Nationwide Small Company Growth Fund NCSR Certified annual shareholder report (management investment company)

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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).

(GARTMORE FUNDS LOGO)

Annual Report

October 31, 2004

Core Equity Series
Gartmore Growth Fund
Gartmore Large Cap Value Fund
Gartmore Nationwide Fund
Gartmore Mid Cap Growth Fund
Gartmore Small Cap Fund

Core Asset Allocations Series
Gartmore Investor Destinations Aggressive Fund
Gartmore Investor Destinations Moderately Aggressive Fund
Gartmore Investor Destinations Moderate Fund
Gartmore Investor Destinations Moderately Conservative Fund
Gartmore Investor Destinations Conservative Fund

Core Fixed Income Series
Gartmore Bond Fund
Gartmore Government Bond Fund
Gartmore Tax-Free Income Fund
Gartmore Money Market Fund
Gartmore Morley Enhanced Income Fund
Gartmore Morley Capital Accumulation Fund

www.gartmorefunds.com

(GARTMORE LOGO)

Solutions.

(GARTMORE LOGO)

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 billion¹in 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® LLC.³

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.

(GARTMORE FUNDS LOGO)

Annual Report

October 31, 2004


				Contents

	2			Message to Shareholders
	3			Market Perspectives

				Core Equity Series
	9			Gartmore Growth Fund
	15			Gartmore Large Cap Value Fund
	22			Gartmore Nationwide Fund
	29			Gartmore Mid Cap Growth Fund
	35			Gartmore Small Cap Fund

				Core Asset Allocations Series
	52			Gartmore Investor Destinations Aggressive Fund
	57			Gartmore Investor Destinations Moderately Aggressive Fund
	62			Gartmore Investor Destinations Moderate Fund
	67			Gartmore Investor Destinations Moderately Conservative Fund
	72			Gartmore Investor Destinations Conservative Fund
				Core Fixed Income Series
	87			Gartmore Bond Fund
	94			Gartmore Government Bond Fund
	99			Gartmore Tax-Free Income Fund
	107			Gartmore Money Market Fund
	116			Gartmore Morley Enhanced Income Fund
	124			Gartmore Morley Capital Accumulation Fund

	141			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.

Core Series


	Gartmore Growth Fund

For the annual period ended Oct. 31, 2004, the Gartmore Growth Fund returned 2.70% (Class A at NAV) versus 3.38% for its benchmark, the Russell 1000® Growth Index. For broader comparison, the average return for the Fund’s Lipper peer category of Large-Cap Growth Funds was 2.67%.

The Fund is designed to be a large-cap growth investment portfolio that employs advanced quantitative tools—as well as in-depth, value-added fundamental research—while still adhering to a limited tracking error to its benchmark, the Russell 1000® Growth Index.

We positioned the Fund in line with our view that the economy was in the process of a long-term recovery. In general, this positioning, combined with our stock selection decisions, added to Fund returns. Several overweight positions in the hotels, restaurants and leisure industry (within the consumer discretionary sector), for example, contributed positively to the Fund’s performance on both a relative and an absolute basis; stocks within this industry outperformed similar stocks within the Index by about 1.1%. Among the strong performers in this area were Las Vegas-based resorts Mandalay Resort Group and MGM Mirage, both of which benefited from strong booking rates and from MGM’s purchase of Mandalay. The Fund held overweight positions in both of these stocks. Our holdings within the industrials sector also added to Fund returns, thanks primarily to stock selection decisions within the industrial conglomerates and the aerospace and defense industries.

Despite posting positive results earlier in the period, the information technology sector ultimately detracted from Fund returns and was largely responsible for the Fund’s underperformance versus its Index. Higher beta—or riskier—stocks, such as those within this sector, generally fell as investment conditions turned more tentative toward the middle of the annual period. The Fund had a slightly more aggressive posture in this sector compared to that of the Index during much of the year, which detracted from performance. The economic environment most negatively affected semiconductor and semiconductor equipment stocks, such as Intel Corp. and Broadcom Corp., which jointly detracted nearly 1.5% from the Fund’s return.

Looking ahead, we believe that the economy will continue to play out its recovery and favor growth; therefore, we do not plan to make any major shifts in the portfolio’s positioning. Consistent with our expectations, the Fund already is positioned with an emphasis on cyclical areas of the market, defined as those that perform best during times of recovery. For example, we continue to maintain a small overweight position within the consumer discretionary and the information technology sectors, since those areas tend to perform well in improving economic conditions. We also plan to increase the Fund’s position slightly within the software industry due to the fact that our research indicates that this area is positioned for strong revenue growth through the end of this year and into early 2005. In line with our views, the Fund holds smaller positions in traditionally defensive areas such as the health-care and consumer staples sectors.

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


	Class A: NMFAX
	Class B: NMFBX
	Class C: GCGRX
	Class D: MUIGX
	Class R: GGFRX
	Institutional Service Class: GWISX
	Institutional Class: GGFIX

2004 Annual Report 9

Core Series

Gartmore Growth Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One		Five		Ten
		year		years		years


Class A¹	without sales charge²		2.70%		-12.64%		2.16%
	with sales charge³		-3.18%		-13.67%		1.56%

Class B¹	without sales charge²		1.81%		-13.73%		1.43%
	with sales charge⁴		-3.19%		-13.95%		1.43%

Class C¹	without sales charge²		2.00%		-13.18%		1.86%
	with sales charge⁵		1.00%		-13.18%		1.86%

Class D⁶	without sales charge²		2.87%		-12.40%		2.32%
	with sales charge⁷		-1.72%		-13.21%		1.85%

Class R ^1,8			2.50%		-12.47%		2.28%

Institutional Class^1,8			2.87%		-12.40%		2.32%

Institutional Service Class^1,8			3.03%		-12.35%		2.35%

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), Institutional Service Class shares (1/2/02), Class R shares (10/1/03), and Institutional Class shares (6/29/04). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A, Class B, Class C, Institutional Service Class, Class R shares and Institutional Class 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 from the one year return 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.

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.

LOGO


	Class D (A 4.50% front-end
	sales charge was deducted.)		Russell 1000 Growth		CPI

Oct 31, 94		9554		10000		10000
Oct 31, 95		11561		12923.2		10280.9
Oct 31, 96		12990		15772.4		10588.6
Oct 31, 97		17162		20578.8		10809.4
Oct 31, 98		19897		25649.6		10969.9
Oct 31, 99		23293		34434.5		11250.8
Oct 31, 00		21842		37647.8		11638.8
Oct 31, 01		11561		22609.1		11886.3
Oct 31, 02		9323		18173.9		12127.1
Oct 31, 03		11678		22138.3		12374.6
Oct 31, 04		12013		22886.3		12719.1

Comparative performance of $10,000 invested in Class D shares of the Gartmore Growth Fund, the Russell 1000 Growth Index (Russell 1000 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 1000 Growth measures the performance of those companies in the Russell 1000 Index (the largest 1000 companies in the U.S.) with higher price-to-book ratios and higher forecasted growth values.

(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 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
Growth Fund			5/1/04		10/31/04		During Period*			Expense Ratio


Class A	Actual		$	1,000	$	1,008	$	6.06			1.20%
	Hypothetical	¹	$	1,000	$	1,019	$	6.11			1.20%

Class B	Actual		$	1,000	$	1,005	$	9.33			1.85%
	Hypothetical	¹	$	1,000	$	1,016	$	9.42			1.85%

Class C	Actual		$	1,000	$	1,005	$	9.33			1.85%
	Hypothetical	¹	$	1,000	$	1,016	$	9.42			1.85%

Class D	Actual		$	1,000	$	1,010	$	4.34			0.86%
	Hypothetical	¹	$	1,000	$	1,021	$	4.38			0.86%

Class R	Actual		$	1,000	$	1,010	$	6.21			1.23%
	Hypothetical	¹	$	1,000	$	1,019	$	6.26			1.23%

Institutional Service Class	Actual		$	1,000	$	1,011	$	3.99			0.79%
	Hypothetical	¹	$	1,000	$	1,021	$	4.02			0.79%

Institutional Class (a)	Actual		$	1,000	$	973	$	2.67	(b)		0.80%
	Hypothetical	¹	$	1,000	$	1,013	$	2.73	(b)		0.80%


(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 Growth Fund

Core 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			100.2%
Commercial Paper			0.5%
Other Investments*			4.0%
Liabilities in excess of Other Assets**			-4.7%

			100.0%


*	Includes value of collateral received from securities lending.

