25%		1.66%
Institutional Class8,9			10.92%		2.74%
Institutional Service Class9			10.90%		2.73%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on December 29, 1999.
2	These returns do not reflect the effects of sales charges (SC).
3	A 4.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges.
6	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
7	These returns until the creation of Class R shares (12/31/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
8	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.
9	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore High Yield Bond Fund, Citigroup U.S. High-Yield Market Index (a), CS First Boston Global High Yield Corporate Bond Index (b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The Citigroup U.S. High-Yield Market Index is an unmanaged index of high-yield debt securities and is a broad market measure. The Fund is changing the index to which it is compared from the CS First Boston Global High Yield Corporate Bond Index to the Citigroup U.S. High-Yield Market Index because the latter index more accurately reflects trends in the high-yield debt marketplace.
(b)	The CS First Boston Global High Yield Corporate Bond Index is an unmanaged index of high-yield debt securities which gives a broad look at the public high yield debt market.
(c)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

102 Annual Report 2004

Gartmore High Yield Bond Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
High Yield Bond Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,057	$	5.22			1.01%
	Hypothetical	1	$	1,000	$	1,020	$	5.14			1.01%
Class B	Actual		$	1,000	$	1,054	$	8.78			1.70%
	Hypothetical	1	$	1,000	$	1,016	$	8.65			1.70%
Class C	Actual		$	1,000	$	1,054	$	8.83			1.71%
	Hypothetical	1	$	1,000	$	1,016	$	8.70			1.71%
Class R	Actual		$	1,000	$	1,056	$	6.51			1.26%
	Hypothetical	1	$	1,000	$	1,019	$	6.41			1.26%
Institutional Service Class	Actual		$	1,000	$	1,058	$	3.67			0.71%
	Hypothetical	1	$	1,000	$	1,021	$	3.61			0.71%
Institutional Class (a)	Actual		$	1,000	$	1,061	$	2.48	(b)		0.71%
	Hypothetical	1	$	1,000	$	1,013	$	2.43	(b)		0.71%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 103

Gartmore High Yield Bond Fund

Concept Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Corporate Bonds	88.1%
Repurchase Agreement	9.3%
Preferred Stocks	1.2%
Yankee Dollar	0.8%
Yankee Bond	0.7%
Common Stock	0.1%
Other Liabilities in excess of Assets	-0.2%
	100.0%

Top Industries
Utilities	7.6%
Oil & Gas	7.3%
Telecommunication Services	7.0%
Cable & Satellite	6.4%
Chemicals	5.7%
Healthcare	5.7%
Communication/ Mobile	4.8%
Gaming	4.6%
Containers	4.5%
Auto Parts & Equipment	4.0%
Other Industries	42.4%
	100.0%

Top Holdings
Cablevision System Corp.	1.5%
EL Paso Corp.	1.5%
Williams Cos., Inc. Series A	1.3%
Edison Mission Energy	1.2%
Georgia Pacific Corp.	1.2%
Qwest Corp. (c)	1.2%
Charter Communications Holdings LLC	1.2%
Triton PCS, Inc.	1.1%
AES Corp. (c)	1.1%
Great Atlantic & Pacific Tea Co.	1.1%
Other Companies	87.6%
	100.0%

104 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore High Yield Bond Fund

Corporate Bonds (88.1%)
	Shares or
	Principal Amount		Value
Aerospace/ Defense Equipment (1.2%)
BE Aerospace, Inc., 8.00%, 03/01/08	$	85,000	$	85,850
Sequa Corp., 9.00%, 08/01/09		125,000		139,688
Vought Aircraft Industries, Inc., 8.00%, 07/15/11		60,000		58,500
				284,038
Auto Manufacturing (0.2%)
Goodyear Tire & Rubber, 7.86%, 08/15/11		60,000		56,850
Auto Parts & Equipment (4.0%)
Accuride Corp., Series B, 9.25%, 02/01/08		85,000		86,913
Advanced Accessory Systems, 10.75%, 06/15/11		85,000		77,350
Collins & Aikman Products Corp., 10.75%, 12/31/11		80,000		79,800
Delco Remy International, Inc., 9.38%, 04/15/12		40,000		39,700
Dura Operating Corp., 9.00%, 05/01/09		40,000		38,300
Metaldyne Corp., 10.00%, 11/01/13 (c)		75,000		71,625
Rexnord Corp., 10.13%, 12/15/12		150,000		169,499
Tenneco Automotive, Inc., 11.63%, 10/15/09		85,000		90,313
TRW Automotive, Inc., 9.38%, 02/15/13		92,000		105,800
TRW Automotive, Inc., 11.00%, 02/15/13		35,000		41,650
United Rentals North America, Inc., 7.00%, 02/15/14		85,000		78,413
Williams Scotsman, Inc., 9.88%, 06/01/07		105,000		100,800
				980,163
Building & Construction (2.3%)
Building Materials Corp., 7.75%, 08/01/14 (c)		25,000		24,813
D.R. Horton, Inc., 8.50%, 04/15/12		110,000		124,025
K. Hovnanian Enterprises, 7.75%, 05/15/13		55,000		59,400
Texas Industries, Inc., 10.25%, 06/15/11		100,000		115,000
THL Buildco (Nortek Inc.), 8.50%, 09/01/14 (c)		50,000		53,000
WCI Communities, Inc., 9.13%, 05/01/12		170,000		188,700
				564,938
Building Products (1.0%)
Euramax International PLC, 8.50%, 08/15/11		85,000		90,525
U.S. Concrete, Inc., 8.38%, 04/01/14		50,000		53,438
RMCC Acquisition Co., 9.50%, 11/01/12 (c)		90,000		91,125
				235,088
Cable & Satellite (6.4%)
Adelphia Communications, 10.88%, 10/01/10 (b)		85,000		74,163
Atlantic Broadband Finance LLC, 9.38%, 01/15/14 (c)		175,000		163,844
Cablevision System Corp., 8.00%, 04/15/12 (c)		350,000		376,249
Charter Communications Holdings LLC, 8.63%, 04/01/09		350,000		281,749
Charter Communications Holdings LLC, 8.38%, 04/30/14 (c)		85,000		85,744
Echostar DBS Corp., 9.13%, 01/15/09		164,000		182,860
Mediacom LLC, 9.50%, 01/15/13		100,000		98,000
Panamsat Corp., 9.00%, 08/15/14 (c)		155,000		164,300
Young Broadcasting, Inc., 10.00%, 03/01/11		125,000		131,250
				1,558,159
Chemicals (5.7%)
BCP Caylux Holding SCA, 9.63%, 06/15/14 (c)		125,000		140,000
Crompton Corp., 9.88%, 08/01/12 (c)		55,000		60,638
Equistar Chemical Funding, 10.13%, 09/01/08		105,000		120,619
Huntsman LLC, 11.63%, 10/15/10		105,000		123,769
IMC Global, Inc., 11.25%, 06/01/11		70,000		82,250
Lyondell Chemical Co., 9.50%, 12/15/08		190,000		207,099
Millennium America, Inc., 9.25%, 06/15/08		85,000		94,775
Nalco Co., 7.75%, 11/15/11		80,000		86,600
Polyone Corp., 10.63%, 05/15/10		110,000		122,100
Resolution Performance Products, 8.00%, 12/15/09		55,000		56,925
Rhodia SA, 8.88%, 06/01/11		175,000		163,624
Solutia, Inc., 11.25%, 07/15/09 (b)		85,000		82,450
United Agriculture Products, 8.25%, 12/15/11 (c)		50,000		54,000
				1,394,849
Communication/Mobile (4.8%)
American Tower Corp., 9.38%, 02/01/09		167,000		176,603
American Tower Corp., 7.13%, 10/15/12 (c)		175,000		178,063
Dobson Cellular Systems, 8.38%, 11/01/11 (c)		45,000		46,406
Triton PCS, Inc., 9.38%, 02/01/11		175,000		128,625
Triton PCS, Inc., 8.50%, 06/01/13		300,000		275,249
Ubiquitel Operating Co., 9.88%, 03/01/11 (c)		85,000		92,013
Ubiquitel Operating Co., 9.88%, 03/01/11		85,000		92,013
Western Wireless Corp., 9.25%, 07/15/13		170,000		181,049
				1,170,021
Consumer Products/Services (1.8%)
Doane Pet Care Co., 10.75%, 03/01/10		85,000		91,800
Iron Mountain, Inc., 7.75%, 01/15/15		85,000		91,800
Reddy Ice Holdings, Inc, 10.50%, 11/01/12 (c)		260,000		175,500
Sealy Mattress Co., 8.25%, 06/15/14		85,000		89,888
				448,988
Containers (4.5%)
AEP Industries, Inc., 9.88%, 11/15/07		105,000		106,838
Constar International, 11.00%, 12/01/12		85,000		81,175
Crown Cork & Seal, 8.00%, 04/15/23		175,000		169,313
Owens-Illinois, Inc., 7.50%, 05/15/10		105,000		109,725
Pliant Corp., 11.13%, 06/15/09		30,000		26,700
Pliant Corp., 11.13%, 09/01/09		50,000		53,750

2004 Annual Report 105

Statement of Investments (Continued)

October 31, 2004

Gartmore High Yield Bond Fund (Continued)

Concept Series

Corporate Bonds (continued)
	Shares or
	Principal Amount		Value
Containers (continued)
Pliant Corp., 13.00%, 06/01/10	$	225,000	$	209,812
Silgan Holdings, Inc., 6.75%, 11/15/13		50,000		51,500
Solo Cup Co., 8.50%, 02/15/14		215,000		211,237
Tekni-Plex, Inc., 8.75%, 11/15/13 (c)		80,000		76,300
				1,096,350
Cosmetics/ Toiletries (1.0%)
Armkel LLC, 9.50%, 08/15/09		110,000		119,762
Elizabeth Arden, Inc., 7.75%, 01/15/14		110,000		117,288
				237,050
Distribution/ Wholesale (0.7%)
Aviall, Inc., 7.63%, 07/01/11		80,000		86,400
Buhrmann U.S., Inc., 8.25%, 07/01/14 (c)		90,000		89,325
				175,725
Diversified Manufacturing Operations (0.9%)
Blount Inc, 8.88%, 08/01/12		55,000		59,881
Invensys PLC, 9.88%, 03/15/11 (c)		25,000		26,125
Koppers Industry, Inc., 9.88%, 10/15/13		125,000		141,250
				227,256
E-Commerce (0.3%)
FTD, Inc., 7.75%, 02/15/14		75,000		75,188
Electronics (0.2%)
Itron, Inc., 7.75%, 05/15/12 (c)		50,000		50,625
Finance (1.5%)
Global Cash Accounting & Finance, 8.75%, 03/15/12		85,000		92,225
Labranche & Co., 9.50%, 05/15/09 (c)		60,000		60,000
Metris Cos., Inc., 10.13%, 07/15/06		90,000		90,900
Refco Finance Holdings, 9.00%, 08/01/12 (c)		110,000		118,800
				361,925
Food & Beverage (2.0%)
Great Atlantic & Pacific Tea Co., 7.75%, 04/15/07		275,000		258,500
Great Atlantic & Pacific Tea Co., 9.13%, 12/15/11		25,000		21,500
Pilgrims Pride Corp., 9.25%, 11/15/13		50,000		55,750
Pinnacle Foods Holdings, 8.25%, 12/01/13 (c)		50,000		47,250
Stater Brothers Holdings, 8.13%, 06/15/12		75,000		79,500
WH Holdings, 9.50%, 04/01/11		25,000		27,375
				489,875
Gaming (4.6%)
American Casino & Entertainment, 7.85%, 02/01/12 (c)		55,000		59,125
Boyd Gaming Corp., 6.75%, 04/15/14		105,000		110,119
Circus & Eldorado, 10.13%, 03/01/12		55,000		59,675
Hard Rock Hotel, Inc., 8.88%, 06/01/13		110,000		119,900
Herbst Gaming, Inc., 8.13%, 06/01/12 (c)		110,000		115,225
MGM Mirage, Inc., 9.75%, 06/01/07		170,000		191,250
Park Place Entertainment Corp., 8.13%, 05/15/11		210,000		245,437
Premier Entertainment Biloxi, 10.75%, 02/01/12		80,000		85,200
Station Casinos, Inc., 6.00%, 04/01/12		130,000		135,850
				1,121,781
Healthcare (5.7%)
Ameripath, Inc., 10.50%, 04/01/13		85,000		83,300
Ardent Health Services, 10.00%, 08/15/13		125,000		127,813
Beverly Enterprises, Inc., 7.88%, 06/15/14 (c)		55,000		58,919
Curative Health Services, 10.75%, 05/01/11		50,000		44,500
Healthsouth Corp., 10.75%, 10/01/08		85,000		88,613
Healthsouth Corp., 7.63%, 06/01/12		125,000		121,250
Iasis Healthcare Corp., 8.75%, 06/15/14 (c)		50,000		53,750
Omnicare, Inc., 8.13%, 03/15/11		170,000		184,449
PacifiCare Health Systems, 10.75%, 06/01/09		109,000		125,623
Res-Care, Inc., 10.63%, 11/15/08		105,000		113,400
Team Health, Inc., 9.00%, 04/01/12 (c)		50,000		49,500
Tenet Healthcare Corp., 9.88%, 07/01/14 (c)		210,000		219,974
VWR International, Inc., 6.88%, 04/15/12 (c)		105,000		111,300
				1,382,391
Insurance (0.7%)
Crum & Forster Holding Corp., 10.38%, 06/15/13		70,000		74,900
Fairfax Financial Holdings, 7.75%, 04/26/12		100,000		97,000
				171,900
Leisure (1.9%)
Carmike Cinemas, 7.50%, 02/15/14		40,000		41,050
Cinemark Inc., 9.75%, 03/15/14		85,000		60,138
Gaylord Entertainment Co., 8.00%, 11/15/13		50,000		53,875
Host Marriott LP, 7.13%, 11/01/13		100,000		107,999
Regal Cinemas, Inc., 9.38%, 02/01/12		75,000		88,875
Vail Resorts, Inc., 6.75%, 02/15/14		105,000		107,888
				459,825
Machinery/Equipment (1.2%)
Case New Holland, Inc., 9.25%, 08/01/11 (c)		85,000		96,900
NMHG Holdings Co., 10.00%, 05/15/09		170,000		188,063
				284,963
Media (1.3%)
LBI Media, Inc., 10.13%, 07/15/12		170,000		189,125
LBI Media, Inc., 11.00%, 10/15/13		170,000		123,463
				312,588

106 Annual Report 2004

Corporate Bonds (continued)
	Shares or
	Principal Amount		Value
Metals & Mining (0.6%)
AK Steel Corp., 7.88%, 02/15/09	$	85,000	$	86,275
Ispat Inland ULC, 9.75%, 04/01/14		40,000		48,600
				134,875
Oil & Gas (7.3%)
ANR Pipeline Co., 8.88%, 03/15/10		150,000		168,375
Belden & Blake Corp., 8.75%, 07/15/12 (c)		30,000		32,400
EL Paso Corp., 7.88%, 06/15/12		340,000		354,449
EL Paso Production Holdings, 7.75%, 06/01/13		200,000		208,500
Forest Oil Corp., 8.00%, 06/15/08		40,000		44,400
Giant Industries, 11.00%, 05/15/12		80,000		94,200
Petrobras International Finance, 9.13%, 07/02/13		85,000		92,650
Petroleum Geo-Services, 10.00%, 11/05/10		185,000		210,900
Premcor Refining Group, 6.13%, 05/01/11 (c)		40,000		42,200
Southern Natural Gas, 8.88%, 03/15/10		125,000		140,781
Williams Cos., Inc., 8.13%, 03/15/12		85,000		99,875
Williams Cos., Inc., Series A, 7.50%, 01/15/31		320,000		328,000
				1,816,730
Paper & Forest Products (2.1%)
Appleton Papers, Inc. Series B, 9.75%, 06/15/14		50,000		52,250
Boise Cascade LLC, 7.13%, 10/15/14 (c)		45,000		46,971
Georgia Pacific Corp., 8.88%, 02/01/10		255,000		300,262
Georgia Pacific Corp., 8.00%, 01/15/24		75,000		86,813
Stone Container Corp., 7.38%, 07/15/14 (c)		25,000		26,688
				512,984
Publishing (1.3%)
Advertising Directory Solutions, 9.25%, 11/15/12 (c)		90,000		93,938
CBD Media Holdings, 9.25%, 07/15/12 (c)		175,000		175,875
Liberty Group Publishing, 9.38%, 02/01/08		40,000		40,300
				310,113
Recreational Centers (0.6%)
Bally Total Fitness, 10.50%, 07/15/11		100,000		97,250
Town Sports International, 9.63%, 04/15/11		55,000		58,025
				155,275
Retail (2.0%)
Cole National Group, Inc., 8.88%, 05/15/12		160,000		187,000
Duane Reade, Inc., 9.75%, 08/01/11 (c)		55,000		52,800
Finlay Fine Jewelry Corp., 8.38%, 06/01/12		50,000		54,625
Jean Coutu Group PJC, Inc., 8.50%, 08/01/14 (c)		110,000		112,200
Remington Arms Co., 10.50%, 02/01/11		85,000		75,225
				481,850
Services (0.4%)
Great Lakes Dredge & Dock, 7.75%, 12/15/13		105,000		93,975
Technology (3.5%)
AMI Semiconductors, Inc., 10.75%, 02/01/13		75,000		87,938
Amkor Technology, Inc., 9.25%, 02/15/08		110,000		105,600
Lucent Technologies, 6.45%, 03/15/29		85,000		72,994
Nortel Networks Ltd., 6.13%, 02/15/06		125,000		127,813
Sanmina Corp., 10.38%, 01/15/10		170,000		199,324
UGS Corp., 10.00%, 06/01/12 (c)		110,000		123,200
Xerox Corp., 7.63%, 06/15/13		125,000		137,500
				854,369
Telecommunications Services (7.0%)
Alamosa Delaware, Inc., 12.00%, 07/31/09		85,000		90,525
Centennial Communications Corp., 8.13%, 02/01/14 (c)		125,000		126,250
Insight Midwest, 10.50%, 11/01/10		125,000		138,438
Level 3 Financing, Inc., 10.75%, 10/15/11 (c)		105,000		90,300
MCI, Inc., 5.91%, 05/01/07		9,000		8,978
MCI, Inc., 6.69%, 05/01/09		9,000		8,876
MCI, Inc., 7.74%, 05/01/14		11,000		10,601
Nextel Communications, 8.13%, 07/01/11		40,000		43,800
Nextel Communications, 5.95%, 03/15/14		170,000		173,825
Nextel Partners, Inc., 12.50%, 11/15/09		113,000		129,244
Qwest Communications International, 7.25%, 02/15/11 (c)		250,000		248,124
Qwest Corp., 9.13%, 03/15/12 (c)		255,000		287,512
Rural Cellular Corp., Series B, 9.63%, 05/15/08		260,000		244,400
SBA Telecommunications, 9.75%, 12/15/11		170,000		143,225
				1,744,098
Transportation Services (1.4%)
CHC Helicopter Corp., 7.38%, 05/01/14		105,000		111,825
Horizon Lines LLC, 9.00%, 11/01/12 (c)		80,000		86,500
Quality Distribution, 9.00%, 11/15/10 (c)		55,000		51,219
Sea Containers Ltd., 10.50%, 05/15/12		80,000		82,500
				332,044
Utilities (7.6%)
AES Corp., 8.75%, 05/15/13 (c)		235,000		271,424
Allegheny Energy Supply, 8.25%, 04/15/12 (c)		85,000		95,838
Aquila, Inc., 7.63%, 11/15/09		105,000		109,200
Calpine Canada Energy Financing, 8.50%, 05/01/08		170,000		104,550
Calpine Corp., 8.50%, 07/15/10 (c)		175,000		128,625
CMS Energy Corp., 9.88%, 10/15/07		170,000		190,825
Dynegy Holdings, Inc., 8.75%, 02/15/12		170,000		179,350
Dynegy Holdings, Inc., 9.88%, 07/15/10 (c)		105,000		119,306
Edison Mission Energy, 7.73%, 06/15/09		70,000		74,550
Edison Mission Energy, 9.88%, 04/15/11		255,000		301,537
Mission Energy Holding, 13.50%, 07/15/08		85,000		107,738

2004 Annual Report 107

Statement of Investments (Continued)

October 31, 2004

Gartmore High Yield Bond Fund (Continued)

Concept Series

Corporate Bonds (continued)
	Shares or
	Principal Amount		Value
Utilities (continued)
NRG Energy, Inc., 8.00%, 12/15/13 (c)	$	105,000	$	115,631
Reliant Resources, Inc., 9.25%, 07/15/10		50,000		55,500
TNP Enterprises, Inc., 10.25%, 04/01/10		15,000		16,125
				1,870,199
Waste Management (0.4%)
Allied Waste North America, 7.38%, 04/15/14		105,000		97,125
Total Corporate Bonds				21,544,173
Repurchase Agreements (9.3%)
Nomura Securities, 1.75% dated 10/29/04, due 11/01/04, repurchase price $1,320,720 (Fully collateralized by U.S. Agency Securities and AA Rated Corporate Bonds)		1,320,528		1,320,528
CS First Boston, 1.75% dated 10/29/04, due 11/01/04, repurchase price $945,234 (Fully collateralized by U.S. Treasury Notes and U.S. Agency Securities)		945,096		945,096
Total Repurchase Agreements				2,265,624
Preferred Stocks (1.2%)
Broadcasting (0.4%)
Spanish Broadcasting Systems, Inc., 10.75%, 10/15/13		91		99,702
Communication/ISP (0.0%)
Rhythms Netconnections, Inc., 6.75%, 03/03/12 (c) (d) (e) (f)		1,691		0
Media (0.6%)
Paxson Communications, 13.25%, 11/15/06		18		137,750
Real Estate Investment Trusts (0.2%)
Istar Financial, Inc., 7.80%, 09/29/08		2,215		57,369
Total Preferred Stocks				294,821
Yankee Dollar (0.8%)
Containers (0.8%)
Crown Euro Holdings SA, 10.88%, 03/01/13		170,000		201,875
Total Yankee Dollar				201,875
Yankee Dollar (0.7%)

Yankee Bonds (0.7%)
	Shares or
	Principal Amount		Value
Paper & Forest Products (0.7%)
Abitibi Consolidated, Inc., 7.75%, 06/15/11		75,000		79,500
Abitibi Consolidated, Inc., 6.00%, 06/20/13		85,000		81,388
Total Yankee Bonds				160,888
Common Stocks (0.1%)
Telecommunication Services (0.1%)
MCI, Inc.		1,303		22,477
Total Common Stocks				22,477
Warrants (0.0%)
Communication/Fixed (0.0%)
Maxcom Telecommunications SA, 04/01/07 (b) (c) (d) (e) (f)		46		0
Communication/ISP (0.0%)
Metricom, Inc., 02/15/10 (b) (d) (e) (f)		676		0
Total Warrants				0
Total Investments (Cost $23,310,483) (a) — 100.2%				24,489,858
Liabilities in excess of other assets — (0.2)%				(51,868)
NET ASSETS — 100.0%			$	24,437,990

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Security in default.
(c)	Represents a restricted security acquired and eligible for resale under rule 144A, which limits the resale to certain qualified buyers. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
(d)	Fair Valued Security.
(e)	Denotes a non-income producing security.
(f)	Security has been deemed illiquid. The pricing committee has deemed the security to have zero value based upon procedures adopted by the Board of Trustees.

See notes to financial statements.

108 Annual Report 2004

Concept Series

Gartmore Value Opportunities Fund

For the annual period ended Oct. 31, 2004, the Gartmore Value Opportunities Fund returned 10.72% (Class A at NAV) versus 11.73% for its benchmark, the Russell 2000® Index. For broader comparison, the average return for this Fund’s Lipper peer category of Small-Cap Core Funds was 12.93%.

Historically, we have sought to add value to the Fund through stock selection. For the annual period, stock selection was strong in the technology and producer durables sectors. Two technology names held by the Fund, Harris Corp. and Parametric Technology Corp., were particularly strong performers. Harris made an acquisition in the third quarter of 2004 that strengthened the company’s leading market position in the broadcast segment. Harris had an average weight in the portfolio of 0.70% for the period, and Parametric Technology had an average weight of 0.51%. Conversely, stock selection by the Fund was weaker in the health-care and consumer discretionary sectors. Consumer discretionary name Integrated Alarm Services Group, Inc. had a tough year as the company faced a challenging acquisition environment in the security alarm industry, yet the company still remains well positioned in many important geographic regions. Integrated Alarm Services Group had an average weighting of 0.60% during the period.

The market environment during the reporting period was challenging for “core value” investors, or those seeking to invest in the securities of companies that we deem to be undervalued. Only one other period stands out as similar—near the end of 1999 when the financial press unanimously heralded the death of “value” investing. During that time, we managed to outperform the value benchmark, given our portfolio’s bias to companies with improving earnings. We quickly passed through the speculation of the “tech bubble”—which burst in 2000, however, and headed to the other extreme, a deep value market that, for the past several years, has generally rewarded cheap stocks with little or no fundamental progress.

Except for brief, unsustainable rallies in the highly speculative areas of the market, “value” investing has made a dramatic comeback from its near death. Yet the move we have seen to deep or distressed value has been an even rarer occurrence. In such an environment, at times the Fund has struggled to outperform the benchmark. We believe that the move to “deep” value investing is coming to an end, as evidence suggests that investors are again paying attention to fundamental progress and not solely valuation. It is in this environment where we would expect greater rewards for our style and our disciplined approach to investing.

The Fund’s objective remains the same: to buy, at attractive valuations, well-positioned companies in which we see tangible evidence of fundamental improvement. The Fund’s portfolio continues to be characterized by stocks with favorable cash flow, earnings improvement and broad sector diversification. It seems just a matter of time before investors return to a more fundamentally focused investment discipline. As the next year unfolds, we expect that investors will pay closer attention to the fundamentals that we think are important for long-term investing success and that our discipline and style will yield favorable results.

Portfolio Managers:
Jeffery Petherick, CFA and Mary Champagne, CFA

Class A: GVOAX

Class B: GVOBX

Class C: GVOCX

Class R: GVORX

Institutional Service Class: GVOIX

Institutional Class: GVAIX

2004 Annual Report 109

Concept Series

Gartmore Value Opportunities Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		10.72%		10.95%
	with sales charge3		4.37%		9.60%
Class B	without sales charge2		10.04%		10.25%
	with sales charge4		5.04%		9.96%
Class C5	without sales charge2		10.06%		10.25%
	with sales charge6		9.06%		10.25%
Class R 7,9			10.39%		10.32%
Institutional Class8,9			11.05%		11.23%
Institutional Service Class9			10.91%		11.20%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on December 29, 1999.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	These returns until the creation of Class C shares (3/1/01) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class C shares would have produced because Class C shares invest in the same portfolio of securities as Class B shares and have the same expenses after any fee waivers or reimbursements. For Class C shares returns with sales charges, these returns have been restated for the applicable sales charges.
6	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
7	These returns until the creation of Class R shares (12/31/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
8	These returns until the creation of Institutional Class shares (6/29/04) include the performance of the Fund’s Institutional Service shares. The returns have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares invest in the same portfolio of securities as Institutional Service shares.
9	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Value Opportunities Fund, Russell 2000 Index (Russell 2000)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The Russell 2000 is an unmanaged index of securities of small capitalization U.S. companies.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

110 Annual Report 2004

Gartmore Value Opportunities Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Value Opportunities Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,021	$	7.11			1.40%
	Hypothetical	1	$	1,000	$	1,018	$	7.13			1.40%
Class B	Actual		$	1,000	$	1,017	$	10.34			2.04%
	Hypothetical	1	$	1,000	$	1,015	$	10.38			2.04%
Class C	Actual		$	1,000	$	1,018	$	10.35			2.04%
	Hypothetical	1	$	1,000	$	1,015	$	10.38			2.04%
Class R	Actual		$	1,000	$	1,019	$	8.17			1.61%
	Hypothetical	1	$	1,000	$	1,017	$	8.20			1.61%
Institutional Service Class	Actual		$	1,000	$	1,021	$	6.25			1.23%
	Hypothetical	1	$	1,000	$	1,019	$	6.26			1.23%
Institutional Class (a)	Actual		$	1,000	$	998	$	3.69	(b)		1.09%
	Hypothetical	1	$	1,000	$	1,011	$	3.72	(b)		1.09%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 111

Gartmore Value Opportunities Fund

Concept Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	98.1%
Repurchase Agreements	0.6%
Other Investments*	18.4%
Other Liabilities in excess of Assets**	-17.1%
	100.0%

 *  Includes value of collateral received from securities lending.