**	Includes value of collateral owed from securities lending.


Top Industries


Computer Software & Services			12.4%
Retail			11.8%
Manufacturing			8.7%
Financial Services			8.7%
Healthcare			8.4%
Semiconductors			6.7%
Drugs			6.5%
Computer Equipment			6.4%
Telecommunications			5.6%
Consumer Products			4.7%
Other Industries			20.1%

			100.0%


Top Holdings


Pfizer, Inc.			3.7%
Microsoft Corp.			3.5%
Dell, Inc.			2.5%
Cisco Systems, Inc.			2.3%
Lowe’s Cos., Inc.			2.1%
Marriott International, Inc., Class A			2.1%
Capital One Financial Corp.			2.0%
Gillette Co. (The)			1.9%
Kohl’s Corp.			1.9%
PepsiCo, Inc.			1.9%
Other Holdings			76.1%

			100.0%

12 Annual Report 2004

Gartmore Growth Fund

Statement of Investments

October 31, 2004

Gartmore Growth Fund



Common Stocks (100.2%)

	Shares or
	Principal Amount		Value

Chemicals (1.1%)
Praxair, Inc.		66,930	$	2,824,446



Coal (0.5%)
Peabody Energy Corp.		19,000		1,211,820



Computer Equipment (6.4%)
Cisco Systems, Inc. (b)		300,552		5,773,604
Dell, Inc. (b)		177,691		6,229,846
EMC Corp. (b)		321,200		4,133,844


				16,137,294



Computer Software & Services (12.4%)
Adobe Systems, Inc.		31,310		1,754,299
Business Objects S.A. ADR-FR		77,400		1,975,248
Hyperion Solutions Corp. (b)		33,700		1,352,381
Intel Corp.		190,521		4,240,997
Macfee, Inc.		60,700		1,468,940
Mercury Interactive Corp. (b)		32,100		1,394,103
Microsoft Corp.		318,858		8,924,835
Oracle Corp. (b)		207,339		2,624,912
Symantec Corp. (b)		34,200		1,947,348
VeriSign, Inc. (b)		62,720		1,682,778
Yahoo, Inc. (b)		121,304		4,389,992


				31,755,833



Consumer Products (4.7%)
Estee Lauder Co., Inc., Class A		29,770		1,278,622
Fortune Brands, Inc.		28,860		2,101,585
Gillette Co. (The)		117,145		4,859,174
Procter & Gamble Co.		45,220		2,314,360
Sherwin-Williams Co.		31,420		1,342,262


				11,896,003



Drugs (6.5%)
Eli Lilly & Co.		45,089		2,475,837
Forest Laboratories, Inc., Class A (b)		49,390		2,202,794
Pfizer, Inc.		326,520		9,452,754
Wyeth		56,700		2,248,155


				16,379,540



Electronics (0.6%)
L-3 Communications Holdings, Inc. (b)		21,630		1,426,066



Entertainment (1.4%)
Carnival Corp.		40,620		2,053,747
XM Satellite Radio Holdings, Inc.		48,750		1,575,600


				3,629,347



Financial Services (8.7%)
American Express Co.		74,310		3,943,631
Capital One Financial Corp.		69,456		5,123,074
Countrywide Financial Corp.		38,700		1,235,691
E*TRADE Group, Inc.		97,500		1,257,750
Franklin Resources, Inc.		44,100		2,673,342
Goldman Sachs Group, Inc.		27,620		2,717,256
Northern Trust Corp.		31,520		1,340,861
T. Rowe Price Group, Inc.		35,700		1,990,989
U.S. BanCorp		64,880		1,856,217


				22,138,811



Food & Beverage (2.7%)
Anheuser-Busch Cos., Inc.		41,560		2,075,922
PepsiCo, Inc.		96,701		4,794,436


				6,870,358



Healthcare (8.4%)
Aetna, Inc.		22,900		2,175,500
Amgen, Inc. (b)		45,808		2,601,894
Biogen Idec, Inc. (b)		42,220		2,455,515
Gilead Sciences, Inc. (b)		56,340		1,951,054
Johnson & Johnson		70,030		4,088,351
St. Jude Medical, Inc. (b)		41,630		3,187,609
UnitedHealth Group, Inc.		65,640		4,752,337


				21,212,260



Hotels & Casinos (2.9%)
Marriott International, Inc., Class A		95,410		5,198,891
MGM Mirage (b)		37,800		2,033,640


				7,232,531



Human Resources (0.7%)
Manpower, Inc.		38,950		1,762,488



Instruments (0.8%)
Fisher Scientific International, Inc. (b)		33,780		1,937,621



Insurance (1.4%)
American International Group, Inc.		57,853		3,512,256



Manufacturing (8.7%)
3M Co.		32,596		2,528,472
American Standard Cos., Inc. (b)		47,300		1,729,761
Danaher Corp.		59,042		3,254,985
General Electric Co.		119,352		4,072,290
Ingersoll-Rand Co., Class A		37,890		2,593,192
Joy Global, Inc. (b)		42,450		1,434,386
Textron, Inc.		50,000		3,407,500
Tyco International Ltd.		101,449		3,160,136


				22,180,722

2004 Annual Report 13


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Growth Fund (Continued)

Core Series



Common Stocks (continued)

	Shares or
	Principal Amount		Value

Medical Products (3.7%)
Boston Scientific Corp. (b)		35,400	$	1,249,620
Eyetech Pharmaceuticals, Inc. (b)		30,000		1,273,200
Guidant Corp.		38,200		2,544,884
Varian Medical Systems, Inc.		33,400		1,341,010
Zimmer Holdings, Inc. (b)		38,180		2,962,386


				9,371,100



Multimedia (1.8%)
DreamWorks Animation SKG, Inc.		27,860		1,087,933
Walt Disney Co. (The)		137,640		3,471,281


				4,559,214



Oil & Gas (2.1%)
EOG Resources, Inc.		18,970		1,262,643
GlobalSantaFe Corp.		44,000		1,298,000
Nabors Industries Ltd. (b)		38,950		1,913,224
Questar Corp. (b)		18,400		883,200


				5,357,067



Retail (11.8%)
Best Buy Co., Inc.		35,350		2,093,427
Costco Wholesale Corp. (b)		43,900		2,104,566
CVS Corp.		59,550		2,588,043
Dollar General Corp.		74,300		1,430,275
Home Depot, Inc.		63,865		2,623,574
Kohl’s Corp. (b)		96,250		4,885,650
Lowe’s Cos., Inc.		96,018		5,403,894
Pacific Sunwear of California, Inc. (b)		74,750		1,752,140
Target Corp.		89,505		4,477,040
Wal-Mart Stores, Inc.		47,698		2,571,876


				29,930,485



Semiconductors (6.7%)
Advanced Micro Devices, Inc. (b)		135,290		2,275,578
Fairchild Semiconductor Corp., Class A (b)		62,250		894,533
Lam Research Corp. (b)		79,650		2,073,290
Marvell Technology Group Ltd. (b)		35,500		1,014,235
Novellus Systems, Inc. (b)		76,950		1,993,775
QLogic Corp. (b)		120,520		3,916,899
Texas Instruments, Inc.		192,950		4,717,627


				16,885,937



Telecommunications (5.6%)
Ericsson (L.M.) ADR-SE (b)		67,830		1,960,965
Juniper Networks, Inc. (b)		146,900		3,909,010
Motorola, Inc.		140,120		2,418,471
Nextel Communications, Inc. (b)		82,586		2,187,703
QUALCOMM, Inc.		91,966		3,845,098


				14,321,247



Transportation (0.6%)
Ryder System, Inc.		32,830		1,644,783


Total Common Stocks				254,177,229


Commercial Paper (0.5%)
Asset Backed Securities (0.5%)
Allstate Corp., 0.00%, 11/01/04	$	1,219,000		1,219,000


Total Commercial Paper				1,219,000


Short-Term Securities Held as Collateral for Securities Lending (4.0%)
Pool of short-term securities for Gartmore Mutual Funds-footnote 3 (Securities Lending)		10,149,468		10,149,468


Total Short-Term Securities Held as Collateral for Securities Lending				10,149,468


Total Investments (Cost $254,775,940) (a) — 104.7%				265,545,697
Liabilities in excess of other assets — (4.7)%				(11,993,810)


NET ASSETS — 100.0%			$	253,551,887


(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

SE Sweden

See notes to financial statements.

14 Annual Report 2004

Core Series


	Gartmore Large Cap Value Fund

For the annual period ended Oct. 31, 2004, the Gartmore Large Cap Value Fund returned 13.92% (Class A at NAV) versus 15.45% for its benchmark, the Russell 1000® Value Index. For broader comparison, the average return for the Fund’s Lipper peer category of Large-Cap Value Funds was 11.58%.

The Fund’s strategy continues to be focused on delivering competitive large-cap value performance through the consistent use of quantitative stock selection and portfolio construction techniques. Because large-cap companies are highly visible and well followed by analysts, it is difficult to add value through traditional methods alone. Our approach is to use a dynamic model, with factor weightings adjusted to reflect current market conditions. Once a company has passed our rigorous quantitative process, we overlay a fundamental review, during which we reaffirm our conviction about a company’s prospects. Then, on an ongoing basis, we utilize our quantitative discipline in constructing and managing the portfolio to eliminate unwanted risk.

Strong stock selection was the main driver of performance, particularly in the consumer staples, materials and utilities sectors. Costco Wholesale Corp. contributed 1.1%, Archer Daniels Midland Co. contributed 1.1%, Monsanto Co. contributed 1.3% and Edison International contributed 1.1% were standout stock performers for the fiscal year. However, stock selection with a negative impact on performance was exhibited in the financials, technology and telecommunications sectors. St. Paul Travelers, Maxtor Corp. (maker of digital storage products), Cypress Semiconductor Corp. and CenturyTel, Inc. (a rural local-exchange carrier) were the biggest detriments to portfolio performance. Three of these four positions were sold by fiscal year-end.

The Fund is positioned to perform in a stock market that rewards investing in undervalued companies that are experiencing improving financial fundamentals. For the past several years, the market has seemed to waffle between a speculative and a value-sensitive orientation. It is our view that in 2005, the emerging trend of individual company fundamentals being rewarded by the market should continue. With the economy in a recovery mode, the U.S. presidential election cycle completed and geopolitical tensions appearing to calm, investors are likely to focus on company-specific issues, which should return earnings-based factors to the fore.

Portfolio Manager: Peter Cahill


	Class A: NPVAX
	Class B: NLVBX
	Class C: NLVAX
	Class R: GLVRX

2004 Annual Report 15

Core Series

Gartmore Large Cap Value Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One		Five
		year		year		Inception¹


Class A	without sales charge²		13.92%		4.66%		4.53%
	with sales charge³		7.34%		3.43%		3.51%

Class B	without sales charge²		13.25%		3.98%		3.73%
	with sales charge⁴		8.25%		3.63%		3.59%

Class C⁵	without sales charge²		13.25%		4.01%		3.77%
	with sales charge⁶		12.25%		4.01%		3.77%

Class R^7,8			13.71%		4.08%		3.82%

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 November 2, 1998.

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 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 from the one year return 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 (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 will invest in the same portfolio of securities as Class B shares.

⁸	Not subject to any sales charges.

Performance of a $10,000 Investment

LOGO


	Class A (A 5.75% front-end
	sales charge was deducted.)		Russell 1000 Value		CPI

Nov 2, 98		9425		10000		10000
Oct 31, 99		9789		11653		10256
Oct 31, 00		10581		12295		10610
Oct 31, 01		9727		10837		10835
Oct 31, 02		8951		9751		11055
Oct 31, 03		10792		11981		11280
Oct 31, 04		12295		13833		11595

Comparative performance of $10,000 invested in Class A shares of the Gartmore Large Cap Value Fund, the Russell 1000 Value Index (Russell 1000 Value)(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 1000 Value is an unmanaged index of large capitalization value securities of U.S. companies included in the Russell 1000 Value Index.

(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 Large Cap Value Fund

Shareholder Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


			Beginning		Ending
			Account Value		Account Value		Expenses Paid		Annualized
Large Cap Value Fund			5/1/04		10/31/04		During Period*		Expense Ratio


Class A	Actual		$	1,000	$	1,056	$	7.18		1.39%
	Hypothetical	¹	$	1,000	$	1,018	$	7.08		1.39%

Class B	Actual		$	1,000	$	1,053	$	10.32		2.00%
	Hypothetical	¹	$	1,000	$	1,015	$	10.18		2.00%

Class C	Actual		$	1,000	$	1,053	$	10.32		2.00%
	Hypothetical	¹	$	1,000	$	1,015	$	10.18		2.00%

Class R	Actual		$	1,000	$	1,056	$	7.44		1.44%
	Hypothetical	¹	$	1,000	$	1,018	$	7.33		1.44%


*	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 17

Gartmore Large Cap Value Fund

Core Series


	Portfolio Summary
	(October 31, 2004)


Asset Allocation


Common Stocks			99.1%
Repurchase Agreements			0.8%
Other Investments*			1.2%
Other Liabilities in excess of Assets**			-1.1%

			100.0%


*	Includes value of collateral received from securities lending.

**	Includes value of collateral owed from securities lending.


Top Industries


Diversified Financials			13.7%
Oil & Gas			11.8%
Banks			10.4%
Electric Utilities			6.1%
Diversified Telecommunication Services			5.6%
Media			4.9%
Multi-Sector Companies			4.8%
Insurance			4.5%
Computers & Peripherals			3.1%
Food & Beverages			2.6%
Other Industries			32.5%

			100.0%


Top Holdings


Citigroup, Inc.			5.2%
Bank of America Corp.			5.0%
Exxon Mobil Corp.			4.9%
General Electric Co.			4.1%
J.P. Morgan Chase & Co.			3.8%
Verizon Communications, Inc.			2.7%
Time Warner, Inc.			2.1%
SBC Communications, Inc.			2.0%
ConocoPhillips			1.9%
Exelon Corp.			1.9%
Other Holdings			66.4%

			100.0%

18 Annual Report 2004

Gartmore Large Cap Value Fund

Statement of Investments

October 31, 2004

Gartmore Large Cap Value Fund



Common Stocks (99.1%)

	Shares or
	Principal Amount			Value

Aerospace & Defense (2.5%)
Northrop Grumman Corp.		6,000		$	310,500
United Technologies Corp.		3,900			361,998


					672,498



Air Freight & Logistics (1.1%)
FedEx Corp.		3,200			291,584



Automobiles (1.0%)
Ford Motor Co.		21,000			273,630



Banks (10.4%)
Bank of America Corp.		29,818			1,335,548
U.S. BanCorp		16,000			457,760
Wachovia Corp.		9,700			477,337
Wells Fargo Co.		8,300			495,676


					2,766,321



Chemicals (1.8%)
E.I. du Pont de Nemours & Co.		3,000			128,610
Monsanto Co.		8,300			354,825


					483,435



Commercial Services & Supplies (0.9%)
H&R Block, Inc.		4,900			232,995



Communications Equipment (0.8%)
Lucent Technologies, Inc. (b)		57,700			204,835



Computers & Peripherals (3.1%)
DST Systems, Inc. (b)		3,300			148,005
Hewlett-Packard Co.		13,200			246,312
International Business Machines Corp.		2,700			242,325
Sun Microsystems, Inc. (b)		43,500			197,055


					833,697



Diversified Financials (13.7%)
Citigroup, Inc.		30,960			1,373,695
Countrywide Credit Industries, Inc.		10,598			338,394
Goldman Sachs Group, Inc.		2,300			226,274
J.P. Morgan Chase & Co.		25,928			1,000,821
Merrill Lynch & Co., Inc.		6,600			356,004
Morgan Stanley Dean Witter & Co.		6,400			326,976


			��		3,622,164



Diversified Materials & Processing (0.9%)
Engelhard Corp.		8,200			232,060



Diversified Telecommunication Services (5.6%)
Bellsouth Corp.		4,700			125,349
Nextel Communications, Inc. (b)		5,100			135,099
SBC Communications, Inc.		20,900			527,934
Verizon Communications, Inc.		18,200			711,620