**  Includes value of collateral owed from securities lending.

Top Industries
Real Estate Investment Trusts (REIT)	9.6%
Banks: Outside New York City	7.1%
Utilities: Electrical	3.9%
Savings & Loan	3.8%
Retail	3.4%
Services: Commercial	3.2%
Production Technology Equipment	2.9%
Metal Fabricating	2.7%
Insurance: Multi-Line	2.7%
Communications Technology	2.6%
Other Industries	58.1%
	100.0%

Top Holdings
Colonial Bancgroup, Inc. (The)	1.3%
NCO Group, Inc.	1.3%
Questar Corp.	1.3%
Nationwide Health Properties, Inc.	1.3%
Affiliated Managers Group, Inc.	1.2%
Cullen/ Frost Bankers, Inc.	1.2%
Wisconsin Energy Corp.	1.2%
Westar Energy, Inc.	1.2%
Oshkosh Truck Corp.	1.2%
Bank Atlantic Bancorp, Inc., Class A	1.2%
Other Holdings	87.6%
	100.0%

112 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Value Opportunities Fund

Common Stocks (98.1%)
	Shares or
	Principal Amount		Value
Aerospace (1.6%)
Alliant Techsystems, Inc. (b)		2,200	$	126,478
Orbital Sciences Corp. (b)		20,500		212,175
Teledyne Technologies, Inc. (b)		6,600		168,762
				507,415
Air Transport (1.1%)
Offshore Logistics, Inc. (b)		9,300		336,288
Auto Parts-After Market (0.1%)
TBC Corp. (b)		1,400		31,122
Auto Parts: Original Equipment (0.7%)
Autoliv, Inc.		5,100		218,025
Auto Trucks & Parts (1.2%)
Oshkosh Truck Corp.		6,310		371,659
Banks: Outside New York City (7.1%)
AmericanWest Bancorp. (b)		1,500		29,775
Banner Corp.		1,600		47,840
BOK Financial Corp. (b)		3,532		160,741
Colonial Bancgroup, Inc. (The)		19,800		428,670
Cullen/ Frost Bankers, Inc.		8,100		396,900
First State Bancorp.		2,000		70,600
FirstMerit Corp.		13,600		355,368
Franklin Bank Corp. (b)		14,000		231,000
MBT Financial Corp.		2,100		42,399
Mercantile Bank Corp.		1,385		52,104
Nara Bankcorp., Inc.		4,000		76,440
Piper Jaffray Co. (b)		5,600		244,888
Southwest Bancorp., Inc.		4,000		93,920
				2,230,645
Biotechnology Research & Production (0.5%)
Protein Design Labs, Inc. (b)		8,600		164,690
Building: Heating & Plumbing (0.5%)
Jacuzzi Brands, Inc. (b)		20,200		174,730
Building: Roofing & Wallboard (0.8%)
ElkCorp		9,000		253,350
Chemicals (2.3%)
Airgas, Inc.		10,100		248,460
Georgia Gulf Corp.		4,100		185,607
Millennium Chemicals, Inc. (b)		10,000		214,800
Octel Corp.		1,700		32,810
OM Group, Inc. (b)		2,100		69,279
				750,956
Coal (0.7%)
Peabody Energy Corp.		3,400		216,852
Commercial Information Services (0.1%)
SOURCECORP, Inc. (b)		1,800		30,204
Communications Technology (2.6%)
CommScope, Inc. (b)		10,260		184,783
Harris Corp.		3,900		239,967
Inter-Tel, Inc.		7,587		204,849
Standard Microsystems Corp. (b)		9,700		213,594
				843,193
Computer Services, Software & Systems (2.5%)
BEA Systems, Inc. (b)		18,900		153,468
Digital River, Inc. (b)		5,100		169,830
Macromedia, Inc. (b)		10,000		271,400
Parametric Technology Corp. (b)		26,200		135,978
SS&C Technologies, Inc.		2,650		62,646
				793,322
Computer Technology (1.6%)
Intergraph Corp. (b)		4,700		117,195
Komag, Inc. (b)		17,800		302,155
RadiSys Corp. (b)		2,300		30,544
Western Digital Corp. (b)		8,800		73,304
				523,198
Consumer Electronics (0.5%)
CNET Networks, Inc. (b)		21,400		174,838
Cosmetics (1.0%)
Elizabeth Arden, Inc. (b)		13,900		333,322
Diversified Materials & Processing (0.8%)
Olin Corp.		14,000		261,800
Diversified Production (1.3%)
Pentair, Inc.		4,500		168,210
Thomas & Betts Corp.		8,800		249,392
				417,602
Drugs & Pharmaceuticals (1.5%)
Endo Pharmaceuticals Holdings, Inc. (b)		9,500		207,100
K-V Pharmaceutical Co. (b)		11,700		233,064
Sciclone Pharmaceuticals, Inc. (b)		5,000		22,750
Supergen, Inc. (b)		2,900		17,690
				480,604
Electrical & Electronic (0.6%)
Benchmark Electronics, Inc. (b)		6,000		203,820

2004 Annual Report 113

Statement of Investments (Continued)

October 31, 2004

Gartmore Value Opportunities Fund (Continued)

Concept Series

Common Stocks (continued)
	Shares or
	Principal Amount		Value
Electronics (1.1%)
Amphenol Corp., Class A (b)		3,600	$	123,588
Avid Technology, Inc. (b)		4,500		238,410
				361,998
Electronics: Medical Systems (0.1%)
Luminex Corp. (b)		2,800		21,840
Electronics: Semi-Conductors & Components (0.7%)
Atmel Corp. (b)		64,102		203,844
SIPEX Corp. (b)		5,600		32,088
				235,932
Electronics: Technology (1.1%)
Gerber Scientific, Inc. (b)		6,900		53,958
PerkinElmer, Inc.		15,200		312,208
				366,166
Energy Equipment (0.1%)
Global Power Equipment Group, Inc. (b)		2,700		21,762
Fertilizers (0.7%)
Mosaic Co. (The) (b)		14,400		216,576
Finance Companies (0.7%)
Saxon Capital, Inc. (b)		11,700		224,640
Finance-Small Loan (0.7%)
Collegiate Funding Services, Inc. (b)		19,070		235,515
Financial Data Processing Services & Systems (0.9%)
CCC Information Services Group, Inc. (b)		8,600		157,552
Hypercom Corp. (b)		18,600		120,528
				278,080
Financial Miscellaneous (0.7%)
Triad Guaranty, Inc. (b)		4,022		219,239
Foods (0.9%)
Del Monte Foods Co. (b)		15,100		161,268
Ralcorp Holding, Inc.		3,600		132,300
				293,568
Forest Products (0.5%)
Universal Forest Products, Inc.		4,500		165,038
Health Care Management Services (1.3%)
Community Health Systems, Inc. (b)		4,900		131,418
Per-Se Technologies, Inc. (b)		20,400		297,636
				429,054
Homebuilding (0.5%)
Standard Pacific Corp		2,800		157,220
Household Furnishings (0.6%)
American Woodmark Corp		1,600		59,488
Tempur-Pedic International, Inc. (b)		8,000		129,920
				189,408
Identification Control & Filter Devices (0.6%)
Artesyn Technologies, Inc. (b)		7,100		68,870
Hubbell, Inc.		2,900		132,588
				201,458
Insurance: Multi-Line (2.7%)
Allmerica Financial Corp. (b)		1,400		42,140
Assurant, Inc.		7,860		212,063
Reinsurance Group of America, Inc.		8,100		348,948
Wellchoice, Inc. (b)		6,400		267,264
				870,415
Insurance: Property & Casualty (2.3%)
Aspen Insurance Holdings Ltd.		11,557		265,811
ProAssurance Corp. (b)		8,200		292,658
Tower Group, Inc. (b)		20,000		178,200
				736,669
Investment Management Companies (2.0%)
Affiliated Managers Group, Inc. (b)		7,150		399,256
National Financial Partners Corp.		7,400		227,476
				626,732
Leisure Time (0.9%)
K2, Inc. (b)		15,000		243,300
West Marine, Inc. (b)		2,200		53,966
				297,266
Machinery: Agricultural (0.5%)
AGCO Corp. (b)		8,100		157,302
Machinery: Industrial/ Specialty (0.3%)
Joy Global, Inc.		2,600		87,854
Machinery: Oil Well Equipment & Services (1.9%)
Key Energy Services, Inc. (b)		22,000		253,000
Lufkin Industries, Inc.		1,000		35,410
National-OilWell, Inc. (b)		9,800		330,358
				618,768
Machinery: Specialty (0.1%)
Cascade Corp		1,400		41,580

114 Annual Report 2004

Common Stocks (continued)
	Shares or
	Principal Amount		Value
Medical and Dental Instruments & Supplies (0.6%)
Bio-Rad Laboratories, Inc., Class A (b)		3,400	$	176,868
Metal Fabricating (2.7%)
Commercial Metals Co		5,800		209,670
Kaydon Corp.		7,600		224,960
Maverick Tube Corp. (b)		7,100		187,227
RTI International Metals, Inc. (b)		2,800		56,084
Timken Co.		8,200		196,800
				874,741
Multi-Sector Companies (1.5%)
Carlisle Cos., Inc		5,700		331,341
Teleflex, Inc.		3,700		162,023
				493,364
Oil: Crude Producers (2.1%)
Newfield Exploration Co. (b)		5,000		291,000
Swift Energy Co. (b)		2,200		53,350
The Meridian Resource Corp. (b)		39,500		317,975
				662,325
Oil: Integrated Domestic (1.0%)
KCS Energy, Inc. (b)		22,500		306,225
Paper (0.9%)
Chesapeake Corp.		2,000		46,420
Glatfelter Co.		19,400		241,142
				287,562
Pollution Control & Environmental Services (0.2%)
Ionics, Inc. (b)		1,700		48,450
Production Technology Equipment (2.9%)
ATMI, Inc. (b)		9,461		220,914
August Technology Corp. (b)		13,800		107,571
Axcelis Technologies, Inc. (b)		36,000		309,601
Cymer, Inc. (b)		6,400		182,528
Photon Dynamics, Inc. (b)		5,564		101,821
				922,435
Publishing: Miscellaneous (0.2%)
Consolidated Graphics, Inc. (b)		1,300		55,510
Railroad Equipment (0.9%)
Wabtec Corp.		14,000		283,780
Railroads (0.4%)
RailAmerica, Inc. (b)		12,800		141,952
Real Estate Investment Trusts (REITs) (9.6%)
AMB Property Corp		9,400		352,500
American Financial Realty Trust		24,400		358,680
Ashford Hospitality Trust		37,200		360,468
Associated Estates Realty Corp.		4,000		38,040
CBL & Associates Properties, Inc.		5,300		347,415
Developers Diversified Realty Corp.		6,700		280,060
Eagle Hospitality Properties Trust, Inc. (b)		19,840		188,480
Equity Inns, Inc.		5,300		50,350
Friedman, Billings, Ramsey Group, Inc.		18,400		315,376
Nationwide Health Properties, Inc.		18,000		406,259
New Century Financial Corp.		5,400		297,810
Winston Hotels, Inc.		4,500		49,725
				3,045,163
Retail (3.4%)
Abercrombie & Fitch Co.		3,200		125,376
Fisher Scientific International, Inc. (b)		3,500		200,760
Genesco, Inc. (b)		9,800		250,880
Handleman Co.		1,300		27,963
Jos. A. Bank Clothiers, Inc. (b)		6,937		220,180
Mothers Work, Inc. (b)		292		3,781
Zale Corp. (b)		9,100		259,533
				1,088,473
Savings & Loan (3.8%)
BankAtlantic Bancorp, Inc., Class A		21,060		368,339
BankUnited Financial Corp., Class A (b)		8,140		242,165
Hudson River Bancorp., Inc.		2,700		52,947
Independence Community Bank Corp.		7,200		270,936
Webster Financial Corp.		6,000		286,800
				1,221,187
Securities Brokerage & Services (2.4%)
American Capital Strategies Ltd.		11,200		346,640
NCO Group, Inc. (b)		15,600		417,300
				763,940
Services: Commercial (3.2%)
4Kids Entertainment, Inc. (b)		1,800		32,922
Angelica Corp.		1,900		45,600
Chemed Corp.		5,100		308,295
Coinstar, Inc. (b)		2,400		61,992
Integrated Alarm Services Group, Inc. (b)		14,700		65,121
Manpower, Inc.		2,300		104,075
Pegasus Systems, Inc. (b)		9,000		93,690
Waste Connections, Inc. (b)		10,150		319,928
				1,031,623
Shipping (1.1%)
Kirby Corp. (b)		8,570		359,940

2004 Annual Report 115

Statement of Investments (Continued)

October 31, 2004

Gartmore Value Opportunities Fund (Continued)

Concept Series

Common Stocks (continued)
	Shares or
	Principal Amount		Value
Shoes (0.6%)
Finish Line, Inc., Class A (The)		6,000	$	207,780
Steel (1.3%)
Harsco Corp.		5,300		256,785
Wheeling-Pittsburgh Corp. (b)		5,500		174,075
				430,860
Telecommunications Equipment (1.0%)
Andrew Corp. (b)		15,991		223,554
C-COR, Inc. (b)		11,000		82,720
				306,274
Tobacco (0.1%)
Standard Commercial Corp.		1,200		19,116
Transportation Miscellaneous (0.2%)
SCS Transportation, Inc. (b)		2,800		50,596
Utilities: Electrical (3.9%)
PNM Resources, Inc.		8,900		207,192
Westar Energy, Inc.		18,400		385,480
Wisconsin Energy Corp.		12,000		391,680
WPS Resources Corp.		5,300		251,750
				1,236,102
Utilities: Gas Distributors (2.2%)
Cascade Natural Gas Corp.		1,500		30,390
Questar Corp.		8,500		408,000
Western Gas Resources, Inc.		8,800		257,752
				696,142
Utilities: Telecommunications (0.8%)
NII Holdings, Inc. (b)		6,000		265,620
Utilities: Water (0.1%)
California Water Service Group		1,500		44,235
Total Common Stocks				31,391,978
Repurchase Agreements (0.6%)

Repurchase Agreements (0.6%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $84,551 (Fully collateralized by Treasury Notes and U.S. Agency Securities)	$	84,538	$	84,538
Nomura Securities, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $118,135 (Fully collateralized by U.S. Agency Securities and AA Rated Corporate Bonds)		118,119		118,119
Total Repurchase Agreements				202,657
Short-Term Securities Held as Collateral for Securities Lending (18.4%)
Pool of short-term securities for Gartmore Mutual Funds — footnote 2 (Securities Lending)		5,895,220		5,895,220
Total Short-Term Securities Held as Collateral for Securities Lending				5,895,220
Total Investments (Cost $34,542,033) (a) — 117.1%				37,489,855
Liabilities in excess of other assets — (17.1)%				(5,463,334)
NET ASSETS — 100.0%			$	32,026,521

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Non-income producing securities.

See notes to financial statements.

116 Annual Report 2004

Concept Series

Gartmore Micro Cap Equity Fund

As of Nov. 30, 2004, all share classes of the Gartmore Micro Cap Equity Fund have been closed to new accounts. The Fund’s managers have determined that, given the liquidity concerns inherent in the micro-cap area of the market, the Fund can most effectively seek to continue to fulfill its investment mandate by maintaining its current asset level.

For the annual period ended Oct. 31, 2004, the Gartmore Micro Cap Equity Fund returned 22.96% (Class A at NAV) versus 9.26% for its benchmark, the Wilshire Micro-Cap® Index. For broader comparison, the average return for the Fund’s Lipper peer category of Small-Cap Core Funds was 12.93%.

One overarching factor accounted for the Fund’s positive performance during the period: stock selection. There are two ways an investment manager can influence the value of a fund’s performance—sector allocation and stock selection decisions. Together, these factors determine the under- or outperformance of a fund relative to its benchmark. During the reporting period, stock selection by the Fund in every sector was positive except for consumer discretionary, with a loss of 0.10%, and consumer staples, with a loss of 0.01%.

Particularly strong results were achieved by the Fund in health care, adding 4.90%; industrials, adding 4.67%; and information technology, adding 4.82%. In fact, on a total-effect basis (adding sector allocation and stock selection), only one sector underperformed for the Fund—telecommunications, with a loss of 0.09%. We had no exposure to telecommunications during the period. Overall, it was an outstanding year for the Fund. We would have achieved even stronger returns for our shareholders if not for our underweights in financials, health care and materials. Factoring in stock selection, though, shows that we achieved positive returns in every sector where we actively made investment decisions.

The current investment environment continues to present problems and opportunities. From a macroeconomic perspective, the economy is slowing into a more normalized growth curve. Corporate profits, therefore, are not expected to be as strong during the next reporting period as these have been during this period. Furthermore, the markets continue to watch closely the war in Iraq, the effect of high energy prices on consumers, the uneven job picture and interest rates. With these factors constituting our working backdrop, we believe that the next reporting period will turn out to be a stock-picker’s market, because the major indexes are likely to produce modest gains. This type of environment works to our advantage, because micro-cap stocks tend to be overlooked and underfollowed, which creates opportunities for investors who are focused on the fundamentals and quality companies. Working against us, however, is the shift in investors’ preferred market cap range. During the past five years, small-cap stocks have outperformed large-cap stocks, but this leadership is changing as we are beginning to see signs of large-cap leadership.

Our investment philosophy has not changed: we continue to look for companies with sustainable competitive advantages, accelerating earnings and strong balance sheets. In short, we focus on stock selection. From time to time, we may consider our relative benchmark weightings and the weightings of particular stocks, but these issues are secondary to our primary objective of finding the best-in-class companies within their respective industries. We do not give in to the temptation to follow the latest trend or chase the hottest sector. We adhere to our investment philosophy of finding good companies that can perform well during a complete market cycle. We feel that maintaining this discipline is in the best interest of our shareholders.

Portfolio Manager: Carl Wilk

Class A: GMEAX

Class B: GMEBX

Class C: GMECX

Class R: GMERX

Institutional Service Class: GMESX

Institutional Class: GMEIX

2004 Annual Report 117

Concept Series

Gartmore Micro Cap Equity Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One year		Inception1
Class A	without sales charge2		22.96%		33.13%
	with sales charge3		15.89%		29.81%
Class B	without sales charge2		22.13%		32.14%
	with sales charge4		17.13%		31.25%
Class C	without sales charge2		22.10%		32.19%
	with sales charge5		21.10%		32.19%
Class R6,7			22.45%		32.28%
Institutional Service Class7			23.26%		33.45%
Institutional Class7			23.26%		33.45%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on June 27, 2002.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
6	These returns until the creation of Class R shares (12/31/03) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because the Class R shares invest in the same portfolio of securities as Class B shares.
7	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Micro Cap Equity Fund, Wilshire Micro Cap Equity Index(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The Wilshire Micro Cap Equity Index is a capitalization-weighted index that measures small-cap stocks in the bottom “half” of the Wilshire 5000 Index.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

118 Annual Report 2004

Gartmore Micro Cap Equity Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid		Annualized
Micro Cap Equity Fund			5/1/04		10/31/04		During Period*		Expense Ratio
Class A	Actual		$	1,000	$	1,036	$	9.47		1.85%
	Hypothetical	1	$	1,000	$	1,016	$	9.42		1.85%
Class B	Actual		$	1,000	$	1,032	$	13.28		2.60%
	Hypothetical	1	$	1,000	$	1,012	$	13.23		2.60%
Class C	Actual		$	1,000	$	1,032	$	13.28		2.60%
	Hypothetical	1	$	1,000	$	1,012	$	13.23		2.60%
Class R	Actual		$	1,000	$	1,034	$	11.45		2.24%
	Hypothetical	1	$	1,000	$	1,014	$	11.40		2.24%
Institutional Service Class	Actual		$	1,000	$	1,038	$	8.19		1.60%
	Hypothetical	1	$	1,000	$	1,017	$	8.14		1.60%
Institutional Class	Actual		$	1,000	$	1,037	$	8.24		1.61%
	Hypothetical	1	$	1,000	$	1,017	$	8.20		1.61%

*	Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).
1	Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 119

Gartmore Micro Cap Equity Fund

Concept Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	90.0%
Repurchase Agreements	9.0%
Other Investments*	11.4%
Other Liabilities in excess of Assets**	-10.4%
	100.0%

 *  Includes value of collateral received from securities lending.

**  Includes value of collateral owed from securities lending.

Top Industries
Computer Software & Services	10.2%
Medical Equipment & Supplies	9.7%
Telecommunications	5.4%
Electronics	5.1%
Transportation	4.9%
Apparel	4.6%
Pharmaceuticals	4.4%
Healthcare	4.0%
Semiconductors	3.9%
Lasers	3.6%
Other Industries	44.2%
	100.0%

Top Holdings
Metrologic Instruments, Inc.	2.2%
Duratek, Inc.	2.1%
World Acceptance Corp.	2.0%
Dynamex, Inc.	2.0%
SS&C Technologies, Inc.	1.9%
Jos. A. Bank Clothiers, Inc.	1.9%
Kforce, Inc.	1.8%
American Medical Security Group, Inc.	1.8%
Mannatech, Inc.	1.8%
Lowrance Electronic Inc.	1.8%
Other Holdings	80.7%
	100.0%

120 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Micro Cap Equity Fund

Common Stocks (90.0%)
	Shares or
	Principal Amount		Value
Apparel (4.6%)
Jos. A. Bank Clothiers, Inc. (b)		70,000	$	2,221,800
Lakeland Industries, Inc. (b)		97,600		1,600,640
Perry Ellis International, Inc. (b)		70,000		1,505,000
				5,327,440
Audio/ Video Products (1.0%)
Digital Theater Systems, Inc. (b)		65,000		1,105,650
Bank Holdings Companies (1.9%)
Pacific Premier Bancorp, Inc. (b)		77,100		905,925
Royal Bancshares of Pennsylvania, Inc., Class A		46,954		1,258,367
				2,164,292
Casino Services (1.4%)
Mikohn Gaming Corp. (b)		231,800		1,645,780
Chemicals (1.2%)
American Vanguard Corp.		44,200		1,430,754
Computer Software & Services (10.2%)
Captiva Software Corp. (b)		200,000		1,968,000
Chordiant Software, Inc. (b)		500,000		1,230,000
ClickSoftware Co. (b)		800,000		1,624,000
Mobius Management Systems, Inc. (b)		107,300		733,932
QAD, Inc.		39,500		301,780
SBS Technologies, Inc. (b)		56,200		749,146
Smith Micro Software, Inc. (b)		350,000		2,012,500
SS&C Technologies, Inc.		95,000		2,245,800
Stratasys, Inc. (b)		35,000		1,024,800
				11,889,958
Consulting Services (1.6%)
Perficient, Inc. (b)		430,400		1,885,152
Containers & Packaging (0.8%)
Packaging Dynamics Corp.		63,745		879,681
Cosmetics (1.2%)
CCA Industries, Inc.		153,000		1,436,670
Data Processing (1.6%)
Innodata Isogen, Inc. (b)		368,000		1,795,840
Electronic Forms (0.5%)
DataTRAK International, Inc. (b)		49,698		546,678
Electronics (5.1%)
Cyberoptics Corp. (b)		102,200		1,155,400
Fargo Electronics (b)		71,200		933,432
LeCroy Corp. (b)		94,250		1,794,920
Lowrance Electronics, Inc.		80,000		2,036,800
				5,920,552
Financial (2.0%)
World Acceptance Corp. (b)		100,000		2,340,000
Food & Related (1.5%)
SunOpta, Inc. (b)		275,000		1,729,750
Healthcare (4.0%)
America Service Group, Inc. (b)		25,000		894,250
American Medical Security Group, Inc. (b)		65,000		2,063,750
Option Care, Inc.		125,000		1,642,500
				4,600,500
Human Resources (1.8%)
Kforce, Inc. (b)		200,000		2,118,000
Internet (0.3%)
Aladdin Knowledge Systems (b)		14,800		372,220
Lasers (3.6%)
Metrologic Instruments, Inc. (b)		135,042		2,518,533
Rofin-Sinar Technologies, Inc. (b)		55,000		1,648,350
				4,166,883
Manufacturing (1.7%)
Raven Industries, Inc.		86,000		1,940,160
Medical Equipment & Supplies (9.7%)
Angiodynamics, Inc. (b)		142,576		1,278,907
Encore Medical Corp. (b)		39,500		202,833
Hologic, Inc. (b)		60,000		1,204,800
I-Flow Corp. (b)		120,000		1,660,800
Lifeline Systems, Inc. (b)		40,000		962,000
Memry Corp. (b)		500,000		1,005,000
Microtek Medical Holdings, Inc. (b)		400,000		1,480,000
Quinton Cardiology Systems, Inc. (b)		142,037		1,384,861
ThermoGenesis Corp. (b)		350,000		1,954,749
				11,133,950
Medical Laboratories (1.5%)
Bio-Reference Laboratories, Inc. (b)		125,000		1,758,750
Medical Products (0.1%)
Vnus Medical Technologies (b)		8,300		124,832

2004 Annual Report 121

Statement of Investments (Continued)

October 31, 2004

Gartmore Micro Cap Equity Fund (Continued)

Concept Series

Common Stocks (continued)
	Shares or
	Principal Amount		Value
Office Automation & Equipment (0.9%)
TRM Corp. (b)		60,000	$	1,052,400
Oil & Gas (2.8%)
Lufkin Industries, Inc.		55,800		1,975,878
Mission Resources Corp. (b)		200,000		1,225,000
				3,200,878
Pharmaceuticals (4.4%)
Bone Care International, Inc. (b)		75,000		1,722,375
Geopharma, Inc. (b)		300,000		1,260,000
Mannatech, Inc.		120,000		2,046,000
				5,028,375
Pollution Control (2.1%)
Duratek, Inc. (b)		120,000		2,427,000
Retail (1.8%)
Sportsman’s Guide, Inc. (The) (b)		86,854		2,028,041
Semiconductors (3.9%)
Catalyst Semiconductor, Inc. (b)		194,600		1,165,654
Diodes, Inc. (b)		64,500		1,885,335
FSI International, Inc. (b)		300,000		1,399,500
				4,450,489
Services (2.1%)
Labor Ready, Inc. (b)		75,000		1,076,250
Providence Service Corp. (b)		60,000		1,108,800
Team, Inc. (b)		14,100		222,780
				2,407,830
Technology (2.5%)
Digi International, Inc. (b)		100,000		1,369,000
Excel Technology, Inc. (b)		60,000		1,513,200
				2,882,200
Telecommunications (5.4%)
Comtech Telecommunications Corp. (b)		55,000		1,507,550
EFJ, Inc. (b)		200,000		1,180,000
Micronetics, Inc. (b)		120,000		966,000
Radyne ComStream, Inc. (b)		121,400		892,290
Westell Technologies, Inc., Class A (b)		300,000		1,683,000
				6,228,840
Transportation (4.9%)
Celadon Group, Inc. (b)		100,000		1,945,000
Dynamex, Inc. (b)		110,000		2,277,000
HUB Group, Inc., Class A (b)		35,000		1,407,700
				5,629,700
Veterinary Diagnostics (0.6%)
Neogen Corp. (b)		40,000		747,200
Vitamins & Nutrition Products (1.3%)
Natural Alternatives International, Inc. (b)		150,000		1,470,000
Total Common Stocks				103,866,445
Repurchase Agreements (9.0%)
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $4,314,935 (Fully collateralized by U.S. Agency Securities and Treasury Notes)	$	4,314,306		4,314,306
Nomura Securities, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $6,029,006 (Fully collateralized by U.S. Agency Securities and AA Rated Corporate Bonds)		6,028,127		6,028,127
Total Repurchase Agreements				10,342,433
Short-Term Securities Held as Collateral for Securities Lending (11.4%)
Pool of short-term securities for Gartmore Mutual Funds - footnote 2 (Securities Lending)		13,138,730		13,138,730
Total Short-Term Securities Held as Collateral for Securities Lending				13,138,730
Total Investments (Cost $118,187,734) (a) — 110.4%				127,347,608
Other liabilities in excess of assets — (10.4%)				(12,039,438)
NET ASSETS — 100.0%			$	115,308,170

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.

See notes to financial statements.

122 Annual Report 2004

Concept Series

Gartmore U.S. Growth Leaders Long-Short Fund

(Formerly Gartmore Long-Short Equity Plus Fund)

For the annual period ended Oct. 31, 2004, the Gartmore U.S. Growth Leaders Long-Short Fund returned 9.03% (Class A at NAV) versus 9.42% for its benchmark, the S&P 500 Index. As of Nov. 1, 2004, the Fund will be compared to its new benchmark, the Citigroup 3-Month T-Bill Index, an unmanaged index that is an average of the last 3-month Treasury bill issues, excluding the current month-end bills. For the annual period ended Oct. 31, 2004, the Citigroup 3-Month T-Bill Index returned 1.09%. For broader comparison, the average return for the Fund’s Lipper peer category of Specialty Diversified Equity Funds was -1.98%.

The Fund’s name, managers and strategy changed as of July 1, 2004. The Fund now seeks to achieve absolute returns, regardless of market conditions, through the purchase and short sale of U.S. securities. This strategy is designed to produce relatively low volatility, more consistently positive returns than the overall market and a low correlation with the S&P 500 Index. The strategy is likely to underperform the S&P 500 Index when the market is rising, but should outperform during weak periods for the market. Because of the Fund’s anticipated low correlation with the overall market, we expect the Fund to appeal to investors who seek an additional tool for portfolio diversification through an asset allocation strategy.

Both long and short Fund positions are selected using bottom-up, fundamental analysis supplemented with quantitative filters. Some factors we look for in long positions include the likelihood of strong and accelerating earnings growth, solid market position, a strong balance sheet, capable management and reasonable valuation. For short Fund positions, the opposites of these qualities are sought: the likelihood of weak and decelerating earnings growth, vulnerable market position, a weak balance sheet, poor management and excessive valuation.

Sometimes Fund positions will be taken in pairs, with the Fund buying a more promising stock in an industry and selling short a weaker one. In such cases, the intent is for the Fund to profit on the “spread” or difference in the movement of the two stocks while minimizing the market and sector impact. At any particular time, the Fund may have a net long or a net short position, depending on market and other conditions. Near the end of the current period, the Fund had a small net long position—that is, slightly more of the Fund’s net assets were invested in long positions than in short ones.

Since July 1, 2004, Fund long positions that contributed to performance included McAfee, Inc. and Universal Health Services, Inc. On the short side, profitable Fund positions included Microstrategy Inc. and Coca-Cola Enterprises. Among the detractors to Fund performance were Checkpoint Technologies and Broadcom Corp., which held back performance on the long side, while short positions salesforce.com, inc. and Corning Inc. disappointed us.

While we are optimistic about the prospects for the U.S. economy and stock market in 2005, the hedged nature of the Fund makes the selection of individual positions more important than how the broader market performs. With that in mind, we will continue to apply our rigorous stock selection process for the Fund as diligently as possible in our effort to uncover the best long and short opportunities.

Portfolio Managers:
Christopher Baggini, CFA and Douglas Burtnick, CFA

Class A: MLSAX

Class B: MLSBX

Class C: MLSCX

Class R: GLSRX

Institutional Class: GGUIX

2004 Annual Report 123

Concept Series

Gartmore U.S. Growth Leaders Long-Short Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

		One		Five
		year		years		Inception1
Class A2	without sales charge3		9.03%		-1.02%		13.21%
	with sales charge4		2.78%		-2.19%		12.23%
Class B2	without sales charge3		8.22%		-1.37%		12.92%
	with sales charge5		4.27%		-1.54%		12.92%
Class C6	without sales charge3		8.20%		-1.83%		11.16%
	with sales charge7		7.47%		-1.83%		11.16%
Class R8,10			8.58%		-1.11%		13.14%
Institutional Class9,10			9.15%		-1.00%		13.23%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	The Fund’s predecessor Fund, the Montgomery Partners Long-Short Equity Plus Fund, commenced operations for its Class C shares and Class R shares on December 31, 1997, and commenced operations for its Class A shares and Class B shares on October 31, 2001. As of June 23, 2003, the Gartmore Long-Short Equity Plus Fund (which previously had not commenced operations) acquired all the assets, subject to stated liabilities, of the Montgomery Partners Long-Short Equity Plus Fund. At that time the Gartmore Long-Short Equity Plus Fund took on the performance of the Montgomery Partners Long-Short Equity Plus Fund.
2	These returns through October 31, 2001 include the performance of the Class R shares of the Fund’s predecessor fund, and, for periods from November 1, 2001 to June 22, 2003, the returns for the Class A and Class B shares include the performance of the Class A and Class B shares, respectively, of the Fund’s predecessor fund. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A and Class B shares would have produced because all classes of the Fund’s shares invest in the same portfolio of securities and Class A shares had the same expenses after waivers and reimbursements. The performance for these classes has been restated to reflect differences in sales charges (where applicable), but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to Class B shares; if these fees were reflected, the performance for Class B shares would have been lower.
3	These returns do not reflect the effects of sales charges (SC).
4	A 5.75% front-end sales charge was deducted.
5	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
6	These returns through June 22, 2003 include the performance of the Class C shares of the Fund’s predecessor fund.
7	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
8	These returns for the period through October 31, 2001 include the performance of the Class R shares of the Fund’s predecessor fund, for the period from November 1, 2001 through June 22, 2003 include the performance of the Class B shares of the Fund’s predecessor fund and for the period from June 23, 2003 to December 31, 2003 (prior to the creation of the Fund’s Class R shares) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Class R shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Class R shares. Excluding the effect of any fee waivers or reimbursements, Class B shares’ average annual total returns are similar to what Class R shares would have produced because the Class R shares will invest in the same portfolio of securities as Class B shares.
9	These returns for the period through October 31, 2001 include the performance of the Institutional Class shares of the Fund’s predecessor fund, for the period from November 1, 2001 through June 22, 2003 include the performance of the Class B shares of the Fund’s predecessor fund and for the period from June 23, 2003 to June 29, 2004 (prior to the creation of the Fund’s Institutional Class shares) include the performance of the Fund’s Class B shares. The returns have been adjusted for the fact that Institutional Class shares do not have any applicable sales charges but have not been adjusted for the lower expenses applicable to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, Class B shares’ average annual total returns are similar to what Institutional Class shares would have produced because the Institutional Class shares will invest in the same portfolio of securities as Class B shares.