					1,500,002



Electric Utilities (6.1%)
American Electric Power Co., Inc.		6,100			200,873
Duke Power Co.		12,000			294,360
Edison International		10,000			305,000
Emerson Electric Co.		2,100			134,505
Entergy Corp.		2,800			183,008
Exelon Corp.		12,600			499,212


					1,616,958



Financial-Investment Banker/ Broker (2.5%)
Capital One Financial Corp.		2,000			147,520
Lehman Brothers Holdings, Inc.		3,300			271,095
Suntrust Banks, Inc.		3,400			239,292


					657,907



Food & Beverages (2.6%)
Archer-Daniels-Midland Co.		14,600			282,802
Constellation Brands, Inc. (b)		3,100			121,613
Sara Lee Corp.		12,800			297,984


					702,399



Gas Utilities (0.7%)
Sempra Energy		5,500			184,470



Health Care Providers & Services (1.6%)
Aetna, Inc.		3,200			304,000
PacifiCare Health Systems, Inc. (b)		3,600			128,232


					432,232



Hotels Restaurants & Leisure (1.3%)
McDonald’s Corp.		11,500			335,225



Household Durables (0.9%)
Pulte Homes, Inc.		4,200			230,496



Household Products (0.9%)
Kimberly-Clark Corp.		2,100			125,307
Procter & Gamble Co.		2,000			102,360


					227,667

2004 Annual Report 19


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Large Cap Value Fund (Continued)

Core Series



Common Stocks (continued)

	Shares or
	Principal Amount		Value

Insurance (4.5%)
ACE Ltd.		5,300	$	201,718
Allstate Corp. (The)		9,500		456,854
American International Group, Inc.		2,150		130,527
Hartford Financial Services Group, Inc.		3,000		175,440
St. Paul Travelers Cos., Inc. (The)		6,810		231,268


				1,195,807



Machinery (1.9%)
Deere & Co.		4,200		251,076
Paccar, Inc.		3,850		266,844


				517,920



Media (4.9%)
Gannett Co., Inc.		2,600		215,670
McGraw-Hill Cos., Inc. (The)		3,000		258,750
Time Warner, Inc. (b)		32,800		545,792
Walt Disney Co. (The)		11,700		295,074


				1,315,286



Metals & Mining (1.2%)
United States Steel Corp.		8,900		326,808



Multi-Sector Companies (4.8%)
General Electric Co.		32,000		1,091,840
Textron, Inc.		2,500		170,375


				1,262,215



Multiline Retail (0.9%)
Federated Department Stores, Inc.		4,800		242,160



Oil & Gas (11.8%)
Amerada Hess Corp.		3,600		290,556
ChevronTexaco Corp.		8,600		456,316
ConocoPhillips		6,000		505,860
Exxon Mobil Corp.		26,400		1,299,408
Marathon Oil Corp.		8,400		320,124
Valero Energy Corp.		5,800		249,226


				3,121,490



Paper & Forest Products (1.1%)
Georgia Pacific Corp.		8,400		290,556



Personal Products (0.4%)
Avon Products, Inc.		3,000		118,650



Pharmaceuticals (2.0%)
Bristol-Myers Squibb Co.		6,400		149,952
Merck & Co., Inc.		8,400		263,004
Wyeth		3,000		118,950


				531,906



Real Estate (1.4%)
General Growth Properties, Inc.		10,900		359,591



Rental Auto/ Equipment (0.6%)
Rent-A-Center, Inc. (b)		6,300		151,137



Retail (1.7%)
Costco Wholesale Corp.		6,000		287,640
V.F. Corp.		2,900		156,107


				443,747



Road & Rail (0.6%)
Union Pacific Corp.		2,700		170,019



Semiconductors (0.6%)
Agilent Technologies, Inc. (b)		6,200		155,372



Software (1.3%)
Microsoft Corp.		12,000		335,880



Tobacco (1.0%)
Altria Group, Inc.		5,600		271,376


Total Common Stocks				26,310,495


Repurchase Agreements (0.8%)
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $93,367 (Fully collateralized by U.S. Treasury Notes and U.S. Agency Securities)	$	93,353		93,353
Nomura Securities, 1.75% dated 10/29/04, due 11/01/04, repurchase price $130,456 (Fully collateralized by AA Corporate Bonds and U.S. Agency Securities)		130,437		130,437


Total Repurchase Agreements				223,790

20 Annual Report 2004



Warrants (0.0%)

	Shares or
	Principal Amount		Value

Real Estate (0.0%)
General Properties Warrants, 11/09/04		1,090	$	83


Total Warrants				83



Short-Term Securities Held as Collateral for Securities Lending (1.2%)
Pool of short-term securities for Gartmore Mutual Funds-footnote 3 (Securities Lending)	$	338,250		338,250


Total Short-Term Securities Held as Collateral for Securities Lending				338,250


Total Investments (Cost $22,598,206) (a) — 101.1%				26,872,618
Liabilities in excess of other assets — (1.1)%				(299,827)


NET ASSETS — 100.0%			$	26,572,791


(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.

2004 Annual Report 21


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Large Cap Value Fund (Continued)

Core Series


	Gartmore Nationwide Fund

(Since our last report of April 2004, there has been a portfolio manager change on the Gartmore Nationwide Fund. In analyzing recent underperformance of the Fund, it was determined that it would be beneficial to the Fund’s long-term performance to add a portfolio manager who brought stronger valuation themes to the portfolio. As a result, Gary Haubold—a value-oriented manager with more than 20 years of investment experience—assumed co-management responsibilities in September, replacing former co-manager Simon Melluish. William Miller will continue in his role as co-manager, a position that he has held since September 2000.)

For the annual period ended Oct. 31, 2004, the Gartmore Nationwide Fund returned 5.22% (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 Large-Cap Core Funds was 5.98%.

The Gartmore Nationwide Fund utilizes a blend of fundamental and quantitative investment techniques to construct a core portfolio. The fundamental components of the Fund allow for stock selection in both the value and growth styles, while the quantitative sleeve controls risk, adds alpha (risk-adjusted returns largely attributed to the manager’s stock and/or sector selection) and is employed for the implementation of various strategies, such as those built around style, size, and sector tilts. Overall, the Fund emphasizes stock selection as a primary means of adding value.

The Fund underperformed its benchmark during this reporting period, a year (November 2003 thru October 2004) marked by basic commodities leading the market and investors switching between inflationary and deflationary fears. These two key factors were especially prevalent in December, April and August, during which the Fund underperformed the S&P 500. Solid fund performance during the rest of the period was not enough to overcome the negative returns of these months.

This was also a period in which the Fund was positioned in anticipation of robust U.S. economic growth resulting from generous monetary and fiscal policies. We were overweight in the Technology and Consumer Discretionary sectors, which detracted from performance in December 2003. We expected corporations and consumers would spend more because of the relatively young economic recovery and improving corporate profits.

A confluence of events in April 2004 had a negative impact on the Fund: rising oil prices, increased fears of terrorism, rising interest rates and the uncertainty surrounding the U.S. presidential election. The purchase of stocks with good fundamentals and earnings prospects were not rewarded. Our growth orientation, which included an overweight in technology, consumer discretionary, and industrial stocks, hurt performance as the market rotated toward more defensive sectors. Our underweight in the health-care sector also detracted from results in this more defensive-oriented environment.

During July and August we tactically repositioned the portfolio for the short-term by changing sector allocations, increasing the value bias and moving to a slightly smaller capitalization. We also increased the size of the active weights in the portfolio; stock selection remains key to performance. We believe that fundamentals should reassert themselves; energy is a worry but we believe that the economic expansion remains intact. September and October saw performance on the upswing as a result of our portfolio repositioning.

Looking forward to the new fiscal year, we anticipate a recovering economy, stronger corporate profits and interest rates at historically low levels. Our portfolio strategy has evolved in response to the increased importance of China, and we also have increased our weighting in energy and raw materials.