¹⁰ Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore U.S. Growth Leaders Long-Short Fund, the S&P 500 Index (S&P 500)(a), the Citigroup U.S. Domestic 3-Month T Bill Index(b), and the Consumer Price Index (CPI)(c) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The S&P 500 is an unmanaged index of 500 widely held stocks of large U.S. companies that gives a broad look at how the stock prices of large U.S. companies have performed.
(b)	The Citigroup U.S. Domestic 3-Month T Bill Index is an average of the last 3-month treasury bill issues (excluding the current month-end bill).
(c)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

124 Annual Report 2004

Gartmore U.S. Growth Leaders Long-Short Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
U.S. Growth Leaders Long-Short Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	1,061	$	16.99			3.28%
	Hypothetical	1	$	1,000	$	1,009	$	16.70			3.28%
Class B	Actual		$	1,000	$	1,058	$	20.22			3.91%
	Hypothetical	1	$	1,000	$	1,005	$	19.90			3.91%
Class C	Actual		$	1,000	$	1,057	$	19.81			3.83%
	Hypothetical	1	$	1,000	$	1,006	$	19.50			3.83%
Class R	Actual		$	1,000	$	1,060	$	17.81			3.44%
	Hypothetical	1	$	1,000	$	1,008	$	17.51			3.44%
Institutional Class (a)	Actual		$	1,000	$	1,031	$	6.54	(b)		1.90%
	Hypothetical	1	$	1,000	$	1,007	$	6.49	(b)		1.90%

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Expense are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 124/366 (to reflect the period).

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 184/366 (to reflect the one-half year period).

¹    Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 125

Gartmore U.S. Growth Leaders Long-Short Fund

Concept Series

Portfolio Summary

(October 31, 2004) Long Positions

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	58.8%
Repurchase Agreement	41.6%
Other Liabilities in excess of Assets	-0.4%
	100.0%

Top Industries
Technology	13.2%
Media/ Services	9.1%
Consumer Cyclical	8.6%
Health Care	7.5%
Finance	6.4%
Capital Goods/ Defense	3.9%
Consumer Staple	2.8%
Basic Industry/ Gold	2.6%
Transportation	2.5%
Energy	1.2%
Other Industries	42.2%
	100.0%

Top Holdings
PepsiCo, Inc.	2.0%
Kohl’s Corp.	1.9%
Capital One Financial Corp.	1.6%
Franklin Resources, Inc.	1.6%
Gillette Co. (The)	1.5%
Lam Research Corp.	1.4%
Apple Computer, Inc.	1.3%
Norfolk Southern Corp.	1.3%
Juniper Networks, Inc.	1.3%
EMC Corp.	1.3%
Other Holdings	84.8%
	100.0%

126 Annual Report 2004

Gartmore U.S. Growth Leaders Long-Short Fund

Portfolio Summary

(October 31, 2004) Short Positions

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	44.3%

Top Industries
Consumer Cyclical	10.2%
Technology	6.3%
Finance	6.2%
Health Care	5.8%
Capital Goods/Defense	3.9%
Media/Services	2.9%
Transportation	2.5%
Energy	2.5%
Consumer Staple	2.3%
Capital Goods	0.9%
Other Industries	56.5%
	100.0%

Top Holdings
AmSouth Bancorp	1.6%
Brinker International, Inc.	1.5%
Electronic Arts, Inc.	1.5%
Transocean, Inc.	1.5%
Expeditors International of Washington, Inc.	1.5%
International Paper Co.	1.4%
CarMax, Inc.	1.4%
Coca-Cola Enterprises, Inc.	1.3%
Aon Corp.	1.3%
Medtronic, Inc.	1.2%
Other Holdings	85.8%
	100.0%

2004 Annual Report 127

Concept Series

Statement of Investments

October 31, 2004

Gartmore U.S. Growth Leaders Long-Short Fund

Common Stocks — Long Positions (c) (58.8%)
	Shares or
	Principal Amount		Value
Basic Industry/ Gold (2.6%)
Fisher Scientific International, Inc. (b)		2,990	$	171,506
Praxair, Inc.		6,450		272,190
United States Steel Corp.		7,550		277,236
				720,932
Capital Goods/ Defense (3.9%)
Danaher Corp.		5,170		285,022
PerkinElmer, Inc.		11,200		230,048
Textron, Inc.		4,100		279,415
Tyco International Ltd.		9,440		294,056
				1,088,541
Consumer Cyclical (8.6%)
Abercrombie & Fitch Co.		7,500		293,850
Best Buy Co.		3,710		219,706
Gillette Co. (The)		10,240		424,755
Kohl’s Corp. (b)		10,410		528,412
Lowe’s Cos., Inc.		6,040		339,931
Pacific Sunwear of California, Inc. (b)		10,300		241,432
Target Corp.		6,980		349,140
				2,397,226
Consumer Staple (2.8%)
PepsiCo, Inc.		11,240		557,279
Ralcorp Holding, Inc.		5,820		213,885
				771,164
Energy (1.2%)
Nabors Industries Ltd. (b)		6,950		341,384
Finance (6.4%)
Allstate Corp.		5,920		284,693
Capital One Financial Corp.		6,230		459,524
Franklin Resources, Inc.		7,330		444,344
Legg Mason, Inc.		2,550		162,461
North Fork Bancorporation, Inc.		5,560		245,196
T. Rowe Price Group, Inc.		3,750		209,138
				1,805,356
Health Care (7.5%)
Eyetech Pharmaceuticals, Inc. (b)		6,850		290,714
Forest Laboratories, Inc., Class A (b)		5,380		239,948
Genzyme Corp. (b)		5,850		306,949
Gilead Sciences, Inc. (b)		6,150		212,975
Guidant Corp.		3,400		226,508
St. Jude Medical, Inc. (b)		3,700		283,309
UnitedHealth Group, Inc.		3,990		288,876
Wyeth		6,150		243,848
				2,093,127
Media/ Services (9.1%)
Carnival Corp.		4,500		227,520
EMC Corp. (b)		27,980		360,103
Juniper Networks, Inc. (b)		13,650		363,226
Marriott International, Inc., Class A		5,130		279,534
Motorola, Inc.		8,900		153,614
Smith International, Inc. (b)		3,550		206,184
Starwood Hotels & Resorts Worldwide, Inc.		7,000		334,110
XM Satellite Radio Holdings, Class A (b)		9,300		300,576
Yahoo, Inc. (b)		9,000		325,710
				2,550,577
Technology (13.2%)
Ameritrade Holdings Corp. (b)		18,400		239,568
Apple Computer, Inc. (b)		7,100		372,962
Business Objectives S.A. ADR - FR (b)		13,530		345,286
Citadel Security Software, Inc. (b)		39,000		129,831
Citrix Systems, Inc. (b)		6,500		156,845
Hyperion Solutions Corp. (b)		3,700		148,481
Lam Research Corp. (b)		15,100		393,052
McAfee, Inc. (b)		12,500		302,500
Micros Systems, Inc. (b)		4,050		239,436
National Semiconductor Corp.		12,930		215,931
QLogic Corp. (b)		9,280		301,600
Quest Software, Inc. (b)		21,450		314,672
Take-Two Interactive Software (b)		8,150		268,624
Texas Instruments, Inc.		12,650		309,293
				3,738,081
Transportation (2.5%)
Forward Air Corp. (b)		8,150		335,536
Norfolk Southern Corp.		10,980		372,771
				708,307
Utility (1.0%)
Questar Corp.		5,800		278,400
Total Common Stocks — Long Positions (c)				16,493,095

128 Annual Report 2004

Repurchase Agreements (41.6%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $4,862,466 (Fully collateralized by U.S. Agency Securities & U.S. Treasury Notes)	$	4,861,757	$	4,861,757
Nomura Securities, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $6,794,038 (Fully collateralized by AA Rated Corporate Bonds & U.S. Agency Securities)		6,793,048		6,793,048
Total Repurchase Agreements				11,654,805
Total Investments (Cost $26,991,662) (a) — 100.4%				28,147,900
Liabilities in excess of other assets — (0.4)%				(110,802)
NET ASSETS — 100.0%			$	28,037,098

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.
(c)	All long positions held as collateral for securities sold short.

ADR      American Depositary Receipt

FR       France

See notes to financial statements.

2004 Annual Report 129

Concept Series

Statement of Investments

October 31, 2004

Gartmore U.S. Growth Leaders Long-Short Fund

Common Stocks — Short Positions (44.3%)
	Shares		Value
Basic Industry/Gold (0.8%)
Alcoa, Inc.		7,100	$	230,750
Capital Goods (0.9%)
Avaya, Inc. (b)		18,000		259,200
Capital Goods/Defense (3.9%)
Cooper Tire & Rubber Co.		13,950		271,746
Rockwell International Corp.		5,950		248,056
SPX Corp.		7,430		284,940
Tellabs, Inc. (b)		35,500		284,000
				1,088,742
Consumer Cyclical (10.2%)
99 Cents Only Stores (b)		19,440		299,570
Apollo Group, Inc. (b)		4,140		273,240
Avery-Dennison Corp.		5,140		312,717
Avon Products, Inc.		6,600		261,030
Bed Bath & Beyond, Inc. (b)		6,850		279,412
Harley-Davidson, Inc.		5,240		301,667
International Paper Co.		10,600		408,205
Saks, Inc.		21,400		261,508
Tiffany & Co.		8,550		250,772
Whole Foods Market, Inc.		3,020		245,919
				2,894,040
Consumer Staple (2.3%)
Campbell Soup Co.		9,970		267,595
Coca-Cola Enterprises, Inc.		18,260		381,816
				649,411
Energy (2.5%)
Marathon Oil Corp.		7,300		278,203
Transocean, Inc. (b)		11,760		414,540
				692,743
Finance (6.2%)
AmSouth Bancorp		16,500		435,435
Janus Capital Group, Inc.		22,030		335,958
M & T Bank Corp.		1,910		196,730
St. Paul Cos., Inc.		7,800		264,888
Willis Group Holdings Ltd.		5,860		210,667
XL Capital Ltd.		3,940		285,650
				1,729,328
Health Care (5.8%)
Aon Corp.		17,490		356,970
Caremark Rx, Inc. (b)		7,850		235,265
Conseco, Inc. (b)		11,400		191,064
HCA, Inc.		7,250		266,293
Medtronic, Inc.		6,650		339,881
Mylan Laboratories, Inc.		13,750		236,775
				1,626,248
Media/Services (2.9%)
Brinker International, Inc. (b)		13,050		421,515
CarMax, Inc. (b)		14,600		384,564
				806,079
Technology (6.3%)
Applied Materials, Inc. (b)		17,110		275,471
Brooks Automation, Inc. (b)		18,510		275,429
Electronic Arts, Inc. (b)		9,250		415,509
Micrel, Inc. (b)		16,250		182,488
Network Appliance, Inc. (b)		13,580		332,303
Solectron Corp. (b)		52,740		275,303
				1,756,503
Transportation (2.5%)
Burlington Northern Santa Fe Corp.		6,890		288,071
Expeditors International of Washington, Inc.		7,160		408,836
				696,907
Total Investments (Proceeds $11,923,722) (a) — 44.3%			$	12,429,951

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Denotes a non-income producing security.

See notes to financial statements.

130 Annual Report 2004

Concept Series

Gartmore Convertible Fund

From its inception on Jan. 20, 2004, through Oct. 31, 2004, the Gartmore Convertible Fund returned -1.68% (Class A at NAV), versus 1.49% for its benchmark, the Goldman Sachs Convertible 100 Index. The Fund’s Lipper peer category is yet to be determined.

The Fund’s performance reflected the growing pains of a relatively new fund and the challenge of putting the associated uneven inflows of cash to work in an efficient and timely manner.

The Fund normally invests approximately 80% of its net assets in convertible securities, with roughly 60% of its holdings in investment-grade (BBB-/ Baa3 or better) convertibles. Fund returns come from two sources: interest income and potential appreciation of the underlying securities. In general, we would characterize this Fund as more conservative and somewhat less equity-sensitive than many convertible funds currently available. Throughout complete market cycles, our aim is to capture approximately 80% of the stock market’s movement when share prices advance, while keeping returns relatively flat when stocks are declining. To achieve this goal, we strive to buy securities at or below par value, and we generally do not supplement our convertible holdings with common stock. We believe that our investors value high risk-adjusted returns above all else, which is what we strive to deliver. Put another way, our primary goal is capital preservation, and we look for ways to generate income and capital gains that are consistent with that goal.

The Fund’s largest overweighting was in the energy sector, which aided Fund performance. Energy stocks were helped by rising prices for crude oil, which went beyond the $50-per-barrel threshold in October. Given the substantial free cash flows being generated by exploration and production companies and this business cycle’s still-modest spending on new projects, the Fund’s positions in services and drilling companies contributed to the Fund’s performance. Some of the better performers in this area included Schlumberger Ltd., Cooper Cameron Corp., BJ Services Co., Nabors Industries Ltd. and Grey Wolf, Inc.

Conversely, underweights by the Fund in the information technology and telecommunications sectors were somewhat detrimental to Fund performance. Many convertible securities offered by firms in these sectors, however, do not have sufficiently strong credit quality to meet our investing standards, so we looked elsewhere for suitable opportunities for the Fund. Over the long term, we believe that our high investing standards will benefit the Fund and its investors. In addition, information technology and telecommunications stocks appeared overvalued to us, which was another reason to be extremely selective in those sectors.

We are comfortable with the Fund’s positioning. Even if per-barrel crude oil prices drop back to the $30 to $40 range, energy services and drilling companies still could do extremely well. Moreover, with the economy in recovery, we believe that the broader trend of the stock market should be up, which would be favorable for convertible securities. We plan, however, to remain conservatively positioned and value-oriented, mindful of our primary objective of capital preservation.

Portfolio Managers:
Jeremiah O’Grady and Charles Wright

Class A: GRVAX

Class B: GRVBX

Class C: GRVCX

Institutional Service Class: GRVSX

Institutional Class: GRVIX

2004 Annual Report 131

Concept Series

Gartmore Convertible Fund

Fund Performance

Aggregate Total Return

(For periods ended October 31, 2004)

		Inception1
Class A2	without sales charge3		-0.80%
	with sales charge4		-6.50%
Class B2	without sales charge3		-1.58%
	with sales charge5		-6.45%
Class C2	without sales charge3		-1.53%
	with sales charge6		-2.51%
Class R 7,8			-0.97%
Institutional Service Class2,8			-0.68%
Institutional Class8			-0.68%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on December 29, 2003.
2	These returns until the creation of Class A, B, C and Institutional Service shares (1/20/04) include the performance of the Fund’s Institutional Class shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class A, B, C and Institutional Service shares would have produced because Class A, B, C and Institutional Service shares invest in the same portfolio of securities as Institutional Class shares.
3	These returns do not reflect the effects of sales charges (SC).
4	A 5.75% front-end sales charge was deducted.
5	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
6	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
7	These returns until the creation of Class R shares (5/14/04) include the performance of the Fund’s Class B shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is substantially similar to what Class R shares would have produced because Class R shares invest in the same portfolio of securities as Class B shares.
8	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Institutional Class shares of the Gartmore Convertible Fund, Goldman Sachs Convertible 100 Index(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	Goldman Sachs Convertible 100 Index is an unmanaged index with a target of 100 securities, including convertible bonds, preferreds, and mandatory convertible securities.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

132 Annual Report 2004

Gartmore Convertible Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Convertible Fund			5/1/04		10/31/04		During Period*			Expense Ratio
Class A	Actual		$	1,000	$	999	$	6.03			1.20%
	Hypothetical	1	$	1,000	$	1,019	$	6.11			1.20%
Class B	Actual		$	1,000	$	994	$	9.78			1.95%
	Hypothetical	1	$	1,000	$	1,015	$	9.93			1.95%
Class C	Actual		$	1,000	$	996	$	9.78			1.95%
	Hypothetical	1	$	1,000	$	1,015	$	9.93			1.95%
Class R(a)	Actual		$	1,000	$	998	$	7.33	(b)		1.46%
	Hypothetical	1	$	1,000	$	1,018	$	7.43	(b)		1.46%
Institutional Service Class	Actual		$	1,000	$	1,001	$	4.78			0.95%
	Hypothetical	1	$	1,000	$	1,020	$	4.84			0.95%
Institutional Class	Actual		$	1,000	$	1,001	$	4.78			0.95%
	Hypothetical	1	$	1,000	$	1,020	$	4.84			0.95%

* Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 182/366 (to reflect the one-half year period).

¹ Represents the hypothetical 5% annual return before expenses.

(a)	For the period from May 14, 2004 (commencement of operations) through October 31, 2004.
(b)	Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 170/366 (to reflect the period).

2004 Annual Report 133

Gartmore Convertible Fund

Concept Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Convertible Bonds	64.9%
Convertible Preferred Stock	27.6%
Corporate Bonds	2.3%
Repurchase Agreement	6.6%
Other Liabilities in excess of Assets	-1.4%
	100.0%

Top Industries
Oil & Gas	12.3%
Insurance	9.2%
Banks	6.6%
Retail	5.7%
Auto Parts & Equipment	5.5%
Paper & Related Products	4.8%
Pharmaceuticals	4.1%
Manufacturing	3.3%
Aerospace & Defense	2.7%
Hotels & Motels	2.4%
Other Industries	43.4%
	100.0%

Top Holdings
Sealed Air Corp.	2.9%
Cooper Cameron Corp.	2.8%
Sovereign Cap Trust IV	2.6%
Schlumberger Ltd.	2.5%
Titan International, Inc.	2.5%
Teva Pharmaceutical	2.5%
Hilton Hotels Corp.	2.4%
Centerpointe Energy, Inc.	2.3%
Simon Property Group LP	2.3%
General Motors Corp.	2.3%
Other Holdings	74.9%
	100.0%

134 Annual Report 2004

Gartmore Convertible Fund

Statement of Investments

October 31, 2004

Gartmore Convertible Fund

Convertible Bonds (64.9%)
	Shares or
	Principal Amount		Value
Aerospace/ Defense (1.0%)
Armor Holdings, Inc., 2.00%, 11/01/24	$	350,000	$	345,188
Apparel Manufacturing (1.8%)
Kellwood Co., 3.50%, 06/15/34 (b)		650,000		623,188
Auto Parts & Equipment (5.5%)
Amer Axle & Manufacturing, Inc., 2.00%, 02/15/24		600,000		529,500
Amer Axle & Manufacturing, Inc., 2.00%, 02/15/24 (b)		300,000		264,750
Titan International, Inc., 5.25%, 07/26/09 (b)		850,000		879,750
Tower Automotive, Inc., 5.75%, 07/26/09 (b)		500,000		241,875
				1,915,875
Banks (2.3%)
Bankunited Capital Trust, 3.13%, 03/01/34 (b)		400,000		408,500
Bankunited Capital Trust, 3.13%, 03/01/34		400,000		408,500
				817,000
Batteries/ Battery Systems (1.8%)
Wilson Greatbatch Tech, 2.25%, 06/15/13		775,000		639,375
Broadcasting (1.9%)
Liberty Media Corp., 3.25%, 03/15/31		710,000		661,188
Computer Services (1.7%)
Electronic Data Systems, 3.88%, 07/15/23		580,000		590,150
Computer Software (1.5%)
Bell Microproducts, Inc., 3.75%, 03/05/24		500,000		520,000
Credit Card Services (1.5%)
American Express Credit Corp., 1.85%, 12/01/33		500,000		531,875
Electronic Components/ Semiconductors (1.5%)
Advanced Micro Devices, 4.75%, 02/01/22		500,000		512,500
Engineering (1.8%)
Fluor Corp., 1.50%, 02/15/24		600,000		627,000
Financial Services (1.1%)
Goldman Sachs Group, Inc., 1.50%, 07/23/09		400,000		394,764
Grocery Stores (0.9%)
Wild Oats Markets, Inc., 3.25%, 05/15/34 (b)		380,000		304,475
Hotels & Motels (2.4%)
Hilton Hotels Corp., 3.38%, 04/15/23	$	750,000		843,750
Insurance (2.2%)
Leucadia National Corp., 3.75%, 04/15/14 (b)		700,000		778,750
Machinery (1.9%)
Regal Beloit Corp., 2.75%, 03/15/24 (b)		600,000		663,750
Manufacturing (3.3%)
3M Company, 0.18%, 11/21/32		600,000		532,500
Quanex Corp., 2.50%, 05/15/34 (b)		570,000		632,700
				1,165,200
Multimedia (2.1%)
Walt Disney Co., 2.13%, 04/15/23		700,000		749,000
Oil & Gas (11.0%)
Cooper Cameron Corp., 1.50%, 05/15/24		980,000		998,374
Grey Wolf, Inc., 3.75%, 05/07/23		300,000		306,000
Nabors Industries, Inc., 1.03%, 06/15/23		700,000		674,625
Pride International, Inc., 3.25%, 05/01/33 (b)		450,000		475,875
Pride International, Inc., 3.25%, 05/01/33		500,000		528,750
Schlumberger Ltd., 2.13%, 06/01/23		840,000		889,350
				3,872,974
Paper & Related Products (2.9%)
Sealed Air Corp., 3.00%, 06/30/33 (b)		1,000,000		1,017,500
Pharmaceuticals (4.1%)
Teva Pharmaceutical, 0.94%, 02/01/24		900,000		868,500
Watson Pharmaceuticals, 1.75%, 03/15/23		600,000		583,500
				1,452,000
Retail (5.7%)
Mens Wearhouse, 3.13%, 10/15/23		700,000		709,624
Reebok International Ltd., 2.00%, 05/01/24 (b)		600,000		611,250
Saks, Inc., 2.00%, 03/15/24		760,000		668,800
				1,989,674
Telecommunication Equipment (2.4%)
ADC Telecommunications, 2.24%, 06/15/13 (c)		465,000		441,169
Primus Telecom Group, 5.75%, 02/15/07		535,000		414,625
				855,794
Transportation Leasing & Trucking (1.6%)
United Rentals NA, Inc., 1.88%, 10/15/23		600,000		545,250

2004 Annual Report 135

Statement of Investments (Continued)

October 31, 2004

Gartmore Convertible Fund (Continued)

Concept Series

Convertible Bonds (continued)
	Shares or
	Principal Amount		Value
Wireless Equipment (1.0%)
American Tower Corp., 3.00%, 08/15/12 (b)	$	330,000	$	351,038
Total Convertible Bonds				22,767,258
Corporate Bonds (2.3%)
Auto Manufacturing (2.3%)
General Motors Corp., 6.25%, 07/15/33		30,000		806,400
Total Corporate Bonds				806,400
Convertible Preferred Stocks (27.6%)
Aerospace & Defense (2.7%)
Northrop Grumman Corp, 7.00%		3,300		426,113
Northrop Grumman Corp, 7.25%		5,000		510,625
				936,738
Banks (4.3%)
Sovereign Cap Trust IV, 4.38%		18,900		895,388
Washington Mutual, Inc, 5.38%		11,000		588,500
				1,483,888
Energy (2.3%)
Centerpointe Energy, Inc, 2.00%		24,400		822,182
Healthcare Services (2.0%)
McKesson Financing Trust, 5.00%		14,500		714,125
Insurance (7.0%)
Genworth Financial, Inc, 6.00%		11,000		322,080
Platinum Underwriters, 7.00%		25,000		724,999
PMI Group, Inc., 5.88%		28,400		710,000
Reinsurance Group of America, Inc., 5.75%		11,700		677,138
				2,434,217
Metals (1.3%)
Freeport Corp., 5.50% (b)		480		453,600
Oil & Gas (1.3%)
Chesapeake Energy Corp., 5.00%		4,000		466,000
Paper Products (1.9%)
International Paper Co., 5.25%	$	13,000		654,875
Real Estate Investment Trusts (2.3%)
Simon Property Group LP, 6.00%		15,000		815,550
Rental Auto/ Equipment (1.2%)
United Rentals Trust I, 6.50%		10,900		419,650
Telecommunications (1.3%)
Centurytel, Inc, 6.88%		18,600		467,790
Total Convertible Preferred Stocks				9,668,615
Repurchase Agreements (6.6%)
CS First Boston, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $967,565 (Fully collateralized by AA Rated Treasury Notes and U.S. Agency Securities)		967,515		967,515
Nomura Securities, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $1,351,926 (Fully collateralized by U.S. Agency Securities and AA Rated Corporate Bonds)		1,351,853		1,351,853
Total Repurchase Agreements				2,319,368
Total Investments (Cost $35,737,875) (a) — 101.4%				35,561,641
Liabilities in excess of other assets — (1.4)%				(498,893)
NET ASSETS — 100.0%			$	35,062,748

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Rule 144A, Section 4(2), or other security, which is restricted as to resale to institutional investors. The security has been deemed liquid pursuant to procedures approved by the Board of Trustees.
(c)	Variable rate security. The rate reflected in the Statement of Investments is the rate reflected in effect on October 31, 2004.

See notes to financial statements.

136 Annual Report 2004

Concept Series

Gartmore Small Cap Growth Fund

From its inception on March 30, 2004, through Oct. 31, 2004, the Gartmore Small Cap Growth Fund returned –8.30% (Class A at NAV), versus –3.39% for the Fund’s benchmark, the Russell 2000® Growth Index. For broader comparison, the average return for the Fund’s Lipper peer category of Small-Cap Growth Funds was 0.21%.

During the reporting period, we were able to add value in the health-care and energy sectors. One of the Fund’s positive performing stocks was in health care sector- a biotechnology holding Pharmion Corp., whose stock surged higher on the news that the company’s drug for bone marrow disorders, Vidaza, was approved by the Food and Drug Administration. Cooper Companies, Inc. also aided performance, reporting strong earnings for its fiscal third quarter ended July 31, 2004; the company cited robust sales in its contact lens division as a driving force. An overweighting by the Fund in energy helped Fund performance, as rising crude oil and natural gas prices enabled many energy companies to generate healthy cash flows. Among the Fund’s contributors was Chesapeake Energy Corp., an oil and gas exploration and production company with major properties located primarily in the southern and midcontinental United States. Also boosting Fund performance was Tesoro Petroleum Corp., which benefited from favorable refining margins, as well as OMI Corp. and Teekay Shipping Corp. are two crude oil shipping companies that also performed well during the period.

Stock selection in the information technology sector was the main detractor from performance. With the economy in recovery mode and employment finally beginning to see meaningful growth in the spring, we believed that capital spending for semiconductors and software would soon accelerate. Capital spending, however, for both groups remained muted, allowing semiconductor inventories to build and driving chip prices lower. Amkor Technology, Inc., a maker of semiconductor capital equipment, was one stock in the group that hurt Fund performance. Another Fund holding, Maxtor Corp., a manufacturer of data storage equipment, encountered similar turbulence due to weak pricing and slack demand. Citadel Security Software, Inc., which markets software to the U.S. government’s Department of Defense, fell due to lower-than-expected orders for its products. Also, detracting from the Fund’s performance was stock selection in the financial sector; specifically Commercial Capital Bancorp, Inc. and Freemont General Corp.

Looking ahead, we think that the U.S. economy could grow at a modest but still healthy rate in 2005, which should benefit the market overall and technology in particular. Accordingly, in October we increased the Fund’s technology exposure to an overweighted position from a significant underweighting. Also contributing to our optimism—at least for the short term—is the fact that we are entering a seasonally favorable time of year for stocks overall and for small caps in particular. Conversely, we have trimmed the Fund’s energy exposure, because we think that many stocks in the sector have become richly valued, and crude oil prices could have some further downside risk. Finally, we have moderated the Fund’s underweighting in the consumer discretionary sector, adding a few names that we think could benefit from the holiday shopping season, such as Circuit City Stores, Inc.; Claire’s Stores, Inc.; and Pacific Sunwear of California, Inc.

Portfolio Manager: Gil Knight

Class A: GTGAX

Class B: GTGBX

Class C: GTGCX

Class R: GTGRX

Institutional Service Class: GSSVX

Institutional Class: GTGIX

2004 Annual Report 137

Concept Series

Gartmore Small Cap Growth Fund

Fund Performance

Aggregate Total Return

(For periods ended October 31, 2004)

		Inception1
Class A	without sales charge2		-8.30%
	with sales charge3		-13.57%
Class B	without sales charge2		-8.60%
	with sales charge4		-13.17%
Class C	without sales charge2		-8.60%
	with sales charge5		-9.51%
Class R6			-8.40%
Institutional Service Class6			-8.10%
Institutional Class6			-8.10%

All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data.

1	Fund commenced operations on March 30, 2004.
2	These returns do not reflect the effects of sales charges (SC).
3	A 5.75% front-end sales charge was deducted.
4	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.
5	A CDSC of 1.00% was deducted because it is charged when you sell Class C shares within the first year after purchase.
6	Not subject to any sales charges.

Performance of a $10,000 Investment

Investment return and principal value will fluctuate, and when redeemed, shares may be worth more or less than original cost. Past performance is no guarantee of future results and does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Investing in mutual funds involves market risk, including loss of principal. Performance returns assume the reinvestment of all distributions.

Comparative performance of $10,000 invested in Class A shares of the Gartmore Small Cap Growth Fund, Russell 2000 Growth Index(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, the returns for these unmanaged indexes do not reflect any fees, expenses, or sales charges. Investors cannot invest directly in market indexes.