Portfolio Managers: Gary Haubold, CFA and William Miller


	Class A: NWFAX
	Class B: NWFBX
	Class C: GTRCX
	Class D: MUIFX
	Class R: GNWRX
	Institutional Service Class: GTISX
	Institutional Class: GNLIX

22 Annual Report 2004

Gartmore Nationwide Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One		Five		Ten
		year		years		years


Class A¹	without sales charge²		5.22%		-2.28%		10.01%
	with sales charge³		-0.81%		-3.43%		9.92%

Class B¹	without sales charge²		4.59%		-3.02%		9.93%
	with sales charge⁴		-0.41%		-3.28%		9.93%

Class C¹	without sales charge²		4.58%		-2.74%		9.98%
	with sales charge⁵		3.58%		-2.74%		9.98%

Class D⁶	without sales charge²		5.59%		-2.05%		10.03%
	with sales charge⁷		0.82%		-2.95%		9.96%

Class R ^1,8			5.08%		-2.16%		10.02%

Institutional Class^1,8			5.60%		-2.05%		10.03%

Institutional Service Class^1,8			5.60%		-2.03%		10.03%

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), Institutional Service Class shares (1/2/02), Class R shares (10/1/03), and Institutional Class shares (06/29/04). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A, Class B, Class C, Institutional Service Class, Class R shares and Institutional Class 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 from the one year return 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.

Performance of a $10,000 Investment

LOGO


	Class D (A 4.50% front-end
	sales charge was deducted.)		S&P 500 Index		CPI

Oct 31, 94		9550		10000		10000
Oct 31, 95		11387		12632.1		10280.9
Oct 31, 96		14360		15672.1		10588.6
Oct 31, 97		20128		20714.5		10809.4
Oct 31, 98		25307		25271.5		10969.9
Oct 31, 99		27906		31758.9		11250.8
Oct 31, 00		28296		33693.5		11638.8
Oct 31, 01		21726		25302.6		11886.3
Oct 31, 02		19678		21480.5		12127.1
Oct 31, 03		23824		25949.3		12374.6
Oct 31, 04		25155		28391.7		12719.1

Comparative performance of $10,000 invested in Class D shares of the Gartmore Nationwide Fund, S&P 500 Index (S&P 500)(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, expense, 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 23

Gartmore Nationwide Fund

Core Series


	Shareholder Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Nationwide Fund			5/1/04		10/31/04		During Period*			Expense Ratio


Class A	Actual		$	1,000	$	1,017	$	5.68			1.12%
	Hypothetical	¹	$	1,000	$	1,019	$	5.70			1.12%

Class B	Actual		$	1,000	$	1,014	$	9.01			1.78%
	Hypothetical	¹	$	1,000	$	1,016	$	9.06			1.78%

Class C	Actual		$	1,000	$	1,014	$	9.01			1.78%
	Hypothetical	¹	$	1,000	$	1,016	$	9.06			1.78%

Class D	Actual		$	1,000	$	1,019	$	4.21			0.83%
	Hypothetical	¹	$	1,000	$	1,021	$	4.22			0.83%

Class R	Actual		$	1,000	$	1,017	$	6.08			1.20%
	Hypothetical	¹	$	1,000	$	1,019	$	6.11			1.20%

Institutional Service Class	Actual		$	1,000	$	1,019	$	3.96			0.78%
	Hypothetical	¹	$	1,000	$	1,021	$	3.97			0.78%

Institutional Class (a)	Actual		$	1,000	$	993	$	2.63	(b)		0.78%
	Hypothetical	¹	$	1,000	$	1,013	$	2.66	(b)		0.78%


(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.

24 Annual Report 2004

Gartmore Nationwide Fund

Portfolio Summary

(October 31, 2004)


Asset Allocation


Common Stock			97.7%
Commercial Paper			1.3%
Other Investments*			4.3%
Liabilities in excess of Other Assets**			-3.3%

			100.0%


*	Includes value of collateral received from securities lending.

**	Includes value of collateral owed from securities lending.


Top Industries


Manufacturing			9.2%
Oil & Gas			9.1%
Computer Software & Services			8.2%
Financial Services			8.1%
Healthcare			7.4%
Banks			5.5%
Retail			4.9%
Computer Equipment			4.3%
Insurance			3.9%
Telecommunications			3.7%
Other Industries			35.7%

			100.0%


Top Holdings


General Electric Co.			4.3%
Microsoft Corp.			3.8%
ChevronTexaco Corp.			2.4%
Tyco International Ltd.			2.3%
Ingersoll-Rand Co., Class A			2.1%
UnitedHealth Group, Inc.			2.0%
Wachovia Corp.			1.9%
Starwood Hotels & Resorts Worldwide, Inc.			1.8%
Johnson & Johnson			1.8%
Albertson’s, Inc.			1.7%
Other Holdings			75.9%

			100.0%

2004 Annual Report 25

Gartmore Nationwide Fund

Core Series


	Statement of Investments
	October 31, 2004

Gartmore Nationwide Fund



Common Stocks (97.7%)

	Shares or
	Principal Amount		Value

Aerospace/Defense (0.7%)
Northrop Grumman Corp.		229,908	$	11,897,739



Banks (5.5%)
Bank of America Corp.		461,314		20,662,254
Bank of New York Co., Inc. (The)		547,370		17,767,630
Bear Stearns Cos., Inc. (The)		70,300		6,660,925
J.P. Morgan Chase & Co.		382,280		14,756,008
Wachovia Corp.		630,831		31,043,194


				90,890,011



Broadcast Media/Cable Television (1.4%)
Clear Channel Communications, Inc.		197,618		6,600,441
Comcast Corp., Class A (b)		294,026		8,673,768
Viacom, Inc., Class B		230,211		8,400,399


				23,674,608



Business Services (0.3%)
First Data Corp.		113,179		4,672,029



Cable Television (0.3%)
EchoStar Communications Corp. (b)		148,881		4,707,617



Capital Goods (0.2%)
Parker Hannifin Corp.		49,448		3,492,512



Chemicals (1.1%)
Air Products & Chemicals, Inc.		88,958		4,730,786
Dow Chemical Co.		307,189		13,805,074


				18,535,860



Computer Equipment (4.3%)
Cisco Systems, Inc. (b)		1,333,864		25,623,527
Dell, Inc. (b)		498,024		17,460,721
EMC Corp. (b)		1,204,017		15,495,699
International Business Machines Corp.		134,461		12,067,875


				70,647,822



Computer Software & Services (8.2%)
Affiliated Computer Services, Inc., Class A (b)		89,276		4,870,006
Business Objects S.A. ADR-FR (b)		411,833		10,509,978
Electronic Data Systems Corp.		260,950		5,550,407
Intel Corp.		644,755		14,352,246
Mercury Interactive Corp. (b)		165,500		7,187,665
Microsoft Corp.		2,221,399		62,176,959
NCR Corp. (b)		107,292		6,045,904
Oracle Corp. (b)		1,809,076		22,902,902
Radioshack Corp.		41,166		1,232,098


				134,828,165



Construction Materials (0.4%)
Lafarge Corp.		131,950		6,465,550



Consumer Products (2.3%)
Estee Lauder Co., Inc., Class A		199,140		8,553,063
Fortune Brands, Inc.		130,887		9,531,191
Gillette Co. (The)		254,010		10,536,336
Procter & Gamble Co.		179,430		9,183,227


				37,803,817



Containers (0.2%)
Sealed Air Corp. (b)		62,386		3,090,602



Drugs (2.0%)
Eli Lilly & Co.		178,631		9,808,628
Merck & Co., Inc.		179,410		5,617,327
Pfizer, Inc.		600,712		17,390,613


				32,816,568



Electric-Integrated (0.9%)
Constellation Energy Group		206,650		8,394,123
PG&E Corp. (b)		184,700		5,917,788


				14,311,911



Electronics (1.2%)
Johnson Controls, Inc.		126,310		7,243,879
Microchip Technology, Inc.		429,592		12,995,158


				20,239,037



Financial Services (8.1%)
CIT Group, Inc.		447,949		18,097,140
Citigroup, Inc.		427,627		18,973,810
Countrywide Financial Corp.		466,373		14,891,290
Freddie Mac		90,400		6,020,640
Goldman Sachs Group, Inc.		189,338		18,627,072
MBNA Corp.		349,500		8,957,685
Merrill Lynch & Co., Inc.		150,749		8,131,401
Morgan Stanley		162,471		8,300,643
Northern Trust Corp.		25,427		1,081,665
Prudential Financial, Inc.		126,900		5,897,043
Zions Bancorp		371,324		24,570,509


				133,548,898



Food & Beverage (3.2%)
Anheuser-Busch Cos., Inc		256,123		12,793,344
Archer-Daniels-Midland Co.		598,450		11,591,977
Campbell Soup Co.		621,062		16,669,303
General Mills, Inc.		182,878		8,092,352
Ralcorp Holdings, Inc.		78,084		2,869,587


				52,016,563

26 Annual Report 2004



Common Stocks (continued)

	Shares or
	Principal Amount		Value

Healthcare (7.4%)
Aetna, Inc.		81,220	$	7,715,900
AmerisourceBergen Corp.		103,603		5,702,309
Amgen, Inc. (b)		201,440		11,441,792
Anthem, Inc. (b)		78,000		6,271,200
Bausch & Lomb, Inc.		95,700		5,833,872
Gilead Sciences, Inc. (b)		238,500		8,259,255
Johnson & Johnson		499,294		29,148,784
St. Jude Medical, Inc. (b)		111,300		8,522,241
Triad Hospitals, Inc. (b)		220,750		7,291,373
UnitedHealth Group, Inc.		444,203		32,160,297


				122,347,023



Hotels/Motels (1.8%)
Starwood Hotels & Resorts Worldwide, Inc.		614,826		29,345,645



Instruments-Controls (0.4%)
Thermo Electron Corp. (b)		252,427		7,320,383



Insurance (3.9%)
Allstate Corp. (The)		382,638		18,401,062
American International Group, Inc.		439,368		26,674,032
Lincoln National Corp.		191,343		8,380,823
MetLife, Inc.		260,424		9,987,260


				63,443,177



Manufacturing (9.2%)
AU Optronics Corp. ADR-TW		369,376		3,878,448
Danaher Corp.		148,339		8,177,929
General Electric Co.		2,065,757		70,483,628
Ingersoll-Rand Co., Class A		496,216		33,961,023
Tyco International Ltd.		1,193,249		37,169,706


				153,670,734



Metals (1.3%)
Alcoa, Inc.		273,102		8,875,815
Phelps Dodge Corp.		143,423		12,555,249


				21,431,064



Multimedia (1.4%)
DreamWorks Animation SKG, Inc. (b)		13,600		531,080
Time Warner, Inc. (b)		778,060		12,946,919
Walt Disney Co. (The)		350,646		8,843,292


				22,321,291



Natural Gas (0.9%)
ONEOK, Inc.		255,000		6,839,100
Sempra Energy		215,070		7,213,448


				14,052,548



Office Equipment & Supplies (0.3%)
Xerox Corp. (b)		356,400		5,264,028



Oil & Gas (9.1%)
Apache Corp.		359,529		18,228,120
BJ Services Co.		183,120		9,339,120
ChevronTexaco Corp.		738,334		39,176,002
ConocoPhillips		139,918		11,796,487
Exxon Mobil Corp.		307,433		15,131,852
Nabors Industries Ltd. (b)		375,434		18,441,318
Schlumberger Ltd.		260,730		16,410,346
Sunoco, Inc.		67,651		5,030,528
Transocean Sedco Forex, Inc. (b)		230,212		8,114,973
Williams Cos., Inc. (The)		673,497		8,425,447


				150,094,193



Paper & Forest Products (2.4%)
Boise Cascade Corp.		393,639		11,620,223
Georgia Pacific Corp.		203,300		7,032,147
International Paper Co.		543,010		20,911,315


				39,563,685



Pharmaceuticals (0.5%)
Shire Pharmaceuticals Group PLC ADR-UK		305,248		8,669,043



Railroads (1.3%)
Burlington Northern Santa Fe Corp.		202,140		8,451,473
Norfolk Southern Corp.		363,860		12,353,047


				20,804,520



Real Estate (0.6%)
SL Green Realty Corp.		172,450		9,453,709



Restaurants (1.5%)
McDonald’s Corp.		830,538		24,210,183



Retail (4.9%)
Coach, Inc. (b)		203,784		9,502,448
Costco Wholesale Corp.		157,300		7,540,962
Dollar General Corp.		426,925		8,218,306
Federated Department Stores, Inc.		155,783		7,859,252
Home Depot, Inc.		217,437		8,932,312
Kohl’s Corp. (b)		167,030		8,478,443
Target Corp.		226,766		11,342,835
Wal-Mart Stores, Inc.		351,812		18,969,704


				80,844,262



Retail/Food & Drug (1.7%)
Albertson’s, Inc.		1,229,170		28,037,368



Semiconductors (0.5%)
Texas Instruments, Inc.		311,020		7,604,439



Steel (0.1%)
United States Steel Corp.		30,064		1,103,950

2004 Annual Report 27


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Nationwide Fund (Continued)

Core Series



Common Stocks (continued)

	Shares or
	Principal Amount		Value

Telecommunications (3.7%)
Juniper Networks, Inc. (b)		414,501	$	11,029,871
Motorola, Inc.		302,800		5,226,328
QUALCOMM, Inc.		134,754		5,634,065
Qwest Communications International, Inc. (b)		3,749,753		12,824,154
SBC Communications, Inc.		295,649		7,468,094
Sprint Corp.		365,210		7,651,150
Telephone & Data Systems, Inc.		68,435		5,125,782
Verizon Communications, Inc.		167,050		6,531,655


				61,491,099



Tobacco (1.2%)
Altria Group, Inc		411,131		19,923,408



Transportation (2.3%)
FedEx Corp.		81,549		7,430,745
J.B. Hunt Transport Services, Inc.		347,502		14,198,932
Ryder System, Inc.		153,400		7,685,340
Southwest Airlines Co.		536,148		8,455,054


				37,770,071



Travel (0.5%)
Royal Caribbean Cruises Ltd.		191,590		8,928,094



Utilities (0.5%)
TXU Corp.		130,457		7,986,578


Total Common Stocks				1,609,319,804



Commercial Paper (1.3%)

	Shares or
	Principal Amount		Value

Asset Backed Securities (0.9%)
Allstate Corp., 1.85%, 11/01/04	$	15,126,000		15,126,000


Financial Services (0.4%)
Household Finance Co., 1.85%, 11/01/04		6,000,000		6,000,000


Total Commercial Paper				21,126,000


Short-Term Securities Held as Collateral for Securities Lending (4.3%)
Pool of short-term securities for Gartmore Mutual Funds-footnote 3 (Securities Lending)		70,993,578		70,993,578


Total Short-Term Securities Held as Collateral for Securities Lending				70,993,578


Total Investments (Cost $1,617,244,729) (a) — 103.3%				1,701,439,382
Liabilities in excess of other assets — (3.3)%				(55,216,048)


NET ASSETS — 100.0%			$	1,646,223,334


(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

TW Taiwan

UK United Kingdom

See notes to financial statements.

28 Annual Report 2004

Core Series


	Gartmore Mid Cap Growth Fund

For the annual period ended Oct. 31, 2004, the Gartmore Mid Cap Growth Fund returned 5.44% (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%.

Several factors contributed to the Fund’s performance during the period, including our decision to overweight the energy sector by 1.50%. Increased global demand, exemplified by China in particular, the economic pickup in the United States, and the supply worries created by the “war on terror” also all helped to drive energy prices to record highs. In addition, our equal weighting in the information technology sector, which is the largest component of the Index, added 0.15% of outperformance. While a number of our stock selections—such as Research In Motion Ltd and InfoSpace, Inc.—contributed positively to the Fund’s performance during the period, we also held some underperformers, such as Vitesse Semiconductor Corp. and VERITAS Software Corp. Although we sold our positions in Vitesse and VERITAS, we expect to increase our exposure to semiconductor and software names when the industry-related issues become less risky. Another positive contributor to Fund performance was our stock selection in the consumer discretionary sector, including Penn National Gaming, Inc. which contributed 1.33% to Fund performance. In addition, another long-term holding in this sector, Coach, Inc., added 0.47% to Fund performance.

The Fund’s relative underperformance during the period was due primarily to our disappointing stock selection within the health-care sector. This underperformance, however, appears to be confined to one sector and one factor—stock selection, which makes the problem easier to solve. Of the Fund’s 15 worst-performing stocks during the period, seven were health-care names. Although the various reasons are stock-specific—a missed earnings number, a product delay, a regulatory change—we are confident that we can refocus our efforts on finding high-quality stocks. In some cases, we have determined that the underperformers are battling short-term issues, and we have held onto the stocks; in other cases, we have sold these stocks.