(a)	The Russell 2000 Growth Index is an unmanaged index of securities of small capitalization companies.
(b)	The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

138 Annual Report 2004

Gartmore Small Cap Growth Fund

Shareholder

Expense Example

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period, May 1, 2004, and continued to hold your shares at the end of the reporting period, October 31, 2004. Per SEC requirements, the examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended October 31, 2004.

Actual Expenses

For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes

The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)

			Beginning		Ending
			Account Value		Account Value		Expenses Paid		Annualized
Small Cap Growth Fund			5/1/04		10/31/04		During Period*		Expense Ratio
Class A	Actual		$	1,000	$	997	$	8.48		1.69%
	Hypothetical	1	$	1,000	$	1,017	$	8.60		1.69%
Class B	Actual		$	1,000	$	995	$	11.83		2.36%
	Hypothetical	1	$	1,000	$	1,013	$	12.01		2.36%
Class C	Actual		$	1,000	$	995	$	11.73		2.34%
	Hypothetical	1	$	1,000	$	1,013	$	11.91		2.34%
Class R	Actual		$	1,000	$	996	$	8.88		1.77%
	Hypothetical	1	$	1,000	$	1,016	$	9.01		1.77%
Institutional Service Class	Actual		$	1,000	$	999	$	6.28		1.25%
	Hypothetical	1	$	1,000	$	1,019	$	6.36		1.25%
Institutional Class	Actual		$	1,000	$	999	$	6.88		1.37%
	Hypothetical	1	$	1,000	$	1,018	$	6.97		1.37%

*  Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period multiplied by 182/366 (to reflect the one-half year period).

¹ Represents the hypothetical 5% annual return before expenses.

2004 Annual Report 139

Gartmore Small Cap Growth Fund

Concept Series

Portfolio Summary

(October 31, 2004)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semiannual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Asset Allocation
Common Stocks	81.1%
Repurchase Agreement	17.5%
Other Assets in excess of Liabilities	1.4%
	100.0%

Top Industries
Semiconductors	11.6%
Business Software & Services	7.1%
Wireless Equipment	5.4%
Pharmaceuticals	5.2%
Internet Services	4.8%
Medical Equipment & Supplies	4.1%
Retail	4.0%
Veterinary Diagnostics	3.1%
Manufacturing	2.9%
Transportation	2.9%
Other Industries	48.9%
	100.0%

Top Holdings
Genitope Corp.	2.6%
Charles River Associates, Inc.	2.4%
VCA Antech, Inc.	1.9%
Joy Global, Inc.	1.8%
Nobility Homes Inc.	1.7%
Gen-Probe, Inc.	1.7%
Lions Gate Entertainment Corp.	1.7%
Syneron Medical Ltd.	1.7%
Circuit City Stores, Inc.	1.7%
First Horizon Pharmaceutical Corp.	1.7%
Other Holdings	81.1%
	100.0%

140 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Small Cap Growth Fund

Common Stocks (81.1%)
	Shares or
	Principal Amount		Value
Aerospace/ Defense (0.8%)
Curtiss-Wright Corp.		400	$	22,324
Banking (1.4%)
Colonial BancGroup, Inc.		1,800		38,970
Biological Products (2.6%)
Genitope Corp. (b)		6,100		72,346
Building Products (1.5%)
Florida Rock Industries, Inc.		800		41,320
Business Software & Services (7.1%)
Business Objectives SA-ADR - FR (b)		1,400		35,728
Extreme Networks, Inc. (b)		6,200		36,270
Marlin Business Services, Inc. (b)		1,500		26,438
Satyam Computer Services Ltd.-ADR - IN		1,400		36,778
Transaction Systems Architects, Inc., Class A (b)		2,400		39,347
Ultimate Software Group, Inc. (b)		2,100		27,017
				201,578
Commercial Services (1.5%)
Jackson Hewitt Tax Service, Inc.		2,000		42,000
Computer Software & Services (2.8%)
Compuware Corp. (b)		6,700		38,793
Novell, Inc. (b)		5,600		40,264
				79,057
Electronics (1.5%)
Integrated Silicon Solution, Inc. (b)		5,600		42,056
Entertainment (1.7%)
Lions Gate Entertainment Corp. (b)		5,000		49,050
Identification Systems/ Devices (1.5%)
Cogent, Inc. (b)		2,200		42,095
Industrial Supplies (1.3%)
MSC Industrial Direct Co., Class A		1,100		37,554
Internet Services (4.8%)
Covansys Corp. (b)		3,400		39,168
FindWhat.com (b)		1,600		32,080
Jupiter Media Corp. (b)		1,700		33,720
Shanda Interactive Entertainment Ltd.-ADR - KY (b)		1,000		30,389
				135,357
Management Services (2.4%)
Charles River Associates, Inc. (b)		1,700		68,306
Manufactured Homes (1.7%)
Nobility Homes, Inc.		2,500		49,300
Manufacturing (2.9%)
Engineered Support Systems, Inc.		700		33,628
Gen-Probe, Inc. (b)		1,400		49,056
				82,684
Medical Equipment & Supplies (4.1%)
Intralase Corp. (b)		1,400		26,922
Intuitive Surgical, Inc. (b)		1,400		40,852
Syneron Medical Ltd. (b)		2,500		48,125
				115,899
Mining Equipment (1.8%)
Joy Global, Inc.		1,500		50,685
Oil & Gas (2.3%)
National-Oilwell, Inc. (b)		1,200		40,452
Ultra Petroleum Corp. (b)		500		24,300
				64,752
Pharmaceuticals (5.2%)
First Horizon Pharmaceutical Corp. (b)		1,900		46,702
Medarex, Inc. (b)		4,400		33,484
Myogen, Inc. (b)		3,500		30,345
QLT, Inc. (b)		2,200		36,630
				147,161
Physical Therapy & Rehabilitation Centers (1.0%)
U.S. Physical Therapy, Inc. (b)		1,800		27,180
Real Estate Investment Trusts (0.9%)
Host Marriott Corp. (b)		1,800		26,190
Retail (4.0%)
Circuit City Stores, Inc.		2,900		47,125
Hot Topic, Inc. (b)		1,200		24,672
Pacific Sunwear of California, Inc. (b)		1,700		39,848
				111,645
Semiconductors (11.6%)
Axcelis Technologies, Inc. (b)		2,900		24,940
Broadcom Corp., Class A (b)		1,300		35,165
Fairchild Semiconductor International, Inc. (b)		2,800		40,235
Integrated Circuit Systems, Inc. (b)		1,600		36,080
Intersil Corp., Class A		2,200		35,904
Marvel Technology Group Ltd. (b)		1,400		39,998
Mykrolis Corp. (b)		3,400		35,734
Silicon Image, Inc. (b)		2,700		36,990
Stmicroelectronics NV-ADR - NL		2,100		38,871
				323,917

2004 Annual Report 141

Statement of Investments (Continued)

October 31, 2004

Gartmore Small Cap Growth Fund (Continued)

Concept Series

Common Stocks (continued)
	Shares or
	Principal Amount		Value
Steel (1.3%)
Steel Dynamics, Inc.		1,100	$	36,520
Technology (0.8%)
Plexus Corp. (b)		1,900		23,541
Transportation (2.9%)
Overnite Corp.		1,100		35,596
Top Tankers, Inc (b)		2,700		46,170
				81,766
Utilities (1.2%)
Sierra Pacific Resources (b)		3,500		33,600
Veterinary Diagnostics (3.1%)
IDEXX Laboratories, Inc. (b)		700		34,888
VCA Antech, Inc. (b)		2,400		53,808
				88,696
Wireless Equipment (5.4%)
Alvarion Ltd. (b)		2,600		34,840
American Tower Corp., Class A (b)		2,100		36,099
RF Micro Devices, Inc. (b)		5,900		38,409
Tessco Technologies, Inc. (b)		3,400		43,690
				153,038
Total Common Stocks				2,288,587
Repurchase Agreements (17.5%)

Repurchase Agreements (17.5%)
	Shares or
	Principal Amount		Value
CS First Boston, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $205,493 (Fully collateralized by Treasury Notes and U.S. Agency Securities)	$	205,482	$	205,482
Nomura Securities, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $287,123 (Fully collateralized by U.S. Agency Securities and AA Rated Corporate Bonds)		287,108		287,108
Total Repurchase Agreements				492,590
Total Investments (Cost $2,724,467) (a) — 98.6%				2,781,177
Other assets in excess of liabilities — 1.4%				39,697
NET ASSETS — 100.0%			$	2,820,874

(a)	See notes to financial statements for tax unrealized appreciation (depreciation) of securities.
(b)	Non-income producing securities.

ADR      American Depositary Receipt

FR       France

KY       Cayman Islands

IN       India

NL       Netherlands

See notes to financial statements.

142 Annual Report 2004

Statements of Assets and Liabilities

October 31, 2004

			Gartmore High			Gartmore Value			Gartmore Micro
			Yield Bond Fund			Opportunities Fund			Cap Equity Fund
Assets:
Investments, at value (cost $21,044,859; $34,339,376 and $107,845,301; respectively)			$	22,224,234		$	37,287,198		$	117,005,175
Repurchase agreements, at cost				2,265,624			202,657			10,342,433
		Total Investments		24,489,858			37,489,855			127,347,608
Cash				—			175,018			33,584
Interest and dividends receivable				514,488			14,746			32,242
Receivable for capital shares issued				—			—			590,801
Receivable for investments sold				189,913			771,158			3,466,885
Receivable from adviser				8,513			8,649			14,021
Prepaid expenses and other assets				8,719			13,261			18,022
		Total Assets		25,211,491			38,472,687			131,503,163
Liabilities:
Distributions payable				141,942			—			—
Payable for investments purchased				596,937			504,320			2,858,061
Payable for capital shares redeemed				—			—			9,112
Payable for return of collateral received for securities on loan				—			5,895,220			13,138,730
Accrued expenses and other payables
	Investment advisory fees			11,137			19,240			115,702
	Fund administration and transfer agent fees			7,908			5,721			21,484
	Distribution fees			3,091			5,423			44,704
	Administrative servicing fees			452			8,719			2
	Other			12,034			7,523			7,198
		Total Liabilities		773,501			6,446,166			16,194,993
Net Assets			$	24,437,990		$	32,026,521		$	115,308,170
Represented by:
Capital			$	55,534,533		$	23,932,801		$	103,247,497
Accumulated net investment income (loss)				1			—			—
Accumulated net realized gains (losses) from investment, futures, and short sales				(32,275,919	)		5,145,898			2,900,798
Net unrealized appreciation (depreciation) on investments and futures				1,179,375			2,947,822			9,159,875
Net Assets			$	24,437,990		$	32,026,521		$	115,308,170
Net Assets:
Class A Shares			$	4,027,232		$	12,243,936		$	74,982,778
Class B Shares				734,074			2,630,919			6,403,117
Class C Shares				1,836,030			652,284			30,377,105
Class R Shares				1,051			1,025			1,109
Institutional Service Class Shares				17,838,548			16,497,359			50,727
Institutional Class Shares				1,055			998			3,493,334
Total			$	24,437,990		$	32,026,521		$	115,308,170
Shares outstanding (unlimited number of shares authorized)
Class A Shares				568,552			764,941			3,832,869
Class B Shares				103,776			166,721			333,219
Class C Shares				259,398			41,424			1,579,210
Class R Shares				149			65			58
Institutional Service Class Shares				2,497,649			1,022,550			2,579
Institutional Class Shares				148			62			177,608
Total				3,429,672			1,995,763			5,925,543
Net asset value:
Class A Shares			$	7.08		$	16.01		$	19.56
Class B Shares (a)			$	7.07		$	15.78		$	19.22
Class C Shares (b)			$	7.08		$	15.75		$	19.24
Class R Shares			$	7.07		$	15.83		$	19.27
Institutional Service Class Shares			$	7.14		$	16.13		$	19.67
Institutional Class Shares			$	7.14		$	16.14		$	19.67
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent
Class A Shares			$	7.43		$	16.99		$	20.75
Maximum Sales Charge — Class A Shares				4.75	%		5.75	%		5.75	%

(a)	For Class B shares, the redemption price per share varies by the length of time shares are held.
(b)	For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year.

See notes to financial statements.

2004 Annual Report 143

Concept Series

Statements of Assets and Liabilities

October 31, 2004

			Gartmore U.S.			Gartmore			Gartmore
			Growth Leaders			Convertible			Small Cap
			Long-Short Fund			Fund			Growth Fund
Assets:
Investments, at value (cost $15,336,857; $33,418,507 and $2,231,877; respectively)			$	16,493,095		$	33,242,273		$	2,288,587
Repurchase agreements, at cost				11,654,805			2,319,368			492,590
		Total Investments		28,147,900			35,561,641			2,781,177
Cash				11,050,601			—			1,500
Interest and dividends receivable				31,765			192,277			680
Receivable for capital shares issued				368,575			6,995			—
Receivable for investments sold				5,242,598			116,054			450,540
Receivable from adviser				9,796			3,652			7,264
Prepaid expenses and other assets				13,226			6,219			6,851
		Total Assets		44,864,461			35,886,838			3,248,012
Liabilities:
Securities sold short, at value (proceeds $11,923,722; $0 and $0; respectively)				12,429,951			—			—
Payable to custodian				—			380,767			—
Payable for investments purchased				4,336,613			409,653			422,206
Payable for capital shares redeemed				1,505			3,911			—
Accrued expenses and other payables Investment advisory fees				34,456			18,864			2,255
	Fund administration and transfer agent fees			9,079			4,311			1,759
	Distribution fees			7,538			3,515			41
	Administrative servicing fees			2,545			1			1
	Other			5,676			3,068			876
		Total Liabilities		16,827,363			824,090			427,138
Net Assets			$	28,037,098		$	35,062,748		$	2,820,874
Represented by:
Capital			$	47,861,474		$	35,569,201		$	3,052,304
Accumulated net investment income (loss)				914,137			79,417			—
Accumulated net realized gains (losses) from investment, futures, short sales and swaps				(21,366,849	)		(409,636	)		(288,140	)
Net unrealized appreciation (depreciation) on investments, futures and short sales				628,336			(176,234	)		56,710
Net Assets			$	28,037,098		$	35,062,748		$	2,820,874
Net Assets:
Class A Shares			$	24,411,098		$	2,987,674		$	14,055
Class B Shares				653,363			210,233			12,648
Class C Shares				2,640,764			3,253,444			40,104
Class R Shares				1,022			1,017			916
Institutional Service Class Shares				—			311,455			919
Institutional Class Shares				330,851			28,298,925			2,752,232
Total			$	28,037,098		$	35,062,748		$	2,820,874
Shares outstanding (unlimited number of shares authorized)
Class A Shares				2,553,958			305,413			1,532
Class B Shares				69,660			21,597			1,384
Class C Shares				366,269			334,047			4,391
Class R Shares				109			105			100
Institutional Service Class Shares				—			31,856			100
Institutional Class Shares				34,581			2,894,552			299,500
Total				3,024,577			3,587,570			307,007
Net asset value:
Class A Shares			$	9.56		$	9.78		$	9.17
Class B Shares (a)			$	9.38		$	9.73		$	9.14
Class C Shares (b)			$	7.21		$	9.74		$	9.13
Class R Shares			$	9.41		$	9.74		$	9.16
Institutional Service Class Shares			$	—		$	9.78		$	9.19
Institutional Class Shares			$	9.57		$	9.78		$	9.19
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent
Class A Shares			$	10.14		$	10.38		$	9.73
Maximum Sales Charge — Class A Shares				5.75	%		5.75	%		5.75	%

(a)	For Class B shares, the redemption price per share varies by the length of time shares are held.
(b)	For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year.

See notes to financial statements.

144 Annual Report 2004

Statements of Operations

For the Year Ended October 31, 2004

		Gartmore High			Gartmore Value			Gartmore Micro Cap
		Yield Bond Fund			Opportunities Fund			Equity Fund
INVESTMENT INCOME:
Interest income		$	6,828,377		$	18,763		$	67,555
Dividend income			25,649			507,756			236,532
Income from securities lending			25,219			20,231			39,417
	Total Income		6,879,245			546,750			343,504
Expenses:
Investment advisory fees			455,436			281,272			958,951
Fund administration and transfer agent fees			119,579			61,708			141,792
Distribution fees Class A			10,866			33,808			130,255
Distribution fees Class B			7,331			27,188			40,944
Distribution fees Class C			27,687			5,279			178,786
Distribution fees Class R			2			3			3
Administrative servicing fees Class A			3,155			13,743			4,582
Administrative servicing fees Class R			2			2			2
Administrative servicing fees Institutional Service Class			5,378			44,192			—
Registration and filing fees			40,999			47,930			62,248
Other			27,077			24,785			39,010
	Total expenses before reimbursed expenses		697,512			539,910			1,556,573
Expenses reimbursed			(63,445	)		(11,918	)		(14,021	)
	Total Expenses		634,067			527,992			1,542,552
Net Investment Income (Loss)			6,245,178			18,758			(1,199,048	)
REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) on investment transactions			5,076,078			5,404,162			4,115,524
Net realized gains (losses) on investment transactions			5,076,078			5,404,162			4,115,524
Net change in unrealized appreciation/depreciation on investments			(5,990,113	)		(1,765,389	)		5,816,745
Net realized/unrealized gains (losses) on investments			(914,035	)		3,638,773			9,932,269
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		$	5,331,143		$	3,657,531		$	8,733,221

See notes to financial statements.

2004 Annual Report 145

Concept Series

Statements of Operations

For the Year Ended October 31, 2004

		Gartmore U.S.			Gartmore			Gartmore
		Growth Leaders			Convertible			Small Cap
		Long-Short Fund			Fund (a)			Growth Fund (b)
INVESTMENT INCOME:
Interest income		$	214,020		$	321,730		$	1,731
Dividend income (net of foreign withholding tax of $509; $0 and $0; respectively)			223,279			315,782			8,311
	Total Income		437,299			637,512			10,042
Expenses:
Investment advisory fees			404,155			119,087			15,425
Fund administration and transfer agent fees			67,760			25,132			4,162
Distribution fees Class A			62,350			3,657			7
Distribution fees Class B			5,145			581			20
Distribution fees Class C			13,786			10,816			42
Distribution fees Class R			2			2			2
Administrative servicing fees Class A			6,516			—			—
Administrative servicing fees Class R			2			1			1
Dividend expense for securities sold short			286,797			—			—
Registration and filing fees			30,009			44,676			52,129
Other			30,361			15,484			4,394
	Total expenses before reimbursed expenses		906,883			219,436			76,182
Expenses reimbursed			(14,723	)		(30,330	)		(53,910	)
	Total Expenses		892,160			189,106			22,272
Net Investment Income (Loss)			(454,861	)		448,406			(12,230	)
REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) on investment transactions			4,916,186			(409,636	)		(288,140	)
Net realized gains (losses) on short sale transactions			(5,200,917	)		—			—
Net realized gains (losses) on swap transactions			3,021,327			—			—
Net realized gains (losses) on investment, short sale and swap transactions			2,736,596			(409,636	)		(288,140	)
Net change in unrealized appreciation/depreciation on investments, short sales, and swaps			154,329			(176,234	)		56,710
Net realized/unrealized gains (losses) on investments, short sales, and swaps			2,890,925			(585,870	)		(231,430	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		$	2,436,064		$	(137,464	)	$	(243,660	)

(a)	For the period from December 29, 2003 (commencement of operations) through October 31, 2004.
(b)	For the period from March 30, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

146 Annual Report 2004

Statements of Changes in Net Assets

	Gartmore High Yield						Gartmore Value
	Bond Fund						Opportunities Fund
	Year Ended			Year Ended			Year Ended			Year Ended
	October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)	$	6,245,178		$	9,009,509		$	18,758		$	46,607
Net realized gains (losses) on investment, future, foreign currency, short sale and swap transactions		5,076,078			2,372,104			5,404,162			903,791
Net change in unrealized appreciation/depreciation on investments, futures, translation of assets and liabilities denominated in foreign currencies, short sales and swaps		(5,990,113	)		11,298,725			(1,765,389	)		6,892,594
Change in net assets resulting from operations		5,331,143			22,680,338			3,657,531			7,842,992
Distributions to Class A Shareholders from:
Net investment income		(318,947	)		(321,724	)		(9,434	)		(28,121	)
Net realized gains on investments		—			—			—			—
Distributions to Class B Shareholders from:
Net investment income		(48,620	)		(45,800	)		—			(469	)
Net realized gains on investments		—			—			—			—
Distributions to Class C Shareholders from:
Net investment income		(184,379	)		(95,475	)		—			(19	)
Net realized gains on investments		—			—			—			—
Distributions to Class R Shareholders from:
Net investment income		(46	) (a)		—			—			—
Net realized gains on investments		—			—			—			—
Distributions to Institutional Service Class Shareholders from:
Net investment income		(5,693,160	)		(8,546,510	)		(24,707	)		(43,596	)
Net realized gains on investments		—			—			—			—
Distributions to Institutional Class Shareholders from:
Net investment income		(26	) (b)		—			—			—
Net realized gains on investments		—			—			—			—
Change in net assets from shareholder distributions		(6,245,178	)		(9,009,509	)		(34,141	)		(72,205	)
Change in net assets from capital transactions		(88,703,708	)		15,007,980			(8,405,689	)		5,755,345
Change in net assets		(89,617,743	)		28,678,809			(4,782,299	)		13,526,132
Net Assets:
Beginning of period		114,055,733			85,376,924			36,808,820			23,282,688
End of period	$	24,437,990		$	114,055,733		$	32,026,521		$	36,808,820

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Gartmore Micro Cap
	Equity Fund
	Year Ended			Year Ended
	October 31, 2004			October 31, 2003
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)	$	(1,199,048	)	$	(71,523	)
Net realized gains (losses) on investment, future, foreign currency, short sale and swap transactions		4,115,524			302,641
Net change in unrealized appreciation/depreciation on investments, futures, translation of assets and liabilities denominated in foreign currencies, short sales and swaps		5,816,745			3,360,291
Change in net assets resulting from operations		8,733,221			3,591,409
Distributions to Class A Shareholders from:
Net investment income		—			—
Net realized gains on investments		(8,895	)		—
Distributions to Class B Shareholders from:
Net investment income		—			—
Net realized gains on investments		(889	)		—
Distributions to Class C Shareholders from:
Net investment income		—			—
Net realized gains on investments		(3,920	)		—
Distributions to Class R Shareholders from:
Net investment income		—			—
Net realized gains on investments		—	(a)(c)		—
Distributions to Institutional Service Class Shareholders from:
Net investment income		—			—
Net realized gains on investments		(7	)		—
Distributions to Institutional Class Shareholders from:
Net investment income		—			—
Net realized gains on investments		(506	) (b)		—
Change in net assets from shareholder distributions		(14,217	)		—
Change in net assets from capital transactions		79,393,895			21,609,219
Change in net assets		88,112,899			25,200,628
Net Assets:
Beginning of period		27,195,271			1,994,643
End of period	$	115,308,170		$	27,195,271

(a)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(b)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(c)	Amount is less than a $1.

See notes to financial statements.

2004 Annual Report 147

Concept Series

Statements of Changes in Net Assets

			Gartmore U.S. Growth Leaders Long-Short Fund
			Year Ended			Period Ended			Year Ended
			October 31, 2004			October 31, 2003 (a)			June 30, 2003
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)			$	(454,861	)	$	(191,261	)	$	(493,644	)
Net realized gains (losses) on investment, future, foreign currency, short sale and swap transactions				2,736,596			6,947,583			(8,027,305	)
Net change in unrealized appreciation/depreciation on investments, futures, translation of assets and liabilities denominated in foreign currencies, short sales and swaps				154,329			(3,892,480	)		7,620,932
Change in net assets resulting from operations				(2,764,853	)		2,863,842			(900,017	)
Distributions to Class A Shareholders from:
	Net investment income			(7,546,048	)		—			—
	Net realized gains on investments			—			—			—
Distributions to Class B Shareholders from:
	Net investment income			(119,661	)		—			—
	Net realized gains on investments			—			—			—
Distributions to Class C Shareholders from:
	Net investment income			(513,025	)		—			—
	Net realized gains on investments			—			—			—
Distributions to Class R Shareholders from:
	Net investment income			—			—			—
	From net realized gain on investment			—			—			—
Distributions to Institutional Service Class Shareholders from:
	Net investment income			—			—			—
	Net realized gains on investments			—			—			—
Distributions to Institutional Class Shareholders from:
	Net investment income			—			—			—
	Net realized gains on investments			—			—			—
Change in net assets from shareholder distributions				(8,178,734	)		—			—
Change in net assets from capital transactions				2,411,514			(2,520,766	)		(14,651,576	)
Change in net assets				(8,532,073	)		343,076			(15,551,593	)
Net Assets:
		Beginning of period		31,368,254			31,025,178			46,576,771
		End of period	$	22,836,181		$	31,368,254		$	31,025,178

[Additional columns below]

[Continued from above table, first column(s) repeated]

						Gartmore Small Cap
			Gartmore Convertible			Growth Fund
			Fund
			Period Ended			Period Ended
			October 31, 2004 (b)			October 31, 2004 (c)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)			$	448,406		$	(12,230	)
Net realized gains (losses) on investment, future, foreign currency, short sale and swap transactions				(409,636	)		(288,140	)
Net change in unrealized appreciation/depreciation on investments, futures, translation of assets and liabilities denominated in foreign currencies, short sales and swaps				(176,234	)		56,710
Change in net assets resulting from operations				(137,464	)		(243,660	)
Distributions to Class A Shareholders from:
	Net investment income			(31,238	) (d)		—
	Net realized gains on investments			—			—
Distributions to Class B Shareholders from:
	Net investment income			(1,215	) (d)		—
	Net realized gains on investments			—			—
Distributions to Class C Shareholders from:
	Net investment income			(20,050	) (d)		—
	Net realized gains on investments			—			—
Distributions to Class R Shareholders from:
	Net investment income			(9	) (e)		—
	From net realized gain on investment			—			—
Distributions to Institutional Service Class Shareholders from:
	Net investment income			(2,589	) (d)		—
	Net realized gains on investments			—			—
Distributions to Institutional Class Shareholders from:
	Net investment income			(323,490	)		—
	Net realized gains on investments			—			—
Change in net assets from shareholder distributions				(378,591	)		—
Change in net assets from capital transactions				35,578,803			3,064,534
Change in net assets				35,062,748			2,820,874
Net Assets:
		Beginning of period		—			—
		End of period	$	35,062,748		$	2,820,874

(a)	For the period from July 1, 2003 through October 31, 2003. The fund changed its fiscal year end from June 30 to October 31.
(b)	For the period from December 29, 2003 (commencement of operations) through October 31, 2004.
(c)	For the period from March 30, 2004 (commencement of operations) through October 31, 2004.
(d)	For the period from January 20, 2004 (commencement of operations) through October 31, 2004.
(e)	For the period from May 14, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

148 Annual Report 2004

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Gartmore High Yield Bond Fund

			Investment Activities
					Net Realized
					and
	Net Asset		Net		Unrealized			Total
	Value,		Investment		Gains			from
	Beginning		Income		(Losses) on			Investment
	of Period		(Loss)		Investments			Activities
Class A Shares
Period Ended October 31, 2000 (d)	$	10.00		0.86		(2.04	)		(1.18	)
Year Ended October 31, 2001	$	7.96		0.84		(1.10	)		(0.26	)
Year Ended October 31, 2002	$	6.86		0.61		(0.87	)		(0.26	)
Year Ended October 31, 2003	$	5.99		0.56		0.89			1.45
Year Ended October 31, 2004	$	6.88		0.51		0.20			0.71
Class B Shares
Period Ended October 31, 2000 (d)	$	10.00		0.80		(2.04	)		(1.24	)
Year Ended October 31, 2001	$	7.96		0.78		(1.10	)		(0.32	)
Year Ended October 31, 2002	$	6.86		0.56		(0.88	)		(0.32	)
Year Ended October 31, 2003	$	5.98		0.52		0.89			1.41
Year Ended October 31, 2004	$	6.87		0.46		0.20			0.66
Class C Shares
Period Ended October 31, 2001 (e)	$	8.07		0.40		(1.21	)		(0.81	)
Year Ended October 31, 2002	$	6.86		0.56		(0.87	)		(0.31	)
Year Ended October 31, 2003	$	5.99		0.52		0.89			1.41
Year Ended October 31, 2004	$	6.88		0.46		0.20			0.66
Class R Shares
Period Ended October 31, 2004 (f)	$	7.00		0.32		0.07			0.39
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	10.00		0.87		(1.99	)		(1.12	)
Year Ended October 31, 2001	$	8.01		0.87		(1.10	)		(0.23	)
Year Ended October 31, 2002	$	6.92		0.63		(0.88	)		(0.25	)
Year Ended October 31, 2003	$	6.04		0.58		0.90			1.48
Year Ended October 31, 2004	$	6.94		0.53		0.20			0.73
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	6.90		0.18		0.24			0.42

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net						Net Asset
	Investment			Total			Value, End		Total
	Income			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2000 (d)		(0.86	)		(0.86	)	$	7.96		(12.48%	) (h)
Year Ended October 31, 2001		(0.84	)		(0.84	)	$	6.86		(3.59%	)
Year Ended October 31, 2002		(0.61	)		(0.61	)	$	5.99		(4.27%	)
Year Ended October 31, 2003		(0.56	)		(0.56	)	$	6.88		25.18%
Year Ended October 31, 2004		(0.51	)		(0.51	)	$	7.08		10.65%
Class B Shares
Period Ended October 31, 2000 (d)		(0.80	)		(0.80	)	$	7.96		(13.02%	) (h)
Year Ended October 31, 2001		(0.78	)		(0.78	)	$	6.86		(4.31%	)
Year Ended October 31, 2002		(0.56	)		(0.56	)	$	5.98		(5.11%	)
Year Ended October 31, 2003		(0.52	)		(0.52	)	$	6.87		24.36%
Year Ended October 31, 2004		(0.46	)		(0.46	)	$	7.07		9.92%
Class C Shares
Period Ended October 31, 2001 (e)		(0.40	)		(0.40	)	$	6.86		(10.15%	) (h)
Year Ended October 31, 2002		(0.56	)		(0.56	)	$	5.99		(4.96%	)
Year Ended October 31, 2003		(0.52	)		(0.52	)	$	6.88		24.32%
Year Ended October 31, 2004		(0.46	)		(0.46	)	$	7.08		9.92%
Class R Shares
Period Ended October 31, 2004 (f)		(0.32	)		(0.32	)	$	7.07		5.73%	(h)
Institutional Service Class Shares
Period Ended October 31, 2000 (d)		(0.87	)		(0.87	)	$	8.01		(11.80%	) (h)
Year Ended October 31, 2001		(0.86	)		(0.86	)	$	6.92		(3.19%	)
Year Ended October 31, 2002		(0.63	)		(0.63	)	$	6.04		(4.12%	)
Year Ended October 31, 2003		(0.58	)		(0.58	)	$	6.94		25.51%
Year Ended October 31, 2004		(0.53	)		(0.53	)	$	7.14		10.90%
Institutional Class Shares
Period Ended October 31, 2004 (g)		(0.18	)		(0.18	)	$	7.14		6.10%	(h)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2000 (d)	$	2,804		0.95%	(i)		12.35%	(i)		1.15%	(i)		12.15%	(i)		76.93%
Year Ended October 31, 2001	$	2,801		0.95%			11.10%			1.11%			10.94%			83.79%
Year Ended October 31, 2002	$	2,002		0.97%			9.20%			1.09%			9.08%			93.27%
Year Ended October 31, 2003	$	4,028		1.02%			8.47%			1.10%			8.39%			104.54%
Year Ended October 31, 2004	$	4,027		1.03%			7.34%			1.20%			7.17%			77.13%
Class B Shares
Period Ended October 31, 2000 (d)	$	188		1.70%	(i)		13.09%	(i)		3.46%	(i)		11.33%	(i)		76.93%
Year Ended October 31, 2001	$	244		1.70%			10.35%			2.43%			9.62%			83.79%
Year Ended October 31, 2002	$	355		1.70%			8.46%			1.83%			8.33%			93.27%
Year Ended October 31, 2003	$	764		1.69%			7.81%			1.78%			7.73%			104.54%
Year Ended October 31, 2004	$	734		1.70%			6.63%			1.89%			6.45%			77.13%
Class C Shares
Period Ended October 31, 2001 (e)	$	5		1.70%	(i)		10.05%	(i)		8.58%	(i)		3.17%	(i)		83.79%
Year Ended October 31, 2002	$	53		1.70%			8.55%			1.97%			8.28%			93.27%
Year Ended October 31, 2003	$	2,986		1.71%			7.45%			1.77%			7.39%			104.54%
Year Ended October 31, 2004	$	1,836		1.71%			6.66%			1.86%			6.51%			77.13%
Class R Shares
Period Ended October 31, 2004 (f)	$	1		1.32%	(i)		6.89%	(i)		1.55%	(i)		6.66%	(i)		77.13%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	88,639		0.70%	(i)		11.46%	(i)		0.83%	(i)		11.33%	(i)		76.93%
Year Ended October 31, 2001	$	85,885		0.70%			11.30%			0.76%			11.24%			83.79%
Year Ended October 31, 2002	$	82,967		0.70%			9.38%			0.79%			9.29%			93.27%
Year Ended October 31, 2003	$	106,278		0.70%			8.87%			0.78%			8.79%			104.54%
Year Ended October 31, 2004	$	17,839		0.71%			7.60%			0.77%			7.53%			77.13%
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	1		0.71%	(i)		7.44%	(i)		1.24%	(i)		6.91%	(i)		77.13%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as whole without distinguishing among the classes of shares.
(d)	For the period from December 29, 1999 (commencement of operations) through October 31, 2000.
(e)	For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(f)	For the period from February 27, 2004 (commencement of operations) through October 31, 2004.
(g)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(h)	Not annualized.
(i)	Annualized.

See notes to financial statements.

2004 Annual Report 149

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Concept Series

Gartmore Value Opportunities Fund

			Investment Activities
								Net Realized
								and
	Net Asset		Net					Unrealized			Total
	Value,		Investment					Gains			from
	Beginning		Income			Redemption		(Losses) on			Investment
	of Period		(Loss)			Fees		Investments			Activities
Class A Shares
Period Ended October 31, 2000 (d)	$	10.00		0.06			—		2.38			2.44
Year Ended October 31, 2001	$	12.37		0.10			—		(0.20	)		(0.10	)
Year Ended October 31, 2002	$	12.17		0.05			0.01		(0.98	)		(0.92	)
Year Ended October 31, 2003	$	11.05		0.03			—		3.42			3.45
Year Ended October 31, 2004	$	14.47		—			—		1.55			1.55
Class B Shares
Period Ended October 31, 2000 (d)	$	10.00		0.01			—		2.37			2.38
Year Ended October 31, 2001	$	12.36		0.02			—		(0.20	)		(0.18	)
Year Ended October 31, 2002	$	12.16		(0.03	)		0.01		(0.98	)		(1.00	)
Year Ended October 31, 2003	$	11.00		(0.06	)		—		3.40			3.34
Year Ended October 31, 2004	$	14.34		(0.11	)		—		1.55			1.44
Class C Shares
Period Ended October 31, 2001 (e)	$	13.08		0.01			—		(0.93	)		(0.92	)
Year Ended October 31, 2002	$	12.13		(0.03	)		0.01		(0.97	)		(0.99	)
Year Ended October 31, 2003	$	10.98		(0.04	)		—		3.37			3.33
Year Ended October 31, 2004	$	14.31		(0.09	)		—		1.53			1.44
Class R Shares
Period Ended October 31, 2004 (f)	$	15.45		(0.05	)		—		0.43			0.38
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	10.00		0.07			—		2.40			2.47
Year Ended October 31, 2001	$	12.42		0.13			—		(0.19	)		(0.06	)
Year Ended October 31, 2002	$	12.24		0.07			0.01		(0.98	)		(0.90	)
Year Ended October 31, 2003	$	11.12		0.04			—		3.44			3.48
Year Ended October 31, 2004	$	14.56		0.04			—		1.55			1.59
Institutional Class Shares
Year Ended October 31, 2004 (g)	$	16.18		—			—		(0.04	)		(0.04	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net			Net						Net Asset
	Investment			Realized			Total			Value, End		Total
	Income			Gains			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2000 (d)		(0.07	)		—			(0.07	)	$	12.37		24.38%	(h)
Year Ended October 31, 2001		(0.10	)		—			(0.10	)	$	12.17		(0.87%	)
Year Ended October 31, 2002		(0.05	)		(0.15	)		(0.20	)	$	11.05		(7.75%	)
Year Ended October 31, 2003		(0.03	)		—			(0.03	)	$	14.47		31.32%
Year Ended October 31, 2004		(0.01	)		—			(0.01	)	$	16.01		10.72%
Class B Shares
Period Ended October 31, 2000 (d)		(0.02	)		—			(0.02	)	$	12.36		23.79%	(h)
Year Ended October 31, 2001		(0.02	)		—			(0.02	)	$	12.16		(1.45%	)
Year Ended October 31, 2002		(0.01	)		(0.15	)		(0.16	)	$	11.00		(8.39%	)
Year Ended October 31, 2003		—			—			—		$	14.34		30.39%
Year Ended October 31, 2004		—			—			—		$	15.78		10.04%
Class C Shares
Period Ended October 31, 2001 (e)		(0.03	)		—			(0.03	)	$	12.13		(7.08%	) (h)
Year Ended October 31, 2002		(0.01	)		(0.15	)		(0.16	)	$	10.98		(8.31%	)
Year Ended October 31, 2003		—			—			—		$	14.31		30.35%
Year Ended October 31, 2004		—			—			—		$	15.75		10.06%
Class R Shares
Period Ended October 31, 2004 (f)		—			—			—		$	15.83		2.46%	(h)
Institutional Service Class Shares
Period Ended October 31, 2000 (d)		(0.05	)		—			(0.05	)	$	12.42		24.72%	(h)
Year Ended October 31, 2001		(0.12	)		—			(0.12	)	$	12.24		(0.49%	)
Year Ended October 31, 2002		(0.07	)		(0.15	)		(0.22	)	$	11.12		(7.56%	)
Year Ended October 31, 2003		(0.04	)		—			(0.04	)	$	14.56		31.39%
Year Ended October 31, 2004		(0.02	)		—			(0.02	)	$	16.13		10.91%
Institutional Class Shares
Year Ended October 31, 2004 (g)		—			—			—		$	16.14		(0.19%	) (h)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2000 (d)	$	2,460		1.35%	(i)		0.62%	(i)		6.59%	(i)		(4.62%	) (i)		119.39%
Year Ended October 31, 2001	$	10,789		1.35%			0.69%			2.07%			(0.03%	)		139.75%
Year Ended October 31, 2002	$	9,766		1.31%			0.39%			1.48%			0.22%			108.62%
Year Ended October 31, 2003	$	12,156		1.30%			0.20%			1.41%			0.09%			90.02%
Year Ended October 31, 2004	$	12,244		1.36%			(0.01%	)		1.39%			(0.04%	)		146.98%
Class B Shares
Period Ended October 31, 2000 (d)	$	751		1.95%	(i)		0.10%	(i)		7.70%	(i)		(5.65%	) (i)		119.39%
Year Ended October 31, 2001	$	2,708		1.95%			0.09%			3.06%			(1.02%	)		139.75%
Year Ended October 31, 2002	$	2,362		1.98%			(0.28%	)		2.22%			(0.52%	)		108.62%
Year Ended October 31, 2003	$	2,641		2.00%			(0.49%	)		2.12%			(0.60%	)		90.02%
Year Ended October 31, 2004	$	2,631		2.01%			(0.66%	)		2.04%			(0.69%	)		146.98%
Class C Shares
Period Ended October 31, 2001 (e)	$	108		1.95%	(i)		(0.01%	) (i)		3.29%	(i)		(1.35%	) (i)		139.75%
Year Ended October 31, 2002	$	133		1.99%			(0.30%	)		2.23%			(0.54%	)		108.62%
Year Ended October 31, 2003	$	342		2.00%			(0.56%	)		2.09%			(0.65%	)		90.02%
Year Ended October 31, 2004	$	652		2.01%			(0.67%	)		2.05%			(0.71%	)		146.98%
Class R Shares
Period Ended October 31, 2004 (f)	$	1		1.60%	(i)		(0.35%	) (i)		1.64%	(i)		(0.39%	)  (i)		146.98%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	4,441		1.00%	(i)		0.98%	(i)		5.99%	(i)		(4.01%	) (i)		119.39%
Year Ended October 31, 2001	$	10,130		1.00%			1.07%			1.81%			1.26%			139.75%
Year Ended October 31, 2002	$	11,022		1.16%			0.52%			1.40%			0.28%			108.62%
Year Ended October 31, 2003	$	21,670		1.20%			0.27%			1.30%			0.16%			90.02%
Year Ended October 31, 2004	$	16,497		1.19%			0.17%			1.22%			0.15%			146.98%
Institutional Class Shares
Year Ended October 31, 2004 (g)	$	1		1.09%	(i)		0.09%	(i)		1.17%	(i)		0.01%	(i)		146.98%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as whole without distinguishing among the classes of shares.
(d)	For the period from December 29, 1999 (commencement of operations) through October 31, 2000.
(e)	For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(f)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(g)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(h)	Not annualized.
(i)	Annualized.

See notes to financial statements.

150 Annual Report 2004

Gartmore Micro Cap Equity Fund

			Investment Activities
	Net Asset		Net
	Value,		Investment
	Beginning		Income			Redemption
	of Period		(Loss)			Fees
Class A Shares
Period Ended October 31, 2002 (d)(e)	$	10.00		(0.04	)		—
Year Ended October 31, 2003	$	8.64		(0.02	)		—
Year Ended October 31, 2004	$	15.91		(0.18	)		0.02
Class B Shares
Period Ended October 31, 2002 (d)	$	10.00		(0.06	)		—
Year Ended October 31, 2003	$	8.61		(0.06	)		—
Year Ended October 31, 2004	$	15.74		(0.26	)		0.02
Class C Shares
Period Ended October 31, 2002 (d)	$	10.00		(0.06	)		—
Year Ended October 31, 2003	$	8.61		(0.05	)		—
Year Ended October 31, 2004	$	15.76		(0.24	)		0.02
Class R Shares
Period Ended October 31, 2004 (f)	$	17.38		(0.27	)		0.02
Institutional Service Class Shares
Period Ended October 31, 2002 (d)	$	10.00		(0.03	)		—
Year Ended October 31, 2003	$	8.64		(0.13	)		—
Year Ended October 31, 2004	$	15.96		(0.28	)		0.02
Institutional Class Shares
Period Ended October 31, 2002 (d)	$	10.00		(0.03	)		—
Year Ended October 31, 2003	$	8.64		(0.13	)		—
Year Ended October 31, 2004	$	15.96		(0.16	)		0.02

[Additional columns below]

[Continued from above table, first column(s) repeated]

							Distributions
	Investment Activities
	Net Realized
	and
	Unrealized			Total
	Gains			from			Net
	(Losses) on			Investment			Realized
	Investments			Activities			Gains
Class A Shares
Period Ended October 31, 2002 (d)(e)		(1.32	)		(1.36	)		—
Year Ended October 31, 2003		7.29			7.27			—
Year Ended October 31, 2004		3.81			3.65			—	(i)
Class B Shares
Period Ended October 31, 2002 (d)		(1.33	)		(1.39	)		—
Year Ended October 31, 2003		7.19			7.13			—
Year Ended October 31, 2004		3.72			3.48			—	(i)
Class C Shares
Period Ended October 31, 2002 (d)		(1.33	)		(1.39	)		—
Year Ended October 31, 2003		7.20			7.15			—
Year Ended October 31, 2004		3.70			3.48			—	(i)
Class R Shares
Period Ended October 31, 2004 (f)		2.14			1.89			—	(i)
Institutional Service Class Shares
Period Ended October 31, 2002 (d)		(1.33	)		(1.36	)		—
Year Ended October 31, 2003		7.45			7.32			—
Year Ended October 31, 2004		3.97			3.71			—	(i)
Institutional Class Shares
Period Ended October 31, 2002 (d)		(1.33	)		(1.36	)		—
Year Ended October 31, 2003		7.45			7.32			—
Year Ended October 31, 2004		3.85			3.71			—	(i)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Net Asset
	Value, End		Total
	of Period		Return (a)
Class A Shares
Period Ended October 31, 2002 (d)(e)	$	8.64		(13.60%	) (g)
Year Ended October 31, 2003	$	15.91		84.14%
Year Ended October 31, 2004	$	19.56		22.96%
Class B Shares
Period Ended October 31, 2002 (d)	$	8.61		(13.90%	) (g)
Year Ended October 31, 2003	$	15.74		82.81%
Year Ended October 31, 2004	$	19.22		22.13%
Class C Shares
Period Ended October 31, 2002 (d)	$	8.61		(13.90%	) (g)
Year Ended October 31, 2003	$	15.76		83.04%
Year Ended October 31, 2004	$	19.24		22.10%
Class R Shares
Period Ended October 31, 2004 (f)	$	19.27		10.89%	(g)
Institutional Service Class Shares
Period Ended October 31, 2002 (d)	$	8.64		(13.60%	) (g)
Year Ended October 31, 2003	$	15.96		84.72%
Year Ended October 31, 2004	$	19.67		23.26%
Institutional Class Shares
Period Ended October 31, 2002 (d)	$	8.64		(13.60%	) (g)
Year Ended October 31, 2003	$	15.96		84.72%
Year Ended October 31, 2004	$	19.67		23.26%

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended October 31, 2002 (d)(e)	$	310		1.80%	(h)		(1.32%	) (h)		8.73%	(h)		(8.25%	) (h)		56.08%
Year Ended October 31, 2003	$	17,023		1.82%			(1.32%	)		2.26%			(1.76%	)		104.50%
Year Ended October 31, 2004	$	74,983		1.81%			(1.35%	)		1.82%			(1.37%	)		107.36%
Class B Shares
Period Ended October 31, 2002 (d)	$	43		2.55%	(h)		(2.04%	) (h)		8.46%	(h)		(7.95%	) (h)		56.08%
Year Ended October 31, 2003	$	1,611		2.54%			(2.08%	)		2.99%			(2.52%	)		104.50%
Year Ended October 31, 2004	$	6,403		2.55%			(2.11%	)		2.57%			(2.13%	)		107.36%
Class C Shares
Period Ended October 31, 2002 (d)	$	43		2.55%	(h)		(2.04%	) (h)		8.46%	(h)		(7.95%	) (h)		56.08%
Year Ended October 31, 2003	$	5,609		2.54%			(2.04%	)		2.90%			(2.40%	)		104.50%
Year Ended October 31, 2004	$	30,377		2.55%			(2.11%	)		2.57%			(2.13%	)		107.36%
Class R Shares
Period Ended October 31, 2004 (f)	$	1		2.17%	(h)		(1.78%	) (h)		2.17%	(h)		(1.78%	) (h)		107.36%
Institutional Service Class Shares
Period Ended October 31, 2002 (d)	$	43		1.55%	(h)		(1.04%	) (h)		7.45%	(h)		(6.94%	) (h)		56.08%
Year Ended October 31, 2003	$	80		1.55%			(1.15%	)		2.40%			(2.00%	)		104.50%
Year Ended October 31, 2004	$	51		1.51%			(1.10%	)		1.52%			(1.11%	)		107.36%
Institutional Class Shares
Period Ended October 31, 2002 (d)	$	1,556		1.55%	(h)		(1.04%	) (h)		7.46%	(h)		(6.95%	) (h)		56.08%
Year Ended October 31, 2003	$	2,873		1.55%			(1.15%	)		2.40%			(2.00%	)		104.50%
Year Ended October 31, 2004	$	3,493		1.52%			(1.14%	)		1.54%			(1.15%	)		107.36%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as whole without distinguishing among the classes of shares.
(d)	For the period from June 27, 2002 (commencement of operations) through October 31, 2002.
(e)	Net investment income (loss) is based on average shares outstanding during the period.
(f)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(g)	Not annualized.
(h)	Annualized.
(i)	Amount is less than $0.005.

See notes to financial statements.

2004 Annual Report 151

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Concept Series

Gartmore U.S. Growth Leaders Long-Short Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized			Total
	Value,		Investment			Gains			from
	Beginning		Income			(Losses) on			Investment
	of Period		(Loss)			Investments			Activities
Class A Shares
Period Ended June 30, 2002 (d)	$	11.14		6.65			(6.90	)		(0.25	)
Year Ended June 30, 2003 (f)	$	10.89		(0.08	)		0.14			0.06
Period Ended October 31, 2003 (e)	$	10.95		(0.07	)		1.12			1.05
Year Ended October 31, 2004	$	12.00		0.11			0.77			0.88
Class B Shares
Period Ended June 30, 2002 (d)	$	11.14		(0.07	)		(0.17	)		(0.24	)
Year Ended June 30, 2003 (f)	$	10.90		(0.23	)		0.19			(0.04	)
Period Ended October 31, 2003 (e)(f)	$	10.86		(0.10	)		1.12			1.02
Year Ended October 31, 2004	$	11.88		0.22			0.58			0.80
Class C Shares
Year Ended June 30, 2000	$	18.01		(0.71	)		12.41			11.70
Year Ended June 30, 2001	$	27.72		(0.15	)		(8.43	)		(8.58	)
Year Ended June 30, 2002	$	10.02		(0.66	)		(0.31	)		(0.97	)
Year Ended June 30, 2003	$	9.05		(0.19	)		0.17			(0.02	)
Period Ended October 31, 2003 (e)	$	9.03		(0.08	)		0.93			0.85
Year Ended October 31, 2004	$	9.88		0.64			(0.01	)		0.63
Class R Shares
Period Ended October 31, 2004 (g)	$	9.21		(0.11	)		0.31			0.20
Institutional Class Shares
Period Ended October 31, 2004 (h)	$	9.28		(0.02	)		0.31			0.29

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net			Net						Net Asset
	Investment			Realized			Total			Value, End		Total
	Income			Gains			Distributions			of Period		Return (a)
Class A Shares
Period Ended June 30, 2002 (d)		—			—			—		$	10.89		(2.24%	) (i)
Year Ended June 30, 2003 (f)		—			—					$	10.95		0.55%
Period Ended October 31, 2003 (e)		—			—			—		$	12.00		9.59%	(i)
Year Ended October 31, 2004		(3.32	)		—			(3.32	)	$	9.56		9.03%
Class B Shares
Period Ended June 30, 2002 (d)		—			—			—		$	10.90		(2.15%	) (i)
Year Ended June 30, 2003 (f)		—			—					$	10.86		(0.37%	)
Period Ended October 31, 2003 (e)(f)		—			—			—		$	11.88		9.39%	(i)
Year Ended October 31, 2004		(3.30	)		—			(3.30	)	$	9.38		8.22%
Class C Shares
Year Ended June 30, 2000		—			(1.99	)		(1.99	)	$	27.72		65.61%
Year Ended June 30, 2001		—			(9.12	)		(9.12	)	$	10.02		(40.62%	)
Year Ended June 30, 2002		—			—			—		$	9.05		(17.65%	)
Year Ended June 30, 2003		—			—			—		$	9.03		(0.22%	)
Period Ended October 31, 2003 (e)		—			—			—		$	9.88		9.41%	(i)
Year Ended October 31, 2004		(3.30	)		—			(3.30	)	$	7.21		8.20%
Class R Shares
Period Ended October 31, 2004 (g)		—			—			—		$	9.41		2.17%	(i)
Institutional Class Shares
Period Ended October 31, 2004 (h)		—			—			—		$	9.57		3.12%	(i)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Ratios / Supplemental Data
												Ratio of Net
						Ratio of Net			Ratio of			Investment
						Investment			Expenses			Income (Loss)
	Net Assets		Ratio of			Income			(Prior to			(Prior to
	at End of		Expenses			(Loss)			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Net Assets (b)			Turnover (c)
Class A Shares
Period Ended June 30, 2002 (d)	$	144		1.95%	(j)		122.95%	(j)		2.26%	(j)		122.64%	(j)		425%
Year Ended June 30, 2003 (f)	$	29,561		3.47%			(2.04%	)		3.66%			(2.23%	)		424%
Period Ended October 31, 2003 (e)	$	29,468		3.23%	(j)		(1.77%	) (j)		(k)			(k)			126.69%
Year Ended October 31, 2004	$	24,411		2.20%			(1.65%	)		2.25%			(1.70%	)		577.36%
Class B Shares
Period Ended June 30, 2002 (d)	$	121		2.74%	(j)		(1.45%	) (j)		2.86%	(j)		(1.57%	) (j)		425%
Year Ended June 30, 2003 (f)	$	141		3.73%			(2.31%	)		4.54%			(3.12%	)		424%
Period Ended October 31, 2003 (e)(f)	$	414		3.98%	(j)		(2.54%	) (j)		(k)			(k)			126.69%
Year Ended October 31, 2004	$	653		2.93%			(2.30%	)		3.00%			(2.36%	)		577.36%
Class C Shares
Year Ended June 30, 2000	$	9,927		2.82%			(2.65%	)		4.67%			(4.50%	)		204%
Year Ended June 30, 2001	$	3,102		3.04%			(1.51%	)		3.82%			(2.29%	)		143%
Year Ended June 30, 2002	$	1,819		3.28%			(5.41%	)		3.71%			(5.87%	)		425%
Year Ended June 30, 2003	$	1,323		3.72%			(2.31%	)		4.54%			(3.13%	)		424%
Period Ended October 31, 2003 (e)	$	1,487		3.98%	(j)		(2.52%	) (j)		(k)			(k)			126.69%
Year Ended October 31, 2004	$	2,641		2.92%			(2.29%	)		3.00%			(2.37%	)		577.36%
Class R Shares
Period Ended October 31, 2004 (g)	$	1		2.45%	(j)		(1.74%	) (j)		2.49%	(j)		(1.78%	) (j)		577.36%
Institutional Class Shares
Period Ended October 31, 2004 (h)	$	331		1.90%	(j)		(0.52%	) (j)		2.09%	(j)		(0.72%	) (j)		577.36%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as whole without distinguishing among the classes of shares.
(d)	For the period from October 31, 2001 (commencement of operations) through June 30, 2002.
(e)	For the period from July 1, 2003 through October 31, 2003.
(f)	Net investment income (loss) is based on average shares outstanding during the period.
(g)	For the period from February 27, 2004 (commencement of operations) through October 31, 2004.
(h)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(i)	Not annualized.
(j)	Annualized.
(k)	There were no fee reductions in this period.

See notes to financial statements.

152 Annual Report 2004

Gartmore Convertible Fund

			Investment Activities
					Net Realized
					and
	Net Asset		Net		Unrealized			Total
	Value,		Investment		Gains			from
	Beginning		Income		(Losses) on			Investment
	of Period		(Loss)		Investments			Activities
Class A Shares
Period Ended October 31, 2004 (d)	$	10.09		0.15		(0.32	)		(0.17	)
Class B Shares
Period Ended October 31, 2004 (d)	$	10.09		0.10		(0.35	)		(0.25	)
Class C Shares
Period Ended October 31, 2004 (d)	$	10.09		0.10		(0.34	)		(0.24	)
Class R Shares
Period Ended October 31, 2004 (e)	$	9.66		0.08		0.09			0.17
Institutional Service Class Shares
Period Ended October 31, 2004 (d)	$	10.09		0.12		(0.28	)		(0.16	)
Institutional Class Shares
Period Ended October 31, 2004 (f)	$	10.00		0.18		(0.25	)		(0.07	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Distributions
	Net						Net Asset
	Investment			Total			Value, End		Total
	Income			Distributions			of Period		Return (a)
Class A Shares
Period Ended October 31, 2004 (d)		(0.14	)		(0.14	)	$	9.78		(1.68%	) (g)
Class B Shares
Period Ended October 31, 2004 (d)		(0.11	)		(0.11	)	$	9.73		(2.46%	) (g)
Class C Shares
Period Ended October 31, 2004 (d)		(0.11	)		(0.11	)	$	9.74		(2.41%	) (g)
Class R Shares
Period Ended October 31, 2004 (e)		(0.09	)		(0.09	)	$	9.74		1.72%	(g)
Institutional Service Class Shares
Period Ended October 31, 2004 (d)		(0.15	)		(0.15	)	$	9.78		(0.68%	) (g)
Institutional Class Shares
Period Ended October 31, 2004 (f)		(0.15	)		(0.15	)	$	9.78		(1.56%	) (g)

[Additional columns below]

[Continued from above table, first column(s) repeated]

Ratios / Supplemental Data

Ratio of Net

Ratio of Net

Ratio of

Investment

Investment

Expenses

Income (Loss)

Net Assets

Ratio of

Income

(Prior to

(Prior to

at End of

Expenses

(Loss)

Reimbursements)

Reimbursements)

Period

to Average

to Average

to Average

to Average

Portfolio

(000s)

Net Assets

Net Assets

Net Assets (b)

Net Assets (b)

Turnover (c)

Class A Shares

Period Ended October 31, 2004 (d)

$

2,988

1.20%

(h)

2.28%

(h)

1.36%

(h)

2.12%

(h)

153.08%

Class B Shares

Period Ended October 31, 2004 (d)

$

210

1.95%

(h)

1.55%

(h)

2.08%

(h)

1.42%

(h)

153.08%

Class C Shares

Period Ended October 31, 2004 (d)

$

3,253

1.95%

(h)

1.52%

(h)

2.09%

(h)

1.38%

(h)

153.08%

Class R Shares

Period Ended October 31, 2004 (e)

$

1

1.58%

(h)

1.75%

(h)

1.59%

(h)

1.75%

(h)

153.08%

Institutional Service Class Shares

Period Ended October 31, 2004 (d)

$

311

0.95%

(h)

2.28%

(h)

1.10%

(h)

2.13%

(h)

153.08%

Institutional Class Shares

Period Ended October 31, 2004 (f)

$

28,299

0.95%

(h)

2.53%

(h)

1.12%

(h)

2.36%

(h)

153.08%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from January 20, 2004 (commencement of operations) through October 31, 2004.
(e)	For the period from May 14, 2004 (commencement of operations) through October 31, 2004.
(f)	For the period from December 29, 2003 (commencement of operations) through October 31, 2004.
(g)	Not annualized.
(h)	Annualized.

See notes to financial statements.

2004 Annual Report 153

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Concept Series

Gartmore Small Cap Growth Fund

			Investment Activities
						Net Realized
						and
	Net Asset		Net			Unrealized			Total
	Value,		Investment			Gains			from
	Beginning		Income			(Losses) on			Investment
	of Period		(Loss)			Investments			Activities
Class A Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.01	)		(0.82	)		(0.83	)
Class B Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.02	)		(0.84	)		(0.86	)
Class C Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.02	)		(0.85	)		(0.87	)
Class R Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.07	)		(0.77	)		(0.84	)
Institutional Service Class Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.04	)		(0.77	)		(0.81	)
Institutional Class Shares
Period Ended October 31, 2004 (d)	$	10.00		(0.04	)		(0.77	)		(0.81	)

[Additional columns below]

[Continued from above table, first column(s) repeated]

	Net Asset
	Value, End		Total
	of Period		Return (a)
Class A Shares
Period Ended October 31, 2004 (d)	$	9.17		(8.30%	) (e)
Class B Shares
Period Ended October 31, 2004 (d)	$	9.14		(8.60%	) (e)
Class C Shares
Period Ended October 31, 2004 (d)	$	9.13		(8.60%	) (e)
Class R Shares
Period Ended October 31, 2004 (d)	$	9.16		(8.40%	) (e)
Institutional Service Class Shares
Period Ended October 31, 2004 (d)	$	9.19		(8.10%	) (e)
Institutional Class Shares
Period Ended October 31, 2004 (d)	$	9.19		(8.10%	) (e)

[Additional columns below]

[Continued from above table, first column(s) repeated]

Ratios / Supplemental Data

Ratio of Net

Ratio of Net

Ratio of

Investment

Investment

Expenses

Income (Loss)

Net Assets

Ratio of

Income

(Prior to

(Prior to

at End of

Expenses

(Loss)

Reimbursements)

Reimbursements)

Period

to Average

to Average

to Average

to Average

Portfolio

(000s)

Net Assets

Net Assets

Net Assets (b)

Net Assets (b)

Turnover (c)

Class A Shares

Period Ended October 31, 2004 (d)

$

14

1.67%

(f)

(0.81%

) (f)

4.98%

(f)

(4.12%

) (f)

633.92%

Class B Shares

Period Ended October 31, 2004 (d)

$

13

2.37%

(f)

(1.66%

) (f)

5.65%

(f)

(4.94%

) (f)

633.92%

Class C Shares

Period Ended October 31, 2004 (d)

$

40

2.35%

(f)

(1.68%

) (f)

5.42%

(f)

(4.76%

) (f)

633.92%

Class R Shares

Period Ended October 31, 2004 (d)

$

1

1.82%

(f)

(1.25%

) (f)

5.07%

(f)

(4.50%

) (f)

633.92%

Institutional Service Class Shares

Period Ended October 31, 2004 (d)

$

1

1.28%

(f)

(0.71%

) (f)

4.44%

(f)

(3.87%

) (f)

633.92%

Institutional Class Shares

Period Ended October 31, 2004 (d)

$

2,752

1.37%

(f)

(0.75%

) (f)

4.69%

(f)

(4.07%

) (f)

633.92%

(a)	Excludes sales charge.
(b)	During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(c)	Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)	For the period from March 30, 2004 (commencement of operations) through October 31, 2004.
(e)	Not annualized.
(f)	Annualized.