The current investment environment continues to present problems as well as opportunities. From a macroeconomic perspective, the economy is slowing to a more normalized growth curve and, therefore, corporate profits are not expected to be as strong during the next 12 months as these have been this past year. 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 this as our working backdrop, we believe that the next 12 months will turn out to be a stock-pickers market, because the major indexes are likely to produce modest gains. We most likely will continue to overweight the energy sector and will work to correct the mistakes in the health-care sector. The information technology sector will continue to be a focus because of this sector’s importance to the benchmark, and we will strive to maintain the Fund’s strong performance in the consumer discretionary sector.

Portfolio Manager: Robert Glise


	Class A: GMCAX
	Class B: GCPBX
	Class C: GCPCX
	Class R: GMCRX
	Institutional Class: GMCGX

2004 Annual Report 29

Core Series

Gartmore Mid Cap Growth Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One year		Inception¹


Class A²	without sales charge³		5.44%		19.90%
	with sales charge⁴		-0.59%		16.54%

Class B²	without sales charge³		4.70%		19.50%
	with sales charge⁵		-0.30%		18.30%

Class C²	without sales charge³		4.70%		19.50%
	with sales charge⁶		3.70%		19.50%

Class R^2,7			5.06%		19.78%

Institutional Service Class⁷			5.73%		20.14%

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 October 1, 2002.

²	These returns included performance based on the Fund’s Institutional Service Class shares, which was achieved prior to the creation of Class A shares (3/5/03), Class B and Class C shares (8/21/03), and Class R shares (10/1/03). Excluding the effects 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 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 fees were reflected, the performance for Class A, Class B, Class C and Class R 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	A CDSC of 1.00% was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase.

⁷	Not subject to any sales charges.

Performance of a $10,000 Investment

LOGO


	Institutional Class		Russell MidCap Growth		CPI

Oct 1, 02		10000		10000		10000
Oct 31, 02		10260		10775		10017
Oct 31, 03		13860		15009		10221
Oct 31, 04		14654		16324		10506

Comparative performance of $10,000 invested in the Institutional Class shares the Gartmore MidCap Growth Fund, Russell MidCap Growth Index (Russell MidCap Growth)(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 MidCap Growth— an unmanaged index of the stock of medium-size 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-size 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.

30 Annual Report 2004

Gartmore Mid Cap Growth Fund

Shareholder Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)



			Beginning		Ending		Expenses Paid		Annualized
Mid Cap Growth Fund			Account Value		Account Value		During Period*		Expense Ratio
			5/1/04		10/31/04


Class A	Actual		$	1,000	$	1,033	$	7.15		1.40%
	Hypothetical	¹	$	1,000	$	1,018	$	7.13		1.40%

Class B	Actual		$	1,000	$	1,028	$	10.96		2.15%
	Hypothetical	¹	$	1,000	$	1,014	$	10.94		2.15%

Class C	Actual		$	1,000	$	1,028	$	10.96		2.15%
	Hypothetical	¹	$	1,000	$	1,014	$	10.94		2.15%

Class R	Actual		$	1,000	$	1,031	$	7.97		1.56%
	Hypothetical	¹	$	1,000	$	1,017	$	7.94		1.56%

Institutional Class	Actual		$	1,000	$	1,034	$	5.88		1.15%
	Hypothetical	¹	$	1,000	$	1,019	$	5.85		1.15%


*	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 31

Gartmore Mid Cap Growth Fund

Core Series


	Portfolio Summary
	(October 31, 2004)


Asset Allocation


Common Stock			97.8%
Repurchase Agreements			1.4%
Other Assets in excess of Liabilities			0.8%

			100.0%


Top Industries


Computer Software & Services			15.2%
Retail			10.4%
Oil & Gas			7.7%
Semiconductors			6.3%
Healthcare			6.1%
Telecommunications			5.4%
Medical Products			4.7%
Financial Services			4.4%
Electronics			4.0%
Consumer Products			3.9%
Other Industries			31.9%

			100.0%


Top Holdings


L-3 Communications Holdings, Inc.			3.3%
Advanced Medical Optics, Inc.			2.4%
Investors Financial Services Corp.			2.4%
Williams Sonoma, Inc.			2.4%
Manpower, Inc.			2.2%
Amphenol Corp., Class A			2.0%
Research in Motion Ltd. ADR — CA			2.0%
Amdocs Ltd.			1.9%
ACE Ltd.			1.9%
XTO Energy, Inc.			1.8%
Other Holdings			77.7%

			100.0%

32 Annual Report 2004

Gartmore Mid Cap Growth Fund

Statement of Investments

October 31, 2004

Gartmore Mid Cap Growth Fund



Common Stocks (97.8%)

	Shares or
	Principal Amount		Value

Automotive (1.2%)
O’Reilly Automotive, Inc. (b)		920	$	39,615



Banks (3.1%)
City National Corp.		650		44,785
Zions Bancorp		920		60,876


				105,661



Business Services (3.8%)
Corporate Executive Board Co.		850		54,103
Manpower, Inc.		1,630		73,757


				127,860



Chemicals (1.1%)
Sigma-Aldrich Corp.		700		38,948



Commercial Services (1.4%)
Alliance Data Systems Corp. (b)		1,140		48,199



Communication Equipment (3.3%)
L-3 Communications Holdings, Inc.		1,680		110,762



Computer Software & Services (15.2%)
Activision, Inc. (b)		3,050		44,164
CACI International, Inc., Class A (b)		670		40,850
Cognos Inc. ADR — CA (b)		1,160		45,832
DST Systems, Inc. (b)		840		37,674
Eresearch Technology, Inc. (b)		290		3,390
Factset Research Systems, Inc.		510		25,418
Fiserv, Inc. (b)		1,150		40,871
Henry (Jack) & Associates, Inc.		2,590		48,278
InfoSpace, Inc. (b)		740		38,850
Mercury Interactive Corp. (b)		980		42,561
Navteq Corp. (b)		1,000		40,310
Research in Motion Ltd. ADR — CA (b)		760		67,031
VERITAS Software Corp. (b)		1,840		40,259


				515,488



Construction (2.3%)
D.R. Horton, Inc.		1,435		43,050
Terex Corp. (b)		940		35,720


				78,770



Consumer Products (3.9%)
Choicepoint, Inc. (b)		1,140		47,458
Church & Dwight, Inc.		1,620		44,096
Education Management Corp. (b)		980		26,284
Mohawk Industries Co. (b)		160		13,613


				131,451



Containers (1.4%)
Ball Corp.		1,220		48,617



Electronics (4.0%)
Amphenol Corp., Class A (b)		2,020		69,347
Cabot Microelectronics Corp. (b)		870		31,346
Jabil Circuit, Inc. (b)		1,480		35,979


				136,672



Financial Services (4.4%)
Ameritrade Holdings Corp. (b)		2,710		35,284
Investors Financial Services Corp.		2,100		80,829
New Century Financial Corp.		600		33,090


				149,203



Gaming & Leisure (1.5%)
Penn National Gaming, Inc. (b)		1,190		49,421



Healthcare (6.1%)
Charles River Laboratories International, Inc. (b)		920		43,047
Health Management Associates, Inc., Class A		1,860		38,428
Impax Laboratories, Inc. (b)		1,900		28,044
IVAX Corp. (b)		1,212		21,937
Martek Biosciences Corp. (b)		600		28,234
NBTY, Inc. (b)		1,700		46,817


				206,507



Insurance (1.9%)
ACE Ltd.		1,680		63,941



Medical — Drugs (1.1%)
Axcan Pharma, Inc. (b)		2,490		37,674



Medical Products (4.7%)
Invitrogen Corp. (b)		880		50,952
Kinetic Concept, Inc. (b)		721		35,927
Millipore Corp. (b)		750		34,493
ResMed, Inc. (b)		830		39,010


				160,382



Motion Pictures & Services (0.3%)
DreamWorks Animation SKG, Inc. (b)		270		10,544