See notes to financial statements.

154 Annual Report 2004

Notes to Financial Statements

October 31, 2004

1. Organization

Gartmore Mutual Funds (the “Trust”) is an open-end management investment company. Prior to January 25, 2002 the Trust was named Nationwide Mutual Funds. The Trust was created under the laws of Ohio as an Ohio business trust pursuant to a Declaration of Trust dated as of October 30, 1997, as subsequently amended, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2004, the Trust had authorized an unlimited number of shares of beneficial interest (“shares”) without par value. The Trust operates forty-five (45) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the 18 funds listed below (individually a “Fund”, collectively the “Funds”):

-  Gartmore Global Financial Services Fund (“Global Financial Services”)

-  Gartmore Global Health Sciences Fund (“Global Health Sciences”)

-  Gartmore Global Natural Resources Fund (“Global Natural Resources”)

-  Gartmore Global Technology and Communications Fund (“Global Technology and Communications”)

-  Gartmore Global Utilities Fund (“Global Utilities”)

-  Gartmore Mid Cap Growth Leaders Fund (“Mid Cap Growth Leaders”) (formerly Millennium Growth Fund)

-  Gartmore Nationwide Leaders Fund (“Nationwide Leaders”)

-  Gartmore U.S. Growth Leaders Fund (“U.S. Growth Leaders”)

-  Gartmore Worldwide Leaders Fund (“Worldwide Leaders”)

-  Gartmore China Opportunities Fund (“China Opportunities”)

-  Gartmore Emerging Markets Fund (“Emerging Markets”)

-  Gartmore International Growth Fund (“International Growth”)

-  Gartmore High Yield Bond Fund (“High Yield Bond”)

-  Gartmore Value Opportunities Fund (“Value Opportunities”)

-  Gartmore Micro Cap Equity Fund (“Micro Cap Equity”)

-  Gartmore U.S. Growth Leaders Long-Short Fund (“U.S. Growth Leaders Long-Short”) (formerly Gartmore Long-Short Equity Plus Fund)

-  Gartmore Convertible Fund (“Convertible”)

-  Gartmore Small Cap Growth Fund (“Small Cap Growth”)

Under the Trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust’s maximum liability under these arrangements is unknown, as this would involve future claims that may be made against the Trust. However, based on experience, the Trust expects that risk of loss to be remote.

Pursuant to a plan and agreement of redomestication and reorganization dated September 15, 2004, the shareholders of the Trust will be requested, at a special meeting to be held on December 23, 2004, to approve the redomestication of the Trust to a Delaware statutory trust; said Trust redomestication is expected to be effective as of March 1, 2005. The redomestication is a change in statutory status and will not affect the operations of the Trust.

2. Summary of Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses for the period. Actual results could differ from those estimates.

2004 Annual Report 155

Notes to Financial Statements (Continued)

October 31, 2004

(a) Security Valuation

Securities for which market quotations are readily available are valued at current market value as of “Valuation Time.” Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4 p.m. Eastern time). Equity securities are valued at the last quoted sale price or, if there is no sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees. Prices are taken from the primary market or exchange in which each security trades. Most securities listed on a foreign exchange to date have been valued at the last sale price at the close of the exchange on which the security is principally traded. Foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of such currencies against the U.S. Dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.

Debt and other Fixed income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service, the use of which has been approved by the Funds’ Board of Trustees. Short-term debt securities such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase are considered to be “short-term” and are valued at amortized cost which approximates market value.

Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Funds’ investment adviser or designee, are valued at fair value under procedures approved by the Trust’s Board of Trustees. The “Fair Value” of such securities is determined in good faith by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a “Fair Value” may include the following non-exclusive list of SEC acceptable methods: (i) a multiple of earnings, (ii) the discount from market value of a similar, freely traded security, (iii) the yield-to-maturity for debt issues, or (iv) a consolidation of the methods. The Gartmore Fair Value Committee considers a non-exclusive list of factors to arrive at the appropriate method of determining “Fair Value.” For example, fair value determinations are required for securities whose value is affected by a “significant” event that materially affects the value of a domestic or foreign security which occurs subsequent to the time of the close of the principal market on which such domestic or foreign security trades and before the Valuation Time (i.e., a “subsequent event”). Typically, this will involve events occurring after the close of a foreign market on which a security trades and before the next Valuation Time.

Beginning July 1, 2004, the Funds holding foreign equity securities (the “Foreign Equity Funds”) began to value foreign securities at fair value in the circumstances described below. Generally, trading in foreign securities markets is completed each day at various times prior to the Valuation Time. Due to the time differences between the closings of the relevant foreign securities exchanges and the Valuation Time for the Foreign Equity Funds, the Foreign Equity Funds will fair value their foreign investments when it is determined that the market quotations for the foreign investments either are not readily available or are unreliable and, therefore, do not represent fair value. When the fair value prices are utilized, these prices will attempt to reflect the impact of the U.S. financial markets’ perceptions and trading activities on the Foreign Equity Funds’ foreign investments since the last closing prices of the foreign investments were calculated on their primary foreign securities markets or exchanges. For these purposes, the Board of Trustees of the Trust has determined that movements in relevant indices or other appropriate market indicators, after the close of the foreign securities exchanges, may demonstrate that market quotations are unreliable, and may trigger fair value pricing for certain securities. Consequently, fair valuation of portfolio securities may occur on a daily basis. In determining fair value prices, the Trust utilizes data furnished by an independent pricing service (and that data draws upon, among other information, the market values of foreign investments). The fair value prices of portfolio securities generally will be used when it is determined that the use of such prices will have a material impact on the net asset value of a Foreign Equity Fund. When a Foreign Equity Fund uses fair value pricing, the values assigned to the Foreign Equity Fund’s foreign investments may not be the quoted or published prices of the investments on their primary markets or exchanges.

156 Annual Report 2004

(b) Repurchase Agreements

The Funds may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. Government obligations. The repurchase price generally equals the price paid by a Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Funds’ custodian or another qualified sub-custodian or in the Federal Reserve/ Treasury book-entry system in a pooled cash account. If the counterparty defaults and the fair value of the collateral declines, realization of the collateral by the Funds may be delayed or limited.

(c) Foreign Currency Transactions

The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies.

(d) Risks Associated with Foreign Securities and Currencies

Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries.

Certain countries may also impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers of industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and a high price volatility with respect to securities of issuers from developing countries.

(e) Forward Foreign Currency Contracts

Certain Funds may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Funds could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. The forward foreign currency contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date.

(f) Futures Contracts

Certain Funds may invest in financial futures contracts (“futures contracts”) for the purpose of hedging their existing portfolio securities or securities they intend to purchase against fluctuations in value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes.

Upon entering into a futures contract, these Funds are required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin”, are made each day, depending on the daily fluctuations in the fair value/market value

2004 Annual Report 157

Notes to Financial Statements (Continued)

October 31, 2004

of the underlying assets. A gain or loss equal to the daily variation margin is recognized on a daily basis. Futures contracts are valued daily at their last quoted sale price.

A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future.

Should market conditions change unexpectedly, a Fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions for hedging purposes involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates, and the value/market value of the underlying hedged assets.

(g) Short Sales

During the period, the U.S. Growth Leaders Long-Short Fund and the Mid-Cap Growth Leaders Fund each engaged in short-selling of portfolio securities. Each of these funds is authorized to engage in short-selling of portfolio securities which obligates the Funds to replace any security that the Funds have borrowed by purchasing the security at current market value sometime in the future. The Fund will incur a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund generally will realize a gain if the price of the security declines between these dates. Until the Fund replaces the borrowed security, the Fund will maintain a segregated account with cash, U.S. government securities and/or securities held long to sufficiently cover the Fund’s short position on a daily basis. Dividends declared on securities sold short are recorded as an expense on the ex-dividend date and paid to the counterparty on the dividend pay date. The collateral for securities sold short includes the deposits with brokers and securities held long as shown in the Statement of Investments for each Fund.

(h) Securities Lending

To generate additional income, each of the Funds may lend up to 33^1/3% of the Fund’s total assets pursuant to agreements, requiring that the Fund receives cash or securities as collateral with respect to each loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each loan of non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned, and at all times thereafter requiring the borrower to mark to market the collateral on a daily basis so that the market value of the collateral does not fall below 100% of the market value of the portfolio securities loaned. The Funds receive payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of cash collateral. Collateral is marked to market daily to provide a level of collateral at least equal to the market value of securities lent. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Funds’ investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and therefore, are not considered to be illiquid investments. JPMorgan Chase Bank serves as custodian for the securities lending program of the Funds. JPMorgan Chase Bank receives a custody fee based on the value of collateral received from borrowers.

The cash collateral received by the Funds at October 31, 2004, was pooled and invested in the following:

Security Type	Security Name		Market Value		Maturity Rate		Maturity Date
Money Market Fund		JPM S/ L Collateral Investment	$	500,000		1.81%		11/01/04
Repurchase Agreement		Barclays Capital		25,260,501		1.91%		11/01/04

Information on the investment of cash collateral is shown in the Statement of Investments.

158 Annual Report 2004

As of October 31, 2004, the following Funds had securities with the following market values on loan:

	Market Value
	of Loaned		Market Value
Fund	Securities		of Collateral*
Global Health Sciences	$	761,830	$	779,449
Global Technology and Communications		862,380		889,381
Mid Cap Growth Leaders		686,700		711,475
U.S. Growth Leaders		2,926,617		2,999,835
Worldwide Leaders		1,282,918		1,346,411
Value Opportunities		5,769,743		5,895,220
Micro Cap Equity		12,656,142		13,138,730

*  Includes securities and cash collateral.

(i) Security Transactions and Investment Income

Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.

(j) Distributions to Shareholders

Net investment income, if any, is declared daily and paid monthly for the High Yield Bond Fund and is declared and paid quarterly for all other Funds. For all Funds, distributable net realized capital gains, if any, are declared and distributed at least annually.

Dividends and distributions to shareholders are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are considered either permanent or temporary in nature. In accordance with AICPA (American Institute of Certified Public Accountants) Statement of Position 93-2, permanent differences (i.e., reclassification of market discounts, gain/ loss, paydowns, and distributions) are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the net asset value of the respective Funds. To the extent distributions exceed current and accumulated earnings and profits for federal income tax purposes, these distributions are reported as distributions of paid-in-capital.

(k) Federal Income Taxes

It is the policy of each Fund to qualify or continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes.

(l) Allocation of Expenses, Income, and Gains and Losses

Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all Funds within the Trust. For the Equity Funds, the method for allocating income, fund level expenses, and realized and unrealized gains or losses is based on the fair value of shares outstanding relative to net assets. Under this method, each class of shares participates based on the total net asset value of that class’s shares in proportion to the total net assets of the Fund. For the Bond Funds, the allocation method used is based on the fair value of settled shares outstanding. Under this method, earnings are allocated based on the fair value of settled shares. Expenses specific to a class (such are 12b-1 and administrative services fees) are charged to that class.

(m) Capital Share Transactions

Transactions in capital shares of the Funds were as follows:

2004 Annual Report 159

Notes to Financial Statements (Continued)

October 31, 2004

														Global Natural
		Global Financial Services						Global Health Sciences						Resources (a)
		Year Ended			Year Ended			Year Ended			Year Ended			Period Ended
		October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003			October 31, 2004
CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (b)	$	2,120,548		$	313,319		$	6,977,872		$	7,485,451		$	103,923
	Dividends reinvested		133,277			1,596			274,185			—			87
	Cost of shares redeemed		(1,097,974	)		(5,210	)		(4,950,075	)		(5,461,856	)		—
			1,155,851			309,705			2,301,982			2,023,595			104,010
Class B Shares
	Proceeds from shares issued (b)		27,905			18,657			165,325			32,993			1,000
	Dividends reinvested		89,141			179			74,963			—			—
	Cost of shares redeemed		(8,388	)		(25	)		(27,500	)		(28,640	)		—
			108,658			18,811			212,788			4,353			1,000
Class C Shares
	Proceeds from shares issued (b)		70,192			6,957			2,138,361			83,191			6,000
	Dividends reinvested		86,070			177			11,366			—			—
	Cost of shares redeemed		(6,719	)		—			(74,108	)		(32,199	)		—
			149,543			7,134			2,075,619			50,992			6,000
Class R Shares
	Proceeds from shares issued (b)		1,000	(c)		—			1,000	(c)		—			1,000
	Dividends reinvested		6	(c)		—			—			—			—
			1,006			—			1,000			—			1,000
Institutional Service Class Shares
	Proceeds from shares issued (b)		119			—			5,333,588			3,997,278			1,000
	Dividends reinvested		93,480			2,031			300,573			—			2
	Cost of shares redeemed		—			—			(4,200,651	)		(2,081,498	)		—
			93,599			2,031			1,433,510			1,915,780			1,002
Institutional Class Shares
	Proceeds from shares issued (b)		707,404	(a)		—			452,027	(a)		—			3,000,000
	Dividends reinvested		1,601	(a)		—			—			—			5,728
	Cost of shares redeemed		(52,182	) (a)		—			(19,432	) (a)		—			—
			656,823			—			432,595			—			3,005,728
Change in net assets from capital transactions		$	2,165,480		$	337,681		$	6,457,494		$	3,994,720		$	3,118,740
SHARE TRANSACTIONS:
Class A Shares
	Issued		171,290			28,759			656,551			799,381			9,549
	Reinvested		11,537			178			27,255			—			8
	Redeemed		(90,241	)		(574	)		(470,608	)		(585,715	)		—
			92,586			28,363			213,198			213,666			9,557
Class B Shares
	Issued		2,283			1,847			15,742			3,297			100
	Reinvested		7,867			20			7,603			—			—
	Redeemed		(695	)		(3	)		(2,656	)		(2,876	)		—
			9,455			1,864			20,689			421			100
Class C Shares
	Issued		5,711			672			207,003			9,042			546
	Reinvested		7,596			20			1,153			—			—
	Redeemed		(574	)		—			(7,242	)		(3,233	)		—
			12,733			692			200,914			5,809			546
Class R Shares
	Issued		88	(c)		—			100	(c)		—			100
			88			—			100			—			100
Institutional Service Class Shares
	Issued		—			—			490,765			414,766			100
	Reinvested		8,061			226			29,613			—			—
	Redeemed		—			—			(391,931	)		(219,947	)		—
			8,061			226			128,447			194,819			100
Institutional Class Shares
	Issued		57,838	(a)		—			41,764	(a)		—			300,001
	Reinvested		130	(a)		—			—			—			525
	Redeemed		(4,229	) (a)		—			(1,899	) (a)		—			—
			53,739			—			39,865			—			300,526
Total change in shares			176,662			31,145			603,213			414,715			310,929

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Amount includes redemption fees, if any.
(c)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.

160 Annual Report 2004

		Global Technology and Communications						Global Utilities
		Year Ended			Year Ended			Year Ended			Year Ended
		October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003
CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (b)	$	2,570,801		$	4,342,520		$	324,651		$	98,663
	Dividends reinvested		—			—			3,218			3,978
	Cost of shares redeemed		(2,542,220	)		(3,448,988	)		(104,532	)		(2,073	)
			28,581			893,532			223,337			100,568
Class B Shares
	Proceeds from shares issued (b)		39,198			101,745			60,112			—
	Dividends reinvested		—			—			461			2,128
	Cost of shares redeemed		(57,189	)		(50,117	)		(1,000	)		—
			(17,991	)		51,628			59,573			2,128
Class C Shares
	Proceeds from shares issued (b)		63,326			18,314			2,928,501			1,495
	Dividends reinvested		—			—			1,393			2,116
	Cost of shares redeemed		(16,426	)		(4,819	)		(515,979	)		—
			46,900			13,495			2,413,915			3,611
Class R Shares
	Proceeds from shares issued (b)		1,000	(c)		—			1,000	(c)		—
	Dividends reinvested		—			—			3	(c)		—
			1,000			—			1,003			—
Institutional Service Class Shares
	Proceeds from shares issued (b)		7,786,911			8,252,349			16			—
	Dividends reinvested		—			—			3,949			4,846
	Cost of shares redeemed		(7,813,268	)		(4,876,893	)		—			—
			(26,357	)		3,375,456			3,965			4,846
Institutional Class Shares
	Proceeds from shares issued (b)		271,151	(a)		—			254,404	(a)		—
	Dividends reinvested		—			—			557	(a)		—
	Cost of shares redeemed		(27,375	) (a)		—			(32,826	) (a)		—
			243,776			—			222,135			—
Change in net assets from capital transactions		$	275,909		$	4,334,111		$	2,923,928		$	111,153
SHARE TRANSACTIONS:
Class A Shares
	Issued		667,050			1,392,736			32,008			12,398
	Reinvested		—			—			324			532
	Redeemed		(671,531	)		(1,112,232	)		(11,504	)		(287	)
			(4,481	)		280,504			20,828			12,643
Class B Shares
	Issued		10,466			32,977			6,405			—
	Reinvested		—			—			48			291
	Redeemed		(15,646	)		(17,304	)		(109	)		—
			(5,180	)		15,673			6,344			291
Class C Shares
	Issued		16,917			5,484			307,736			186
	Reinvested		—			—			143			288
	Redeemed		(4,276	)		(1,637	)		(52,626	)		—
			12,641			3,847			255,253			474
Class R Shares
	Issued		270	(c)		—			110	(c)		—
			270			—			110			—
Institutional Service Class Shares
	Issued		2,042,497			2,571,315			—			—
	Reinvested		—			—			396			642
	Redeemed		(2,100,008	)		(1,610,817	)		—			—
			(57,511	)		960,498			396			642
Institutional Class Shares
	Issued		72,478	(a)		—			25,982	(a)		—
	Reinvested		—			—			55	(a)		—
	Redeemed		(7,801	) (a)		—			(3,152	) (a)		—
			64,677			—			22,885			—
Total change in shares			10,416			1,260,522			305,816			14,050

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Amount includes redemption fees, if any.
(c)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.

2004 Annual Report 161

Notes to Financial Statements (Continued)

October 31, 2004

		Mid Cap Growth Leaders						Nationwide Leaders
		Year Ended			Year Ended			Year Ended			Year Ended
		October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003
CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (a)	$	1,770,984		$	1,603,294		$	354,697		$	433,216
	Dividends reinvested		—			—			—			3,461
	Cost of shares redeemed		(2,551,054	)		(1,611,955	)		(378,856	)		(173,715	)
			(780,070	)		(8,661	)		(24,159	)		262,962
Class B Shares
	Proceeds from shares issued (a)		271,598			339,761			46,866			45,257
	Dividends reinvested		—			—			—			477
	Cost of shares redeemed		(619,738	)		(593,692	)		(20,483	)		(75,245	)
			(348,140	)		(253,931	)		26,383			(29,511	)
Class C Shares
	Proceeds from shares issued (a)		22,951			8,693			30,791			59,739
	Dividends reinvested		—			—			2			368
	Cost of shares redeemed		(16,234	)		(906	)		(17,259	)		(10	)
			6,717			7,787			13,534			60,097
Class D Shares
	Proceeds from shares issued (a)		951,537			811,275			—			—
	Cost of shares redeemed		(2,060,020	)		(2,325,344	)		—			—
			(1,108,483	)		(1,514,069	)		—			—
Class R Shares
	Proceeds from shares issued (a)		1,000	(c)		—			—			1,000	(b)
			1,000			—			—			1,000
Institutional Service Class Shares
	Proceeds from shares issued (a)		—			—			3,536,833			1,879,229
	Dividends reinvested		—			—			—			3,660
	Cost of shares redeemed		—			—			(2,731,189	)		(1,462,724	)
			—			—			805,644			420,165
Institutional Class Shares
	Proceeds from shares issued (a)		1,000	(d)		—			1,000	(e)		—
			1,000			—			1,000			—
Change in net assets from capital transactions		$	(2,227,976	)	$	(1,768,874	)	$	822,402		$	714,713
SHARE TRANSACTIONS:
Class A Shares
	Issued		155,883			169,605			29,076			42,084
	Issued in connection with merger		—			—			—			—
	Reinvested		—			—			—			368
	Redeemed		(225,143	)		(173,645	)		(32,354	)		(18,160	)
			(69,260	)		(4,040	)		(3,278	)		24,292
Class B Shares
	Issued		25,682			39,893			3,985			4,730
	Reinvested		—			—			—			51
	Redeemed		(58,766	)		(71,353	)		(1,767	)		(7,481	)
			(33,084	)		(31,460	)		2,218			(2,700	)
Class C Shares
	Issued		2,138			1,056			2,566			5,840
	Reinvested		—			—			—			40
	Redeemed		(1,518	)		(100	)		(1,531	)		(1	)
			620			956			1,035			5,879
Class D Shares
	Issued		81,455			84,823			—			—
	Reinvested		—			—			—			—
	Redeemed		(179,984	)		(245,490	)		—			—
			(98,529	)		(160,667	)		—			—
Class R Shares
	Issued		87	(c)		—			—			91	(b)
			87			—			—			91
Institutional Service Class Shares
	Issued		—			—			294,832			185,593
	Reinvested		—			—			—			388
	Redeemed		—			—			(227,885	)		(145,937	)
			—			—			66,947			40,044
Institutional Class Shares
	Issued		89	(d)		—			82	(e)		—
			89						82
Total change in shares			(200,077	)		(195,211	)		67,004			67,606

(a)	Amount includes redemption fees, if any.
(b)	For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(c)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.
(d)	For the period from September 28, 2004 (commencement of operations) through October 31, 2004.
(e)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

162 Annual Report 2004

		U.S. Growth Leaders						Worldwide Leaders
		Year Ended			Year Ended			Year Ended			Year Ended
		October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003
CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (a)	$	19,925,366		$	6,936,056		$	2,010,399		$	6,147,549
	Proceeds from shares issued in connection with merger		—			—			—			31,318,617
	Cost of shares redeemed		(7,735,866	)		(1,060,629	)		(8,476,526	)		(9,640,424	)
			12,189,500			5,875,427			(6,466,127	)		27,825,742
Class B Shares
	Proceeds from shares issued (a)		900,558			912,810			29,165			37,766
	Cost of shares redeemed		(414,447	)		(104,738	)		(10,448	)		(998,210	)
			486,111			808,072			18,717			(960,444	)
Class C Shares
	Proceeds from shares issued (a)		2,914,899			1,442,894			5,300			296
	Cost of shares redeemed		(595,773	)		(94,121	)		(587	)		(4,172	)
			2,319,126			1,348,773			4,713			(3,876	)
Class R Shares
	Proceeds from shares issued (a)		—			1,000	(b)		—			1,000	(b)
			—			1,000			—			1,000
Institutional Service Class Shares
	Proceeds from shares issued (a)		7,443,652			10,066,128			2,362,333			2,139,626
	Cost of shares redeemed		(7,128,734	)		(5,489,020	)		(2,469,063	)		(2,072,835	)
			314,918			4,577,108			(106,730	)		66,791
Institutional Class Shares
	Proceeds from shares issued (a)		252,268	(c)		—			1,000	(c)		—
	Cost of shares redeemed		(18,027	)  (c)		—			—			—
			234,241			—			1,000
Change in net assets from capital transactions		$	15,543,896		$	12,610,380		$	(6,548,427	)	$	26,929,213
SHARE TRANSACTIONS:
Class A Shares
	Issued		2,389,900			964,028			277,674			1,028,937
	Issued in connection with merger		—			—			—			5,321,680
	Redeemed		(944,347	)		(151,289	)		(1,170,017	)		(1,563,239	)
			1,445,553			812,739			(892,343	)		4,787,378
Class B Shares
	Issued		112,068			135,874			4,158			7,747
	Redeemed		(51,717	)		(17,223	)		(1,433	)		(166,789	)
			60,351			118,651			2,725			(159,042	)
Class C Shares
	Issued		357,925			208,967			727			53
	Redeemed		(74,068	)		(13,043	)		(80	)		(710	)
			283,857			195,924			647			(657	)
Class R Shares
	Issued		—			134	(b)		—			153	(b)
			—			134			—			153
Institutional Service Class Shares
	Issued		878,553			1,488,021			324,332			338,940
	Redeemed		(852,335	)		(852,214	)		(341,204	)		(345,851	)
			26,218			635,807			(16,872	)		(6,911	)
Institutional Class Shares
	Issued		29,370	(c)		—			138	(c)		—
	Redeemed		(2,170	)  (c)		—			—			—
			27,200						138
Total change in shares			1,843,179			1,763,255			(905,705	)		4,620,921

(a)	Amount includes redemption fees, if any.
(b)	For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(c)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.

2004 Annual Report 163

Notes to Financial Statements (Continued)

October 31, 2004

		China Opportunities		Emerging Markets						International Growth
		Period Ended		Year Ended			Year Ended			Year Ended			Year Ended
		October 31, 2004 (a)		October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003
CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (b)	$	972,446	$	21,100,437		$	20,248,675		$	1,251,219		$	7,760,900
	Dividends reinvested		1,204		40,819			—			—			—
	Cost of shares redeemed		—		(17,474,697	)		(15,372,126	)		(1,047,248	)		(7,765,342	)
			973,650		3,666,559			4,876,549			203,971			(4,442	)
Class B Shares
	Proceeds from shares issued (b)		18,290		612,196			125,863			65,727			43,830
	Dividends reinvested		5		3,397			—			—			—
	Cost of shares redeemed		—		(52,390	)		(281,246	)		(11,557	)		(7,305	)
			18,295		563,203			(155,383	)		54,170			36,525
Class C Shares
	Proceeds from shares issued (b)		37,312		3,051,586			1,302,297			94,470			2,468
	Dividends reinvested		—		923			—			—			—
	Cost of shares redeemed		—		(2,188,175	)		(866	)		(5,063	)		—
			37,312		864,334			1,301,431			89,407			2,468
Class R Shares
	Proceeds from shares issued (b)		1,000		1,003	(c)		—			1,001	(c)		—
	Dividends reinvested		1		3	(c)		—			—			—
			1,001		1,006			—			1,001			—
Institutional Service Class Shares
	Proceeds from shares issued (b)		1,000		1,717,456			170			13,535			10,054
	Dividends reinvested		2		16,749			—			—			—
	Cost of shares redeemed		—		(9,154	)		—			—			—
			1,002		1,725,051			170			13,535			10,054
Institutional Class Shares
	Proceeds from shares issued (b)		4,999,850		240,552	(a)		—			199,054	(a)		—
	Dividends reinvested		11,472		831			—			—			—
	Cost of shares redeemed		—		(27,560	) (a)		—			(19,173	) (a)		—
			5,011,322		213,823			—			179,881			—
Change in net assets from capital transactions		$	6,042,582	$	7,033,976		$	6,022,767		$	541,965		$	44,605
SHARE TRANSACTIONS:
Class A Shares
	Issued		91,381		1,761,117			2,506,014			165,100			1,360,357
	Reinvested		112		3,445			—			—			—
	Redeemed		—		(1,492,739	)		(1,939,080	)		(138,962	)		(1,354,133	)
			91,493		271,823			566,934			26,138			6,224
Class B Shares
	Issued		1,700		51,884			16,278			7,114			5,129
	Reinvested		—		289			—			—			—
	Redeemed		—		(4,650	)		(36,740	)		(1,521	)		(1,271	)
			1,700		47,523			(20,462	)		5,593			3,858
Class C Shares
	Issued		3,395		251,795			131,404			13,049			459
	Reinvested		—		78			—			—			—
	Redeemed		—		(202,776	)		(95	)		(692	)		—
			3,395		49,097			131,309			12,357			459
Class R Shares
	Issued		100		89	(c)		—			138	(c)		—
			100		89			—			138			—
Institutional Service Class Shares
	Issued		500,000		132,149			—			—			—
	Reinvested		1,062		1,399			—			—			—
			501,062		133,548			—			—			—
Institutional Class Shares
	Issued		100		21,217	(a)		—			26,463	(a)		—
	Reinvested		—		68	(a)		—			—			—
	Redeemed		—		(2,294	) (a)		—			(2,480	) (a)		—
			100		18,991			—			23,983			—
Total change in shares			597,850		521,071			677,781			68,209			10,541

(a)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(b)	Amount includes redemption fees, if any.
(c)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.

164 Annual Report 2004

		High Yield Bond						Value Opportunities						Micro Cap Equity
		Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
		October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003			October 31, 2004			October 31, 2003
CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (a)	$	14,289,113		$	20,150,839		$	6,571,082		$	3,846,532		$	87,603,317		$	15,652,025
	Dividends reinvested		263,908			262,786			8,924			27,722			4,741			—
	Cost of shares redeemed		(14,716,542	)		(18,892,092	)		(7,634,809	)		(4,341,259	)		(34,687,906	)		(343,521	)
			(163,521	)		1,521,533			(1,054,803	)		(467,005	)		52,920,152			15,308,504
Class B Shares
	Proceeds from shares issued (a)		133,684			544,178			152,412			275,847			5,089,914			1,396,507
	Dividends reinvested		15,008			21,301			—			458			354			—
	Cost of shares redeemed		(203,299	)		(229,910	)		(421,794	)		(660,706	)		(901,253	)		(55,546	)
			(54,607	)		335,569			(269,382	)		(384,401	)		4,189,015			1,340,961
Class C Shares
	Proceeds from shares issued (a)		752,245			2,818,010			376,871			189,360			27,633,405			5,118,281
	Dividends reinvested		15,729			7,868			—			18			994			—
	Cost of shares redeemed		(1,962,402	)		(13,918	)		(101,083	)		(26,002	)		(5,120,062	)		(158,950	)
			(1,194,428	)		2,811,960			275,788			163,376			22,514,337			4,959,331
Class R Shares
	Proceeds from shares issued (a)		1,000	(b)		—			1,000	(d)		—			1,001	(d)		—
	Dividends reinvested		40	(b)		—			—			—			—			—
			1,040			—			1,000			—			1,001			—
Institutional Service Class Shares
	Proceeds from shares issued (a)		17,216,382			7,393,568			12,107,929			11,944,248			50,384			11
	Dividends reinvested		6,331,095			8,460,523			24,708			43,596			7			—
	Cost of shares redeemed		(110,840,689	)		(5,515,173	)		(19,491,929	)		(5,544,469	)		(97,410	)		—
			(87,293,212	)		10,338,918			(7,359,292	)		6,443,375			(47,019	)		11
Institutional Class Shares
	Proceeds from shares issued (a)		1,000	(c)		—			1,000	(c)		—			3,377,757			412
	Dividends reinvested		20	(c)		—			—			—			506
	Cost of shares redeemed		—			—			—			—			(3,561,854	)
			1,020			—			1,000			—			(183,591	)		412
Change in net assets from capital transactions		$	(88,703,708	)	$	15,007,980		$	(8,405,689	)	$	5,755,345		$	79,393,895		$	21,609,219
SHARE TRANSACTIONS:
Class A Shares
	Issued		2,042,569			3,035,167			406,198			323,886			4,677,213			1,058,159
	Reinvested		37,914			40,181			563			2,416			251			—
	Redeemed		(2,097,436	)		(2,824,204	)		(482,133	)		(370,127	)		(1,914,311	)		(24,274	)
			(16,953	)		251,144			(75,372	)		(43,825	)		2,763,153			1,033,885
Class B Shares
	Issued		19,331			83,397			9,831			23,221			280,168			100,860
	Reinvested		2,163			3,290			—			41			19			—
	Redeemed		(28,884	)		(34,834	)		(27,202	)		(53,894	)		(49,310	)		(3,518	)
			(7,390	)		51,853			(17,371	)		(30,632	)		230,877			97,342
Class C Shares
	Issued		107,259			426,195			24,277			13,971			1,513,352			362,018
	Reinvested		2,263			1,208			—			2			54			—
	Redeemed		(284,276	)		(2,105	)		(6,770	)		(2,175	)		(290,066	)		(11,148	)
			(174,754	)		425,298			17,507			11,798			1,223,340			350,870
Class R Shares
	Issued		143	(b)		—			65	(d)		—			58	(d)		—
	Reinvested		6	(b)		—			—			—			—			—
			149			—			65			—			58			—
Institutional Service Class Shares
	Issued		2,439,580			1,103,878			761,883			931,522			2,528			—
	Reinvested		902,593			1,295,824			1,571			3,747			—			—
	Redeemed		(16,159,153	)		(816,958	)		(1,229,044	)		(438,518	)		(4,949	)		—
			(12,816,980	)		1,582,744			(465,590	)		496,751			(2,421	)		—
Institutional Class Shares
	Issued		145	(c)		—			62	(c)		—			178,566			—
	Reinvested		3	(c)		—			—			—			27			—
	Redeemed		—			—			—			—			(180,985	)		—
			148			—			62			—			(2,392	)		—
Total change in shares			(13,015,780	)		2,311,039			(540,699	)		434,092			4,212,615			1,482,097

(a)	Amount includes redemption fees, if any.
(b)	For the period from February 27, 2004 (commencement of operations) through October 31, 2004.
(c)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(d)	For the period from December 30, 2003 (commencement of operations) through October 31, 2004.

2004 Annual Report 165

Notes to Financial Statements (Continued)

October 31, 2004

		U.S. Growth Leaders Long-Short									Convertible			Small Cap Growth
		Year Ended			Period Ended			Year Ended			Period Ended			Period Ended
		October 31, 2004			October 31, 2003 (g)			June 30, 2003			October 31, 2004			October 31, 2004 (d)
CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (h)	$	4,499,603		$	726,070		$	732,628		$	3,480,288	(e)	$	13,629
	Proceeds from shares issued in connection with Class R Shares merger		—			—			29,933,725			—			—
	Dividends reinvested		5,979,998			—						21,236	(e)		—
	Cost of shares redeemed		(10,248,730	)		(3,540,842	)		(617,921	)		(480,135	) (e)		—
			230,871			(2,814,772	)		30,048,432			3,021,389			13,629
Class B Shares
	Proceeds from shares issued (h)		446,346			257,253			64,983			214,625	(e)		12,740
	Dividends reinvested		1,465			—			—			85	(e)		—
	Cost of shares redeemed		(128,952	)		—			(42,167	)		(3,911	) (e)		—
			318,859			257,253			22,816			210,799			12,740
Class C Shares
	Proceeds from shares issued (h)		1,933,492			216,954			7,161			3,337,486	(e)		40,782
	Dividends reinvested		44,874			—			—			2,057	(e)		—
	Cost of shares redeemed		(438,533	)		(180,203	)		(475,697	)		(86,362	) (e)		55
			1,539,833			36,751			(468,536	)		3,253,181			40,837
Class R Shares
	Proceeds from shares issued (h)		1,000	(a)		—			4,709,596	(j			) 1,000  (f)		1,000
	Dividends reinvested		—			—			—			9	(f)		—
	Cost of shares redeemed		—			—			(14,736,279	)(j			) —		—
	Shares redeemed in connection with Class R Shares merger		—			—			(29,933,725	)(j			) —		—
			1,000			—			(39,960,408	)		1,009			1,000
Institutional Service Class Shares
	Proceeds from shares issued (h)		—			—			—			316,000	(e)		1,000
	Dividends reinvested		—			—			—			1,161	(e)		—
						—			—			317,161			1,000
Institutional Class Shares
	Proceeds from shares issued (h)		343,762	(b)		—			—			30,065,920	(c)		2,995,383
	Dividends reinvested		—			—			—			290,722	(c)		—
	Cost of shares redeemed		(22,811	) (b)		—			—			(1,581,378	) (c)		(55	)
			320,951			—			—			28,775,264			2,995,328
Class ML Shares (i)
	Redeemed		—			—			(4,293,880	)		—			—
			—			—			(4,293,880	)		—			—
Change in net assets from capital transactions		$	2,411,514		$	(2,520,768	)	$	(14,651,576	)	$	35,578,803		$	3,064,534
SHARE TRANSACTIONS:
Class A Shares
	Issued		480,510			62,860			69,841			352,634	(e)		1,532
	Shares issued in connection with Class R Shares merger		—			—			2,675,377			—			—
	Reinvested		663,707			—			—			2,159	(e)		—
	Redeemed		(1,045,702	)		(308,151	)		(57,727	)		(49,380	) (e)		—
			98,515			(245,291	)		2,687,491			305,413			1,532
Class B Shares
	Issued		48,887			21,813			5,911			21,990	(e)		1,384
	Reinvested		165			—			—			9	(e)		—
	Redeemed		(14,223	)		—			(4,003	)		(402	) (e)		—
			34,829			21,813			1,908			21,597			1,384
Class C Shares
	Issued		270,981			22,939			794			342,677	(e)		4,391
	Reinvested		6,560			—			—			210	(e)		—
	Redeemed		(61,807	)		(18,936	)		(55,239	)		(8,840	) (e)		—
			215,734			4,003			(54,445	)		334,047			4,391
Class R Shares
	Issued		109	(a)		—			468,242	(j)		104	(f)		100
	Reinvested		—			—			—			1	(f)		—
	Redeemed		—			—			(1,455,328	) (		j	) —		—
	Shares redeemed in connection with Class R Shares merger		—			—			(2,667,622	) (		j	) —		—
			109			—			(3,654,708	)		105			100
Institutional Service Class Shares
	Issued		—			—			—			31,738	(e)		100
	Reinvested		—			—			—			118	(e)		—
			—			—			—			31,856			100
Institutional Class Shares
	Issued		36,989	(b)		—			—			3,026,263			299,500
	Reinvested		—			—			—			29,579			—
	Redeemed		(2,408	) (b)		—			—			(161,290	)		—
			34,581			—			—			2,894,552			299,500
Class ML Shares (i)
	Redeemed		—			—			(455,374	)		—			—
			—			—			(455,374	)		—			—
Total change in shares			383,768			(219,475	)		(1,475,128	)		3,587,570			307,007

(a)	For the period from February 27, 2004 (commencement of operations) through October 31, 2004.
(b)	For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(c)	For the period from December 29, 2003 (commencement of operations) through October 31, 2004.
(d)	For the period March 30, 2004 (commencement of operations) through October 31, 2004.
(e)	For the period from January 20, 2004 (commencement of operations) through October 31, 2004.
(f)	For the period from May 14, 2004 (commencement of operations) through October 31, 2004.
(g)	For the period from July 1, 2003 (commencement of operations) through October 31, 2003.
(h)	Amount includes redemption fees, if any.
(i)	Class R shares were issued in exchange for Class ML shares on October 31, 2002.
(j)	In conjunction with the Fund reorganization, R shares merged into Class A shares.

166 Annual Report 2004

3. Transactions with Affiliates

Under the terms of the Trust’s Investment Advisory Agreements, Gartmore Global Asset Management Trust (“GGAMT”) or Gartmore Mutual Fund Capital Trust (“GMF”) manages the investment of the assets and supervises the daily business affairs of their respective Funds (as shown in table below). GMF is a wholly-owned subsidiary of Gartmore Global Investments, Inc. (“GGI”), a holding company. GGI is a majority-owned subsidiary of GGAMT. GGAMT is a wholly-owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders. In addition, GMF and GGAMT each provide investment management evaluation services in initially selecting and monitoring on an ongoing basis the performance of the subadvisers, if applicable, for the Funds GMF or GGAMT advise. The subadvisers manage each of their respective Fund’s investments and have the responsibility for making all investment decisions for the applicable Funds. The adviser and subadviser, if applicable, for each Fund is as follows:

Fund	Adviser		SubAdviser
Global Financial Services		GGAMT		Gartmore Global Partners (a)
Global Health Sciences		GMF		n/a
Global Natural Resources		GMF		Gartmore Global Partners (a)
Global Technology and Communications		GMF		n/a
Global Utilities		GGAMT		Gartmore Global Partners (a)
Mid Cap Growth Leaders		GMF		n/a
Nationwide Leaders		GMF		n/a
U.S. Growth Leaders		GMF		n/a
Worldwide Leaders		GGAMT		Gartmore Global Partners (a)
China Opportunities		GMF		Gartmore Global Partners (a)
Emerging Markets		GGAMT		Gartmore Global Partners (a)
International Growth		GGAMT		Gartmore Global Partners (a)
High Yield Bond		GMF		n/a
Value Opportunities		GMF		NorthPointe Capital, LLC (a)
Micro Cap Equity		GMF		n/a
U.S. Growth Leaders Long-Short		GMF		n/a
Convertible		GMF		n/a
Small Cap Growth		GMF		n/a

(a) Affiliate of GMF and GGAMT.

Under the terms of the Investment Advisory Agreements, each Fund pays its respective adviser an investment advisory fee based on that Fund’s average daily net assets. From such fees, pursuant to the subadvisory agreements, the adviser pays fees to the applicable subadviser, if any. Additional information regarding the investment advisory fees and subadvisory fees for GGAMT, GMF and the subadvisers, where applicable, is as follows for the year ended October 31, 2004:

		Total		Fees		Paid to
Fund	Fee Schedule	Fees		Retained		Subadviser
Global Financial Services (a)	Up to $500 million		0.90%		0.45%		0.45%
	$500 million up to $2 billion		0.85%		0.425%		0.425%
	On $2 billion and more		0.80%		0.40%		0.40%
Global Health Sciences (b)	Up to $500 million		0.90%		0.90%		—
	$500 million up to $2 billion		0.85%		0.85%		—
	On $2 billion and more		0.80%		0.80%		—
Global Natural Resources	Up to $500 million		0.90%		0.45%		0.45%
	$500 million up to $2 billion		0.85%		0.425%		0.425%
	On $2 billion and more		0.80%		0.40%		0.40%

2004 Annual Report 167

Notes to Financial Statements (Continued)

October 31, 2004

		Total		Fees		Paid to
Fund	Fee Schedule	Fees		Retained		Subadviser
Global Technology and Communications (c)	Up to $500 million		0.88%		0.88%		—
	$500 million up to $2 billion		0.83%		0.83%		—
	On $2 billion and more		0.78%		0.78%		—
Global Utilities (d)	Up to $500 million		0.70%		0.35%		0.35%
	$500 million up to $2 billion		0.65%		0.325%		0.325%
	On $2 billion and more		0.60%		0.30%		0.30%
Mid Cap Growth Leaders (e)	Up to $250 million		0.80%		0.80%		—
	$250 million up to $1 billion		0.77%		0.77%		—
	$1 billion up to $2 billion		0.74%		0.74%		—
	$2 billion up to $5 billion		0.71%		0.71%		—
	On $5 billion and more		0.68%		0.68%		—
Nationwide Leaders (f)	Up to $500 million		0.80%		0.80%		—
	$500 million up to $2 billion		0.70%		0.70%		—
	On $2 billion and more		0.65%		0.65%		—
U.S. Growth Leaders (1)	Up to $500 million		0.90%		0.90%		—
	$500 million up to $2 billion		0.80%		0.80%		—
	On $2 billion and more		0.75%		0.75%		—
Worldwide Leaders (g)	Up to $500 million		0.90%		0.45%		0.45%
	$500 million up to $2 billion		0.85%		0.425%		0.425%
	On $2 billion and more		0.80%		0.40%		0.40%
China Opportunities	Up to $500 million		1.25%		0.625%		0.625%
	$500 million up to $2 billion		1.20%		0.60%		0.60%
	On $2 billion and more		1.15%		0.575%		0.575%
Emerging Markets (h)	Up to $500 million		1.05%		0.525%		0.525%
	$500 million up to $2 billion		1.00%		0.500%		0.500%
	On $2 billion and more		0.95%		0.475%		0.475%
International Growth (i)	Up to $500 million		0.90%		0.45%		0.45%
	$500 million up to $2 billion		0.85%		0.425%		0.425%
	On $2 billion and more		0.80%		0.40%		0.40%
High Yield Bond	Up to $250 million		0.55%		0.55%		—
	On the next $750 million		0.525%		0.525%		—
	On the next $1 billion		0.50%		0.50%		—
	On the next $3 billion		0.475%		0.475%		—
	On $5 billion and more		0.45%		0.45%		—
Value Opportunities	Up to $250 million		0.70%		—		0.70%
	On the next $750 million		0.675%		—		0.675%
	On the next $1 billion		0.65%		—		0.65%
	On the next $3 billion		0.625%		—		0.625%
	On $5 billion and more		0.60%		—		0.60%
Micro Cap Equity	All Assets		1.25%		1.25%		—
U.S. Growth Leaders Long-Short	Up to $50 million		1.50%		0.50%		1.00%
	On the next $200 million		1.50%		0.75%		0.75%
	On $250 million and more		1.25%		0.50%		0.75%
Convertible	Up to $500 million		0.65%		0.65%		—
	$500 million up to $1 billion		0.60%		0.60%		—
	On $1 billion and more		0.55%		0.55%		—
Small Cap Growth	All Assets		0.95%		0.95%		—

(a)	From March 1, 2004 to June 30, 2004, the advisory fee was 1.00% on assets up to $500 million, 0.95% on the next $500 million, and 0.90% on the assets over $2 billion. Prior to March 1, 2004, the advisory fee was 1.00% on all asset levels.
(b)	From March 1, 2004 to June 30, 2004, the advisory fee was 1.00% on assets up to $500 million, 0.95% on the next $500 million, and 0.90% on the assets over $2 billion. Prior to March 1, 2004, the advisory fee was 1.00% on all asset levels.
(c)	From March 1, 2004 to June 30, 2004, the advisory fee was 0.98% on assets up to $500 million, 0.93% on the next $500 million, and 0.88% on the assets over $2 billion. Prior to March 1, 2004, the advisory fee was 0.98% on all asset levels.
(d)	From March 1, 2004 to June 30, 2004, the advisory fee was 0.80% on assets up to $500 million, 0.75% on the next $500 million, and 0.70% on the assets over $2 billion. Prior to March 1, 2004, the advisory fee was 0.80% on all asset levels.

168 Annual Report 2004

(e)	Prior to March 1, 2004, the advisory fee was 1.03% on assets up to $250 million and 1.00% on the next $750 million and 0.97% on the next $1 billion and 0.94% on the next $3 billion and 0.91% on assets of $5 billion and more.
(f)	Prior to July 1, 2004, the advisory fee was 0.80% on assets up to $500 million and 0.75% on the next $500 million and 0.70% on the assets over $2 billion.
(g)	From March 1, 2004 to June 30, 2004, the advisory fee was 1.00% on assets up to $500 million, 0.95% on the next $500 million, and 0.90% on the assets over $2 billion. Prior to March 1, 2004, the advisory fee was 1.00% on all asset levels.
(h)	From March 1, 2004 to June 30, 2004, the advisory fee was 1.15% on assets up to $500 million, 1.10% on the next $500 million, and 1.05% on the assets over $2 billion. Prior to March 1, 2004, the advisory fee was 1.15% on all asset levels.
(i)	From March 1, 2004 to June 30, 2004, the advisory fee was 1.00% on assets up to $500 million, 0.95% on the next $500 million, and 0.90% on the assets over $2 billion. Prior to March 1, 2004, the advisory fee was 1.00% on all asset levels.
(1)	The U.S. Growth Leaders Fund pays GMF a base management fee (as shown above) which may be adjusted upward or downward each quarter depending on the Fund’s performance relative to its benchmark. Thus, if the Fund outperforms its benchmark by 12% or more over a 36 month period, the Fund will pay higher management fees. Conversely, if the fund underperforms its benchmark by 12% or more over a 36 month period, the Fund will pay lower management fees. No adjustment will take place if the under or overperformance is less than 12% and GMF will receive the applicable base fee. The adjustment described above will be phased in over a 24 month period beginning after the first year of operations. The base fee is either increased or decreased by the following amounts at each breakpoint:

	Fee
Fee Schedule	Adjustment
Up to $500 million		+/- 0.22%
$500 million up to $2 billion		+/- 0.18%
On $2 billion and more		+/- 0.16%

On September 21, 2004, the Enforcement Staff of the Commission’s Fort Worth District Office (the “Staff”) contacted Gartmore Mutual Fund Capital Trust (the “Adviser”), the investment adviser to the Gartmore U.S. Growth Leaders Fund (the “Fund”), a series of Gartmore Mutual Funds (“GMF”). The Staff asserted that the methodology used to calculate the performance fee for the Fund did not comply with the requirements of Rule 205-2 under the Investment Advisers Act of 1940 (“Advisers Act”). The Adviser agreed temporarily to forego the collection of any performance fees pending an evaluation of the Staff’s assertion. Discussions with the Staff are ongoing, and the outcome of those discussions will determine the remedial steps, if any, to be taken.

GMF or GMCM, where applicable, and the Funds have entered into written contracts (“Expense Limitation Agreements”) limiting operating expenses (excluding any taxes, interest, brokerage fees, extraordinary expenses, short sale dividend expenses, Rule 12b-1 fees, and administrative services fees) from exceeding the amounts listed in the table below until February 28, 2005:

Fund	Expense Caps		Amount
Global Financial Services		All Classes		1.40%
Global Health Sciences		All Classes		1.25%
Global Natural Resources		All Classes		1.30%
Global Technology and Communications		All Classes		1.40%
Global Utilities		All Classes		1.20%
Mid Cap Growth Leaders		All Classes		1.20%
Nationwide Leaders		All Classes		1.20%
U.S. Growth Leaders		All Classes		1.30%
Worldwide Leaders		All Classes		1.40%
China Opportunities		All Classes		1.65%
Emerging Markets		All Classes		1.55%
International Growth		All Classes		1.40%
High Yield Bond		All Classes		0.70%
Value Opportunities		All Classes		1.00%
Micro Cap Equity		All Classes		1.55%
U.S. Growth Leaders Long-Short		All Classes		1.95%
Convertible		All Classes		0.95%
Small Cap Growth		All Classes		1.35%

GMF or GGAMT may request and receive reimbursement from a Fund of the advisory fees waived and other expenses reimbursed by GMF and GGAMT, respectively, pursuant to the Expense Limitation Agreements at a later date not to exceed (i) five fiscal years from commencement of operations or (ii) three years from the fiscal year in which the

2004 Annual Report 169

Notes to Financial Statements (Continued)

October 31, 2004

corresponding reimbursement to the Fund was made, depending on the Fund (as described below), if the Fund has reached a sufficient asset size to permit reimbursement to be made without causing the total annual operating expense ratio of the Fund to exceed the limits set forth above. No reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the Class making such reimbursement is less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Except as provided for in the Expense Limitation Agreements, reimbursement of amounts previously waived or assumed by GMF or GGAMT is not permitted. As of the year ended October 31, 2004, the cumulative potential reimbursements of the following Funds based on expenses reimbursed by GMF or GGAMT within five years from commencement of operations of the Fund would be:

Fund	Amount		Expires
Global Financial Services	$	133,863		December 18, 2006
Global Health Sciences		227,987		December 29, 2005
Global Technology and Communications		437,410		June 30, 2005
Global Utilities		141,897		December 18, 2006
Nationwide Leaders		157,383		December 28, 2006
U.S. Growth Leaders		376,982		June 30, 2005
Worldwide Leaders		278,538		August 30, 2005
Emerging Markets		270,436		August 30, 2005
International Growth		305,758		August 30, 2005
High Yield Bond		392,732		December 29, 2004
Value Opportunities		406,100		December 29, 2004
Micro Cap Equity		83,592		June 27, 2007

As of the year ended October 31, 2004, the cumulative potential reimbursements of the following Funds (unless otherwise indicated), based on reimbursements within three years from the fiscal year in which the corresponding reimbursement to the Fund was made for expenses reimbursed by GMF or GGAMT, would be:

	Amount		Amount
	Fiscal Year		Fiscal Year
Fund	2003		2004
Global Natural Resources	$	—	$	21,945
Mid Cap Growth Leaders		82,484		98,160
China Opportunities		—		50,098
U.S. Growth Leaders Long-Short		—		14,723
Convertible		—		30,330
Small Cap Growth		—		53,910

Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act, Gartmore Distribution Services, Inc. (“GDSI”), the Funds’ distributor, is compensated by the Funds for expenses associated with the distribution of Class A, Class B, Class C, and Class R shares of the Funds. These fees are based on average daily net assets of the respective class of the Funds at an annual rate not to exceed 0.25% for Class A shares, 1.00% for Class B and Class C shares, and 0.50% for Class R shares.

Pursuant to an Underwriting Agreement, GDSI serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on the Class A, Class C (until April 1, 2004) and Class D shares. These fees are deducted from and are not included in proceeds from sales of Class A, Class C and Class D shares. From these fees, GDSI pays sales commissions, salaries, and other expenses in connection with generating new sales of Class A, Class C and Class D shares of the Funds. GDSI also receives fees for services as principal underwriter for Class B shares of the Funds. These fees are contingent deferred sales charges (“CDSCs”) ranging from 1% to 5% imposed on redemptions of Class B shares which may cause the current value of a shareholder’s account to fall below the total purchase payments. The CDSC, if applicable, will be imposed on redemptions made within six years of the purchase. In addition, Class C shares also have a CDSC of 1% imposed on redemptions of Class C shares

170 Annual Report 2004

made within one year of purchase. For the year ended October 31, 2004, GDSI received commissions of $968,520 from front-end sales charges of Class A, Class C and Class D shares and from CDSC fees from Class B and Class C shares of the Funds, of which $84,762 was reallowed to affiliated broker-dealers of the Funds.

The Funds assess a 2.00% redemption fee on all classes of shares that are purchased and are sold or exchanged within 90 days of purchase (within 30 days for the Nationwide Leaders and U.S. Growth Leaders Funds and within five days for the High Yield Bond and Convertible Funds). The redemption fee, if any, is paid directly to the applicable Fund and is designed to offset brokerage commissions, market impact and other costs associated with short-term trading of Fund shares. For purposes of determining whether the redemption fee applies, the shares that were held the longest will be redeemed first. This redemption fee is in addition to any CDSCs that may be applicable at the time of sale. The redemption fee may not apply in certain circumstances, such as redemptions or exchanges of shares held in certain omnibus accounts or retirement plans that cannot implement the redemption fee. The fee does not apply to shares purchased through reinvested dividends or capital gains.

For the year ended October 31, 2004, the following Funds had contributions to capital due to collection of redemption fees:

Fund	Amount
Emerging Markets	$	56,404
International Growth		11,890
Micro Cap Equity		89,426

Under the terms of a Fund Administration Agreement, Gartmore SA Capital Trust (“GSA”) provides various administrative and accounting services, and Gartmore Investors Services, Inc. (“GISI”), an indirect subsidiary of GSA, serves as Transfer Agent and Dividend Disbursing Agent for each of the Funds. The fees for the services provided under such agreement is calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees are then allocated proportionately among all Funds within the Trust in relation to the average daily net assets of each Fund and are paid to GSA. GSA pays GISI from these fees for GISI’s services.

Combined Fee Schedule*
Up to $1 billion	0.25%
$1 billion and more up to $3 billion	0.18%
$3 billion and more up to $4 billion	0.14%
$4 billion and more up to $5 billion	0.07%
$5 billion and more up to $10 billion	0.04%
$10 billion and more up to $12 billion	0.02%
$12 billion or more	0.01%

*  The assets of the Gartmore Investor Destinations Aggressive, Gartmore Investor Destinations Moderately Aggressive, Gartmore Investor Destinations Moderate, Gartmore Investor Destinations Moderately Conservative and Gartmore Investor Destinations Conservative Funds (collectively, the “Investor Destinations Funds”) and the Gartmore Optimal Allocations Fund: Aggressive, Gartmore Optimal Allocations Fund: Moderate, Gartmore Optimal Allocations Fund: Moderately Aggressive, and Gartmore Optimal Allocations Fund: Specialty (collectively, the “Optimal Funds”) are excluded from the Trust asset level amount in order to calculate this asset based fee. The Investor Destinations Funds and the Optimal Funds do not pay any part of this fee.

GSA and GISI have entered into agreements with BISYS Fund Services Ohio, Inc., to provide sub-administration and sub-transfer agency services, respectively, to the Funds.

Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, including Nationwide Financial Services, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquiries regarding the Funds; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of the Class A, Class D, Class R, and Institutional Service Class shares of each of the Funds.

2004 Annual Report 171

Notes to Financial Statements (Continued)

October 31, 2004

As of October 31, 2004 GMF, GGAMT or their affiliates directly held the percentage indicated below of the shares outstanding of the applicable Fund:

	% of
	Shares
	Outstanding
Fund	Owned
Global Financial Services	65%
Global Health Sciences	21%
Global Natural Resources	97%
Global Technology and Communications	22%
Global Utilities	49%
Nationwide Leaders	27%
China Opportunities	84%
Emerging Markets	27%
International Growth	89%
High Yield Bond	40%
Value Opportunities	100%
Small Cap Growth	98%

As a result of certain trading errors that occurred in August of 2004, the Mid Cap Growth Leaders Fund was reimbursed $14,628 by GMF to offset losses realized on the disposal of investments.

4. Bank Loans

The Trust has a credit agreement of $100,000,000. Borrowings under this arrangement bear interest at the Federal Funds rate plus 0.50%. The interest costs are included in custodian fees in the Statement of Operations. No compensation balances were required under the terms of the line of credit. There were no borrowings outstanding as of October 31, 2004.

172 Annual Report 2004

5. Investment Transactions

Purchases and sales of securities (excluding short-term securities) for the year ended October 31, 2004, are summarized as follows:

Fund	Purchases		Sales
Global Financial Services	$	8,599,796	$	6,916,273
Global Health Sciences		48,577,833		43,800,378
Global Natural Resources		4,467,577		1,525,732
Global Technology and Communications		67,865,114		68,714,224
Global Utilities		18,291,081		15,381,792
Mid Cap Growth Leaders		83,568,441		83,992,151
Nationwide Leaders		10,350,366		9,621,219
U.S. Growth Leaders		156,228,315		141,350,600
Worldwide Leaders		165,367,672		173,243,704
China Opportunities		4,222,474		2,764,816
Emerging Markets		31,779,359		25,173,810
International Growth		20,824,425		20,382,491
High Yield Bond		74,479,725		61,456,755
Value Opportunities		55,923,656		63,210,179
Micro Cap Equity		145,740,925		75,539,756
U.S. Growth Leaders Long-Short		123,074,992		137,493,303
Convertible		61,443,073		27,618,899
Small Cap Growth		18,676,453		16,156,436

6. Portfolio Investment Risks

Credit and Market Risk. Funds that invest in high yield and emerging market instruments are subject to certain additional credit and market risks. The yields of high yield and emerging market debt obligations reflect, among other things, perceived credit risk. The Funds’ investment in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging markets investments held by the Funds.

2004 Annual Report 173

Notes to Financial Statements (Continued)

October 31, 2004

7. Federal Tax Information

The tax character of distributions paid during the fiscal year ended October 31, 2004, were as follows:

	Distributions paid from
			Net Long						Total
	Ordinary		Term Capital		Total Taxable		Return of		Distributions
Fund	Income		Gains		Distributions		Capital		Paid
Global Financial Services	$	438,819	$	—	$	438,819	$	—	$	438,819
Global Health Sciences		707,293		—		707,293		—		707,293
Global Natural Resources		5,817		—		5,817		—		5,817
Global Technology and Communications		—		—		—		—		—
Global Utilities		12,874		—		12,874		—		12,874
Mid Cap Growth Leaders		—		—		—		—		—
Nationwide Leaders		—		—		—		—		—
U.S. Growth Leaders		—		—		—		—		—
Worldwide Leaders		—		—		—		—		—
China Opportunities		12,685		—		12,685		—		12,685
Emerging Markets		72,828		—		72,828		—		72,828
International Growth		—		—		—		—		—
High Yield Bond		6,900,084		—		6,900,084		—		6,900,084
Value Opportunities		34,141		—		34,141		—		34,141
Micro Cap Equity		—		14,217		14,217		—		14,217
U.S. Growth Leaders Long-Short		8,178,734		—		8,178,734		—		8,178,734
Convertible		378,591		—		378,591		—		378,591
Small Cap Growth		—		—		—		—		—

174 Annual Report 2004

The tax character of distributions paid during the fiscal year ended October 31, 2003 was as follows: (Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)

	Distributions paid from
			Net Long						Total
	Ordinary		Term Capital		Total Taxable		Return of		Distributions
Fund	Income		Gains		Distributions		Capital		Paid
Global Financial Services	$	3,983	$	—	$	3,983	$	—	$	3,983
Global Health Sciences		—		—		—		—		—
Global Natural Resources		—		—		—		—		—
Global Technology and Communications		—		—		—		—		—
Global Utilities		12,981		—		12,981		150		13,131
Mid Cap Growth Leaders		—		—		—		—		—
Nationwide Leaders		3,640		—		3,640		4,333		7,973
U.S. Growth Leaders		—		—		—		—		—
Worldwide Leaders		—		—		—		—		—
China Opportunities		—		—		—		—		—
Emerging Markets		—		—		—		—		—
International Growth		—		—		—		—		—
High Yield Bond		8,910,106		—		8,910,106		—		8,910,106
Value Opportunities		72,205		—		72,205		—		72,205
Micro Cap Equity		—		—		—		—		—
U.S. Growth Leaders Long-Short		—		—		—		—		—
Convertible		—		—		—		—		—
Small Cap Growth		—		—		—		—		—

2004 Annual Report 175

Notes to Financial Statements (Continued)

October 31, 2004

As of October 31, 2004, the components of accumulated earnings (deficit) on a tax basis was as follows: (Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid.)

	Undistributed		Undistributed		Undistributed
	Tax Exempt		Ordinary		Long-Term		Accumulated
Fund	Income		Income		Capital Gains		Earnings
Global Financial Services	$	—	$	444,602	$	21,751	$	466,353
Global Health Sciences		—		93,310		—		93,310
Global Natural Resources		—		132,318		—		132,318
Global Technology and Communications		—		—		—		—
Global Utilities		—		56,996		111,801		168,797
Mid Cap Growth Leaders		—		—		—		—
Nationwide Leaders		—		234,606		68,858		303,464
U.S. Growth Leaders		—		—		—		—
Worldwide Leaders		—		120,253		—		120,253
China Opportunities		—		244,471		—		244,471
Emerging Markets		—		572,362		1,110,895		1,683,257
International Growth		—		—		—		—
High Yield Bond		—		141,943		—		141,943
Value Opportunities		—		1,075,071		4,162,428		5,237,499
Micro Cap Equity		—		2,081,140		900,920		2,982,060
U.S. Growth Leaders Long-Short		—		919,954		—		919,954
Convertible		—		79,417		—		79,417
Small Cap Growth		—		—		—		—

[Additional columns below]

[Continued from above table, first column(s) repeated]

										Total
				Accumulated			Unrealized			Accumulated
	Distributions			Capital and			Appreciation			Earnings
Fund	Payable			Other Losses			(Depreciation)*			(Deficit)
Global Financial Services	$	—		$	—		$	363,444		$	829,797
Global Health Sciences		—			—			(109,356	)		(16,046	)
Global Natural Resources		—			—			246,782			379,100
Global Technology and Communications		—			(6,752,941	)		412,336			(6,340,605	)
Global Utilities		—			—			503,049			671,846
Mid Cap Growth Leaders		—			(35,812,866	)		798,366			(35,014,500	)
Nationwide Leaders		—			—			305,535			608,999
U.S. Growth Leaders		—			(408,426	)		2,648,051			2,239,625
Worldwide Leaders		—			(44,574,524	)		1,790,616			(42,663,655	)
China Opportunities		—			—			443,222			687,693
Emerging Markets		—			—			1,895,649			3,578,906
International Growth		—			(2,491,364	)		643,026			(1,848,338	)
High Yield Bond		(141,942	)		(32,211,863	)		1,115,319			(31,096,543	)
Value Opportunities		—			—			2,856,220			8,093,719
Micro Cap Equity		—			—			9,078,612			12,060,672
U.S. Growth Leaders Long-Short		—			(21,185,720	)		447,206			(19,818,560	)
Convertible		—			(326,679	)		(259,191	)		(506,453	)
Small Cap Growth		—			(277,820	)		46,390			(231,430	)

*  The differences between the book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to: tax deferral of losses on wash sales; the difference between book and tax amortization methods for premium and market discount; and the return of capital adjustments from real estate investment trusts.

As of October 31, 2004, the tax cost of securities and the breakdown of unrealized appreciation (depreciation) for each Fund were as follows:

								Net Unrealized
	Tax Cost of		Unrealized		Unrealized			Appreciation
Fund	Securities		Appreciation		Depreciation			(Depreciation)
Global Financial Services	$	5,945,522	$	490,274	$	(127,086	)	$	363,188
Global Health Sciences		16,252,661		400,888		(510,244	)		(109,356	)
Global Natural Resources		3,169,520		274,435		(27,653	)		246,782
Global Technology and Communications		8,439,692		676,448		(264,412	)		412,336
Global Utilities		6,188,311		568,730		(66,109	)		502,621
Mid Cap Growth Leaders		20,203,675		1,076,176		(277,810	)		798,366
Nationwide Leaders		4,332,523		357,815		(52,280	)		305,535
U.S. Growth Leaders		35,594,015		2,823,830		(175,779	)		2,648,051
Worldwide Leaders		33,213,984		2,115,787		(326,103	)		1,789,684
China Opportunities		6,281,757		599,641		(156,434	)		443,207
Emerging Markets		20,904,676		2,809,195		(917,314	)		1,891,881
International Growth		8,038,064		697,254		(62,796	)		634,458
High Yield Bond		23,374,539		1,547,031		(431,712	)		1,115,319
Value Opportunities		34,633,635		3,732,694		(876,474	)		2,856,220
Micro Cap Equity		118,268,996		14,197,195		(5,118,583	)		9,078,612
U.S. Growth Leaders Long-Short		39,096,514		1,313,606		(866,400	)		447,206
Convertible		35,820,832		648,034		(907,225	)		(259,191	)
Small Cap Growth		2,734,787		102,450		(56,060	)		46,390

176 Annual Report 2004

As of October 31, 2004, for Federal income tax purposes, the following Funds have capital loss carryforwards available to offset capital gains, if any, to the extent provided by the treasury regulations:

Fund	Amount		Expires
Global Technology and Communications	$	4,528,418		2009
Global Technology and Communications		1,182,126		2010
Global Technology and Communications		1,042,397		2012
Mid Cap Growth Leaders		31,043,487		2009
Mid Cap Growth Leaders		4,769,379		2010
U.S. Growth Leaders		257,332		2010
U.S. Growth Leaders		151,094		2011
Worldwide Leaders		32,481,540		2009
Worldwide Leaders		7,814,294		2010
International Growth		1,540,355		2009
International Growth		951,009		2010
High Yield Bond		13,413,036		2009
High Yield Bond		18,798,827		2010
U.S. Growth Leaders Long-Short		7,268,670		2009
U.S. Growth Leaders Long-Short		8,923,711		2010
U.S. Growth Leaders Long-Short		4,469,833		2011
U.S. Growth Leaders Long-Short		523,506		2012
Convertible		326,679		2012
Small Cap Growth		277,820		2012

As of October 31, 2004, the following Fund has additional capital loss carryforwards, subject to any applicable limitations on availability, to offset future capital gains, if any, as the successor of a merger with the Montgomery Global Focus Fund and Montgomery Global Opportunities Fund:

Fund	Amount		Expires
Worldwide Leaders	$	2,230,808		2008
Worldwide Leaders		1,121,464		2009
Worldwide Leaders		926,418		2010

8. Other Federal Tax Information (Unaudited):

For the period ended October 31, 2004, certain dividends paid by the Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%. Complete information will be reported in conjunction with your 2004 Form 1099-DIV.

For the period ended October 31, 2004, the following Funds paid qualified dividend income:

	Qualified
	Dividend
Fund	Income
Global Financial Services	$	147,148
Global Natural Resources		5,817
Global Utilities		9,726
China Opportunities		12,685
Emerging Markets		72,828
High Yield Bond		13,537
Value Opportunities		34,141
U.S. Growth Leaders Long-Short		172,187

2004 Annual Report 177

Notes to Financial Statements (Continued)

October 31, 2004

For the taxable year ended October 31, 2004, the following percentage of income dividends paid by the Funds qualify for the dividends received deduction available to corporations:

	Dividends
	Received
Fund	Deduction
Global Financial Services		12	%
Global Health Sciences		5	%
Global Natural Resources		9	%
Global Utilities		52	%
Value Opportunities		46	%
U.S. Growth Leaders Long-Short		4	%
Convertible		43	%

178 Annual Report 2004

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of Gartmore Mutual Funds:

In our opinion, the accompanying statements of assets and liabilities, including the statements of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Gartmore Global Financial Services Fund, Gartmore Global Health Sciences Fund, Gartmore Global Natural Resources Fund, Gartmore Global Technology and Communications Fund, Gartmore Global Utilities Fund, Gartmore Mid Cap Growth Leaders Fund, Gartmore Nationwide Leaders Fund, Gartmore U.S. Growth Leaders Fund, Gartmore Worldwide Leaders Fund, Gartmore China Opportunities Fund, Gartmore Emerging Markets Fund, Gartmore International Growth Fund, Gartmore High Yield Bond Fund, Gartmore Value Opportunities Fund, Gartmore Micro Cap Equity Fund, Gartmore U.S. Growth Leaders Long-Short Fund, Gartmore Convertible Fund and Gartmore Small Cap Growth Fund (eighteen series of Gartmore Mutual Funds, hereafter referred to as the “Funds”) at October 31, 2004, the results of each of their operations for the year (or period) then ended, the changes in each of their net assets for each of the two years (or periods) then ended and the financial highlights for each of the three years (or periods) then ended in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States.) Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights of Gartmore Global Health Sciences Fund, Gartmore Global Technology and Communications Fund, Gartmore Mid Cap Growth Leaders Fund, Gartmore U.S. Growth Leaders Fund, Gartmore Worldwide Leaders Fund, Gartmore Emerging Markets Fund, Gartmore International Growth Fund, Gartmore High Yield Bond Fund and Gartmore Value Opportunities Fund for the periods ended on or before October 31, 2001 were audited by other independent accountants whose report dated December 14, 2001 expressed an unqualified opinion on those financial statements.

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

December 27, 2004

2004 Annual Report 179

Management Information (Unaudited)

Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Funds

October 31, 2004

			Number of Portfolios
	Position(s) Held		in the		Other
	with the Trust	Principal Occupation(s)	Gartmore Fund		Directorships
Name, Address	and Length of	During Past	Complex Overseen		Held by Trustee
and Date of Birth	Time Served1	Five Years	by Trustee		or Nominee2
Charles E. Allen c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1948	Trustee since July 2000	Mr. Allen is Chairman, Chief Executive Officer and President of the Graimark Realty Advisors, Inc. (real estate development, investment and asset management).3		84	None
Michael J. Baresich c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000, Conshohocken, PA 19428 1954	Trustee since March 2004	Mr. Baresich has been Chairman of the Board of Cokinetic Systems Corp. (software company) since July 2004. Prior thereto and since 2001, Mr. Baresich served as its Chief Executive Officer. From June 1999 through August 2001, Mr. Baresich was a managing Director of Deutsche Bank. Prior to June 1999, Mr. Baresich was a Managing Director of Bankers Trust.		84	None
Paula H.J. Cholmondeley c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1947	Trustee since July 2000	Ms. Cholmondeley has been the Chairman and Chief Executive Officer of the Sorrel Group, a management consulting company, since January 2004. From March 2000 through December 2003, Ms. Cholmondeley was Vice President and General Manager of Sappi Fine Paper North America. Prior thereto, Ms. Cholmondeley was Vice President and General Manager of Residential Insulation of Owens Corning.		84	Director of Dentsply International, Inc., Ultralife Batteries, Inc., and Terex Corporation.
C. Brent DeVore c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1940	Trustee since 1990	Dr. DeVore is President of Otterbein College.		84	None
Phyllis K. Dryden c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1947	Nominee	Ms. Dryden was a former Managing Partner of marchFIRST, a global management consulting firm prior to 2002.		84	None

180 Annual Report 2004

Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Funds

October 31, 2004 (Continued)

			Number of Portfolios
	Position(s) Held		in the		Other
	with the Trust	Principal Occupation(s)	Gartmore Fund		Directorships
Name, Address	and Length of	During Past	Complex Overseen		Held by Trustee
and Date of Birth	Time Served1	Five Years	by Trustee		or Nominee2
Robert M. Duncan* c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1927	Trustee since April 1987	Mr. Duncan is Vice President and Secretary Emeritus of The Ohio State University.		84	None
Barbara L. Hennigar* c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1935	Trustee since July 2000	Retired since June 2000. Prior thereto, Ms. Hennigar was the Chairman or President and Chief Executive Officer of OppenheimerFunds Services and a member of the Executive Committee of OppenheimerFunds.		84	None
Barbara I. Jacobs c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1951	Nominee	Ms. Jacobs has served as Chairman of the Board of Directors of KICAP Network Fund, a European (United Kingdom) hedge fund, since December 2000. Prior to 2004, Ms. Jacobs was also a Managing Director and European Portfolio Manager with CREF Investments (Teacher Insurance Annuity Association — College Retirement Equity Funds).		84	None
Thomas J. Kerr, IV* c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1933	Trustee since October 1971	Dr. Kerr is President Emeritus of Kendall College.		84	None
Douglas F. Kridler c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1955	Trustee since September 1997	Mr. Kridler has served as the President and Chief Executive Officer of the Columbus Foundation (a Columbus, OH-based foundation which manages over 1,300 individual endowment funds) since February 2002. Mr. Kridler was the President of the Columbus Association for the Performing Arts prior thereto and Chairman of the Greater Columbus Convention and Visitors Bureau during 2000 and 2001.		84	None

2004 Annual Report 181

Management Information (Unaudited)

Trustees who are not Interested Persons (as defined in the 1940 Act) and Officers of the Funds

October 31, 2004 (Continued)

			Number of Portfolios
	Position(s) Held		in the		Other
	with the Trust	Principal Occupation(s)	Gartmore Fund		Directorships
Name, Address	and Length of	During Past	Complex Overseen		Held by Trustee
and Date of Birth	Time Served1	Five Years	by Trustee		or Nominee2
Michael D. McCarthy c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1948	Nominee	Mr. McCarthy serves as: the Founder and Chairman of The Eureka Foundation (which sponsors and funds the “Great Museums” series on PBS); and a Partner of Pineville Properties LLC (a commercial real estate development firm).		844	None
David C. Wetmore c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1948	Trustee since 1995	Mr. Wetmore is a Managing Director of Updata Capital, an investment banking and venture capital firm.		84	None

*	Pursuant to the Trust’s mandatory retirement policy, Mr. Duncan and Dr. Kerr are expected to retire on or about March 2, 2005, and Ms. Hennigar is expected to retire on or about October 12, 2005.
1	The term of office length is until a trustee resigns or reaches a mandatory retirement age of 70. On March 2, 2000, the Board adopted a five-year implementation period for any Trustee 65 or older as of the adoption of this policy.
2	Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
3	Mr. Allen owns a 51% interest in Graimark Realty Advisors, Inc., a 67% owner of G/ W Jefferson-St Jean LLC (“Jefferson-St”), a real estate development company. Until July 28, 2004, Jefferson-St had a construction loan, guaranteed by Mr. Allen, in the principal amount of $12.5 million (“Construction Loan”), from Bank One, NA, obtained in August, 2002. On July 1, 2004, Bank One Corporation merged with and into J.P. Morgan Chase & Co. (the “Merger”). Bank One Corporation was the parent company of Bank One, N.A. J.P. Morgan Chase & Co. is the parent company of J.P. Morgan Investment Management, Inc., subadviser of two of the Funds of the Trust. On July 28, 2004, the Construction Loan was refinanced with an unaffiliated permanent lender. Neither Mr. Allen nor the Trust’s management believes that the Construction Loan, secured well in advance of the Merger, and refinanced within 28 days following the completion of the Merger, should result in Mr. Allen’s being deemed to have a “material business relationship” with an investment adviser to the Trust.
4	Messrs. McCarthy and Hondros (see table below) are also Administrative Committee Members for the Alphagen Arneb Fund, LLC , The Healthcare Fund LDC, The Leaders Long-Short Fund, LLC, and The Leaders Leaders Long-Short Fund LDC, four private investment companies (hedge funds) managed by GSA.
**	Trustees and Officers who are not Interested Persons (as defined in the 1940 Act) of the Funds received aggregate compensation of $384,292 from the Trust for the Year Ended October 31, 2004. Additional information regarding the Trustees and Officers may be found in the Trust’s statement of additional information, which is available without charge upon request, by calling 1-800-848-0920. Federal law requires the Trust, each of its investment advisers and sub-advisers to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i) upon request, by calling 1-800-848-0920, (ii) on the Fund’s website at www.gartmorefunds.com, or (iii) on the Securities and Exchange Commission’s website at www.sec.gov.

182 Annual Report 2004

Trustees and Officers who are Interested Persons (as defined in the 1940 Act) and Officers of the Funds

October 31, 2004

			Number of Portfolios
	Position(s) Held		in the
Name,	with the Trust	Principal Occupation(s)	Gartmore Fund		Other
Address	and Length of	During Past	Complex Overseen		Directorships
and Age	Time Served1	Five Years	by Trustee		Held by Trustee2
Paul J. Hondros Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1948	Trustee and Chairman since July 2000	Mr. Hondros has been President and Chief Executive Officer of various Gartmore entities, including Gartmore Distribution Services, Inc. (“GDSI”),3 Gartmore Investor Services, Inc. (“GISI”),3 Gartmore Morley Capital Management, Inc. (“GMCM”),3 Gartmore Morley Financial Services, Inc. (“GMFS”),3 NorthPointe Capital, LLC (“NorthPointe”),3 Gartmore Global Asset Management Trust (“GGAMT”)3, Gartmore Global Investments, Inc. (“GGI”)3, Gartmore Mutual Fund Capital Trust (“GMFCT”) 3 and Gartmore SA Capital Trust (“GSA”)3 ; and a Director of Nationwide Securities, Inc.3, as well as several entities within Nationwide Financial Services, Inc.		844	None
Arden L. Shisler c/o Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1941	Trustee since February 2000	Mr. Shisler has been a consultant since January 2003. Prior thereto, he was President and Chief Executive Officer of K&B Transport, Inc., a trucking firm. Since 1992, Mr. Shisler has also been Chairman of the Board for Nationwide Mutual Insurance Company.		84	Director of Nationwide Financial Services, Inc.
Gerald J. Holland Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1951	Treasurer since March 2001	Mr. Holland is Senior Vice President — Operations for GGI3, GMFCT3 , and GSA3. Prior to July 2000, Mr, Holland was Vice President for First Data Investor Services, an investment company service provider.		84	None
Michael A. Krulikowski Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1959	Chief Compliance Officer since June 2004	Since November 1999, Mr. Krulikowski has served as a Vice President and Chief Compliance Officer of GGI. Prior thereto, Mr. Krulikowski served as Chief Compliance Officer of 1717 Capital Management Company/ Provident Mutual Insurance Company.		84	None

2004 Annual Report 183

Management Information (Unaudited)

Trustees and Officers who are Interested Persons (as defined in the 1940 Act) and Officers of the Funds

October 31, 2004 (Continued)

			Number of Portfolios
	Position(s) Held		in the
Name,	with the Trust	Principal Occupation(s)	Gartmore Fund		Other
Address	and Length of	During Past	Complex Overseen		Directorships
and Age	Time Served1	Five Years	by Trustee		Held by Trustee2
Eric E. Miller Gartmore Global Investments, Inc. 1200 River Road, Suite 1000 Conshohocken, PA 19428 1954	Secretary since December 2002	Mr. Miller is Senior Vice President, Chief Counsel for GGI3, GMFCT3 and GSA3 since August 2002. From August 2000 to August 2002, Mr. Miller was a Partner with Stradley Ronan Stevens & Young, LLP. Prior to August 2000, Mr. Miller served as Senior Vice President and Deputy General Counsel at Delaware Investments.		84	None

1	The term of office length is until a trustee resigns or reaches a mandatory retirement age of 70. On March 2, 2000, the Board adopted a five-year implementation period for any Trustee 65 or older as of the adoption of this policy.
2	Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
3	This position is held with an affiliated person or principal underwriter of the Trust.
4	Messrs. McCarthy and Hondros (see table below) are also Administrative Committee Members for the Alphagen Arneb Fund, LLC , The Healthcare Fund LDC, The Leaders Long-Short Fund, LLC, and The Leaders Long-Short Fund LDC, four private investment companies (hedge funds) managed by GSA.
*	Trustees and Officers who are not Interested Persons (as defined in the 1940 Act) of the Funds received aggregate compensation of $384,292 from the Trust for the Year Ended October 31, 2004. Additional information regarding the Trustees and Officers may be found in the Trust’s statement of additional information, which is available without charge upon request, by calling 1-800-848-0920. Federal law requires the Trust, each of its investment advisers and sub-advisers to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i) upon request, by calling 1-800-848-0920, (ii) on the Fund’s website at www.gartmorefunds.com, or (iii) on the Securities and Exchange Commission’s website at www.sec.gov.

184 Annual Report 2004

Index Definitions

Citigroup 3-Month T-Bill Index: An unmanaged index that is generally representative of 3-month Treasury bills; consists of an average of the last 3-month Treasury bill issues (excluding the current month-end bill).

Citigroup High-Yield Market Index: An unmanaged index of high-yield debt securities that is a broad market measure.

Goldman Sachs Convertible 100 Index: An unmanaged index that tracks the performance of 100 equally weighted convertible issues, each with a market capitalization of at least $100 million. The index measures the performance of its components against that of their underlying common stocks as well as against other broad market indexes.

Goldman Sachs Healthcare Index: An unmanaged, market capitalization-weighted index that is generally representative of the stocks in the health-care sector.

Goldman Sachs Natural Resources Index: An unmanaged, modified capitalization-weighted sector index of U.S.-traded natural resource-related stocks; includes companies in the categories of extractive industries, energy companies, owners and operators of timber tracts, forestry services, producers of pulp and paper, and owners of plantations.

Goldman Sachs Technology Composite Index (GSTI®): An unmanaged, market capitalization-weighted index that is designed to measure the performance of companies in the technology sector.

Morgan Stanley Capital International (MSCI) All Country World excluding U.S. Index: An unmanaged, free float-adjusted, market-capitalization index that is designed to measure the performance of the stocks in companies in all countries except the United States.

Morgan Stanley Capital International (MSCI) Emerging Markets Index^SM: An unmanaged, free float-adjusted, market-capitalization index that is designed to measure the performance of the stocks in emerging-country markets.

Morgan Stanley Capital International (MSCI) World Index^SM: An unmanaged, free float-adjusted, market-capitalization index that is designed to measure the performance of global developed-market equities.

Morgan Stanley Capital International (MSCI) World Financials Index^SM: An unmanaged index that is based on developed-market country indexes and is generally representative of the stocks in the global financial services sector.

Morgan Stanley Capital International (MSCI) World Telecommunication Services Index^SM: An unmanaged index that is based on developed-market country indexes and is generally representative of the stocks in the global utilities sector.

Morgan Stanley Capital International (MSCI) World Utilities Index^SM: An unmanaged index that is based on developed-country indexes and is generally representative of the stocks in the utilities sector, which includes industry groups such electric, gas, multi-utilities, and unregulated power and water.

Morgan Stanley Capital International (MSCI) Zhong Hua Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in the developed markets of China and Hong Kong; the index gives one-third of its weightings to China stocks and the remainder to Hong Kong stocks.

Morgan Stanley High-Tech 35 Index: An unmanaged, equal dollar-weighted index of 35 stocks in nine different technology subsectors that represents the electronics-based technology industry.

Russell 2000® Index: An unmanaged index that measures the performance of the stocks of small-capitalization U.S. companies; includes the smallest 2,000 U.S. companies in the Russell 3000® Index, which measures the performance of the largest 3,000 U.S. companies, based on market capitalization.

Russell 2000® Growth Index: An unmanaged index that measures the performance of the stocks of U.S. companies in the Russell 2000® Index (the smallest 2,000 U.S. companies, based on market capitalization) with higher price-to-book ratios and higher forecasted growth values.

Russell Midcap® Growth Index: An unmanaged index of mid-capitalization growth stocks of U.S. companies; measures the performance of the stocks of those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values, and gives a broad look at how the stock prices of medium-sized U.S. companies have performed.

Standard & Poor’s 500 (S&P 500) Index: An unmanaged, capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed.

Standard & Poor’s/International Finance Corporation Investable (S&P/IFCI) Composite Index: An unmanaged index that is designed to represent the performance of the stocks in emerging stock markets that are available to foreign institutional investors.

Wilshire Micro-Cap® Index: An unmanaged, capitalization-weighted index that measures small-cap stocks in the bottom “half” of the Wilshire 5000 Total Market Index as of June 30 of each year; the Wilshire 5000 Total Market Index contains more than 6,500 stocks that trade and are based in the United States.

Gartmore Funds

1200 River Road, Suite 1000
Conshohocken, PA 19428

www.gartmorefunds.com

Federal law requires the Trust, and each of its investment advisers and subadvisers, to adopt procedures for voting proxies (“Proxy Voting Guidelines”) and to provide a summary of those Proxy Voting Guidelines used to vote the securities held by the Funds. The Funds’ proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Funds’ Web site at www.gartmorefunds.com, or (iii) on the U.S. Securities and Exchange Commission’s Web site at www.sec.gov.

© 2004 Gartmore Global Investments, Inc.
All rights reserved.

Item 2. Code of Ethics.

Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as Exhibit 11 (a)(1).

The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 11(a)(1), unless the registrant has elected to satisfy paragraph (f) of this Item by posting its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item.

If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver.

During the period covered by the report, with respect to the registrant’s code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2.

Item 3. Audit Committee Financial Expert.

(a)   (1) Disclose that the registrant’s board of directors has determined that the registrant either:

(i)	Has at least one audit committee financial expert serving on its audit committee; or
(ii)	Does not have an audit committee financial expert serving on its audit committee.

(2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is “independent.” In order to be considered “independent” for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee:

(i)	Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or
(ii)	Be an “interested person” of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a- 2(a)(19)).

(3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not
have an audit committee financial expert.

3(a)(1) The registrant’s board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee.

3(a)(2) The audit committee financial expert is Paula H.J. Cholmondeley, who is “independent” for purposes of this Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

     (a) through (d). The information in the table below is provided for services rendered to the registrant by its principal accountant, PricewaterhouseCoopers LLP (“PwC”), for its fiscal years ended October 31, 2003 and October 31, 2004.

	2003		2004
Audit Fees	$	357,445	$	396,045
Audit-Related Fees1	$	74,900	$	30,000
Tax Fees2	$	94,800	$	118,125
All Other Fees	$	50,000	$	0
Total	$	577,145	$	544,170

1	Services include security counts performed under Rule 17f-2 of the 1940 Act.
2	Tax services in connection with the Funds’ excise tax calculations and review of the Funds’ applicable tax returns.

     The information in the table below is provided with respect to non-audit services that directly relate to the registrant’s operations and financial reporting and that were rendered by PwC to the registrant’s investment adviser, Gartmore Global Investors(“GGI”), and any service provider to the registrant controlling, controlled by or under common control with GGI that provided ongoing services to the registrant (“Covered Services Provider”), for the registrant’s fiscal years ended October 31, 2003 and October 31, 2004.

	2003	2004
Audit-Related Fees	None.	None.
Tax Fees	None.	None.
All Other Fees	None	None.
Total	None.	None.

     (e)(1) Pre-Approval Policies and Procedures. The Audit Committee (“Committee”) of the registrant is responsible for pre-approving (i) all audit and permissible non-audit services to be provided by the independent auditors to the registrant and (ii) all permissible non-audit services to be provided by the independent auditors to GGI and any Covered Services Provider if the engagement relates directly to the operations and financial reporting of the registrant. The Committee may delegate its responsibility to pre-approve any such audit and permissible non-audit services to the Chairperson of the Committee, and the Chairperson shall report to the Committee, at its next regularly scheduled meeting after the Chairperson’s pre-approval of such services, his or her decision(s). The Committee may also establish detailed pre-approval policies and procedures for pre-approval of such services in accordance with applicable laws, including the delegation of some or all of the Committee’s pre-approval responsibilities to other persons (other than GGI or the registrant’s officers). Pre-approval by the Committee of any permissible non-audit services shall not be required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the registrant, GGI and any Covered Services Provider constitutes not more than 5% of the total amount of revenues paid by the registrant to its independent auditors during the fiscal year in which the permissible non-audit services are provided; (ii) the permissible non-audit services were not recognized by the registrant at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

     (e)(2) The information in the table below sets forth the percentages of fees for services (other than audit, review or attest services) rendered by PwC to the registrant for which the pre-approval requirement was waived pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X: [indicate if percentages calculated with or without all audit fees for all funds] [or: Not Applicable]

     Not Applicable.

	2003	2004
	None.	None.
Audit-Related Fees
Tax Fees
All Other Fees
Total

     The information in the table below sets forth the percentages of fees for services (other than audit, review or attest services) rendered by PwC to GGI and any Covered Services Provider required to be approved pursuant to Rule 2-01(c)(7)(ii)of Regulation S-X, for the registrant’s fiscal years ended October 31, 2003 and October 31, 2004: [indicate if percentages calculated with or without all audit fees for all funds] [or: Not Applicable]

	2003		2004
Audit-Related Fees		N/A		N/A
Tax Fees		N/A		N/A
All Other Fees		N/A		N/A
Total		N/A		N/A

     (f) The percentage of hours expended to audit the registrant’s financial statements for the fiscal year ended October 31, 2004 that were attributed to work performed by persons other than PwC’s full-time, permanent employees was ___%. [if over 50%] [or: Not Applicable]

     Not applicable.

     (g) The aggregate fees billed by PwC for non-audit services rendered to the registrant and service affiliates for the fiscal years ended October 31, 2003 and October 31, 2004 were $1,143,226 and $1,855,629 respectively.

     (h) The registrant’s Audit Committee has considered whether the provision by PwC of non-audit services to GGI and Covered Services Providers that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X because they did not directly relate to the registrant’s operations and financial reporting is compatible with maintaining PwC’s independence. [or: Not Applicable]

     Not Applicable.

Item 5. Audit Committee of Listed Registrants.

(a)

If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant’s audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.

(b)

If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17CFR 240.10A-3(d)) regarding an exemption from the listing standards for all audit committees.

Not applicable.

Item 6. Schedule of Investments.

File Schedule I – Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in § 210.12-12 of Regulation S-X, unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form.

This schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

     A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company’s investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company’s investment adviser, or any other third party, that the company uses, or that are used on the company’s behalf, to determine how to vote proxies relating to portfolio securities.

Not applicable.

Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

If the registrant is a closed-end management investment company, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant’s equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781).

Not applicable

Item 9. Submission of Matters to a Vote of Security Holders.

Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item.

There were no material changes in the registrant’s procedures by which shareholders may recommend nominees to the registrant’s board of directors.

Item 10. Controls and Procedures.

     (a) Disclose the conclusions of the registrant’s principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).

The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is (i) accumulated and communicated to the investment company’s management, including the investment company’s certifying officers, to allow timely decisions regarding required disclosure; and (ii) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b) Disclose any change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal half-year (the registrant’s second fiscal half-year in the case of an annual report) that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 11. Exhibits.

     (a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated.

     (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit.

The code of ethics that is the subject of the disclosure required by Item 2 is attached hereto.

     (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2). Certifications pursuant to Rule 30a-2(a) are attached hereto.

     (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.

     (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by rule 30a-2(b) under the Act as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant incorporates it by reference. Certifications pursuant to Rule 30a-2(b) are furnished herewith.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)                     GARTMORE MUTUAL FUNDS

By (Signature and Title)* /s/ GERALD J. HOLLAND
     Name: Gerald J. Holland
     Title: Treasurer
     Date: January 10, 2005

     Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)* /s/ PAUL J. HONDROS
     Name: Paul J. Hondros
     Title: President & Chairman of the Board
     Date: January 10, 2005

By (Signature and Title)* /s/ GERALD J. HOLLAND
     Name: Gerald J. Holland
     Title: Treasurer
     Date: January 10, 2005

* Print the name and title of each signing officer under his or her signature.