Oil & Gas (7.7%)
B.J. Services Co.		760		38,760
EOG Resources, Inc.		920		61,235
Kinder Morgan, Inc.		920		59,220
Patterson-UTI Energy, Inc.		2,160		41,537
XTO Energy, Inc.		1,835		61,253


				262,005



Optical Supplies (2.4%)
Advanced Medical Optics, Inc. (b)		2,110		82,501



Restaurants (1.1%)
Applebee’s International, Inc.		1,630		37,278

2004 Annual Report 33


	Statement of Investments (Continued)
	October 31, 2004 (Continued)

Gartmore Mid Cap Growth Fund (Continued)

Core Series



Common Stocks (continued)

	Shares or
	Principal Amount		Value

Retail (10.4%)
Bed, Bath & Beyond, Inc. (b)		1,050	$	42,830
Coach, Inc. (b)		1,140		53,158
Dollar Tree Stores, Inc. (b)		1,080		31,212
Radioshack Corp.		1,530		45,793
Regis Corp.		1,080		46,224
Staples, Inc.		1,840		54,721
Williams Sonoma, Inc. (b)		2,110		80,538


				354,476



Scientific & Technical Instruments (0.9%)
Waters Corp. (b)		730		30,142



Security & Commodity Exchanges (1.7%)
Chicago Mercantile Exchange		330		57,991



Semiconductors (6.3%)
KLA-Tencor Corp. (b)		540		24,586
Marvel Technology Group Ltd. (b)		1,820		51,997
QLogic Corp. (b)		1,630		52,975
Semtech Corp. (b)		1,410		29,441
Tessera Technologies, Inc. (b)		1,910		53,347


				212,346



Telecommunications (5.4%)
ADC Telecommunications, Inc. (b)		11,760		25,990
Amdocs Ltd. (b)		2,550		64,133
Comverse Technology, Inc. (b)		2,760		56,966
NII Holdings, Inc. (b)		800		35,416


				182,505



Waste Disposal (1.2%)
Stericycle, Inc. (b)		920		41,704


Total Common Stocks				3,320,663


Repurchase Agreements (1.4%)
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $19,664 (Fully collateralized by Treasury Notes and U.S. Agency Securities)	$	19,661		19,661
Nomura Securities, 1.75% dated 10/29/04, due 11/01/04, repurchase price $27,475 (Fully collateralized by AA Corporate Bonds and U.S. Agency Securities)		27,471		27,471


Total Repurchase Agreements				47,132


Total Investments (Cost $2,967,943) (a) — 99.2%				3,367,795
Other assets in excess of liabilities — 0.8%				26,849


NET ASSETS — 100.0%			$	3,394,644


(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.

34 Annual Report 2004

Core Series


	Gartmore Small Cap Fund

For the annual period ended Oct. 31, 2004, the Gartmore Small Cap Fund returned 15.33% (Class A at NAV) versus 11.73% for the Fund’s benchmark, the Russell® 2000 Index. For broader comparison, the average return for the Fund’s Lipper peer category of Small-Cap Core Funds was 12.93%.

During a series of rapidly shifting economic expectations during the annual period, we attempted to position the Fund to benefit from those shifts. At the beginning of the period, the economy was growing nicely but with negligible job growth, hence the many references to the “jobless recovery.” Subsequently, with gross domestic product growth continuing to slow, the government reported a series of strong employment numbers in the spring, and suddenly the prospect of rising short-term interest rates appeared much closer on the horizon. In the technology sector, concerns about weak pricing and excess inventories kept share prices on the defensive during the spring and much of the summer.

Flexibility in the Fund’s technology weighting was one factor that helped performance. We moved the Fund from an overweighting at the beginning of 2004 to an underweighting as technology weakened in the spring. We then increased the Fund’s exposure to an overweighting again in August. Overall, these moves were beneficial and fit well with our strategy of trying to take advantage of the market’s excesses of greed and fear. Other helpful factors included overweightings in energy and materials. Looking at individual holdings, software provider webMethods, Inc.; chemical stock Hercules Inc.; oil driller Grey Wolf, Inc.; and industrial gas distributor Airgas, Inc. all contributed to performance.

Conversely, stock selection in health care was problematic. BioLase Technology, Inc., a provider of dental lasers, trended lower for most of the period despite having what we thought was a great product. Unfortunately, the company’s financial results disappointed investors during the period. Adolor Corp., a hybrid biotechnology and pharmaceutical company, fell sharply when one of its most promising drugs produced disappointing results at an advanced stage of testing. Elsewhere, independent power producer Calpine Corp. stumbled when there was lower-than-expected demand for power in the Pacific Northwest due to an unseasonably cool, wet summer.

We are relatively optimistic about 2005 due to the fact that we think the chances are good for a continuation of modest economic growth, low but gradually rising interest rates and ongoing improvement in the employment picture. In addition, we have now put the uncertainty of the U.S. presidential election behind us. Energy prices are seemingly heading lower, and we think that the trend might continue, which could provide an additional boost for the economy and the stock market. In a slower-growth environment, careful stock selection should be rewarded. Given our unique blend of quantitative and fundamental analysis—an approach that we believe in strongly and with which we have considerable experience, we would welcome a stock-picker’s market.

Portfolio Manager: Gary Haubold, CFA, William Gerlach, CFA, and Charles Purcell, CFA


	Class A: GSXAX
	Class B: GSXBX
	Class C: GSXCX
	Class R: GNSRX
	Institutional Service Class: GSXIX
	Institutional Class: GSCIX

2004 Annual Report 35

Core Series

Gartmore Small Cap Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One		Five
		Year		Year		Inception¹


Class A	without sales charge²		15.33%		9.22%		9.72%
	with sales charge³		8.73%		7.94%		8.64%

Class B	without sales charge²		14.57%		8.51%		9.04%
	with sales charge⁴		9.57%		8.22%		8.93%

Class C⁵	without sales charge²		14.62%		8.55%		9.08%
	with sales charge⁶		13.62%		8.55%		9.08%

Class R ^7,9			15.02%		8.59%		9.11%

Institutional Class^8,9			15.57%		9.43%		9.92%

Institutional Service Class⁹			15.43%		9.40%		9.89%

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 November 2, 1998.

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 effect 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 from the one year return 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 (12/30/03) 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 will invest in the same portfolio of securities as Class B shares.

⁸	These returns until the creation of Institutional Class shares (06/29/04) include the performance of the Fund’s Institutional Service Class 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, such prior performance is similar to what Institutional Class shares would have produced because the Institutional Class shares will invest in the same portfolio of securities as Institutional Service shares.

⁹	Not subject to any sales charges.

Performance of a $10,000 Investment

LOGO


	Class A (A 5.75% front-end
	sales charge was deducted.)		Russell 2000		CPI

Nov 2, 98		9425		10000		10000
Oct 31, 99		10573		11486.8		10256
Oct 31, 00		12503		13486.4		10610
Oct 31, 01		11241		11773.6		10835
Oct 31, 02		10012		10411		11055
Oct 31, 03		14252		14926.3		11280
Oct 31, 04		16437		16677		11595

Comparative performance of $10,000 invested in Class A shares of the Gartmore Small Cap Fund, the 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 approximately 2000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies.

(b)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

36 Annual Report 2004

Gartmore Small Cap Fund

Shareholder Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

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 Fund			5/1/04		10/31/04		During Period*			Expense Ratio


Class A	Actual		$	1,000	$	1,058	$	8.18			1.58%
	Hypothetical	¹	$	1,000	$	1,017	$	8.04			1.58%

Class B	Actual		$	1,000	$	1,055	$	11.36			2.20%
	Hypothetical	¹	$	1,000	$	1,014	$	11.20			2.20%

Class C	Actual		$	1,000	$	1,055	$	11.37			2.20%
	Hypothetical	¹	$	1,000	$	1,014	$	11.20			2.20%

Class R	Actual		$	1,000	$	1,058	$	8.54			1.65%
	Hypothetical	¹	$	1,000	$	1,017	$	8.40			1.65%

Institutional Service Class	Actual		$	1,000	$	1,059	$	7.51			1.45%
	Hypothetical	¹	$	1,000	$	1,018	$	7.38			1.45%

Institutional Class (a)	Actual		$	1,000	$	1,007	$	4.08	(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)		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 37

Gartmore Small Cap Fund

Core Series


	Portfolio Summary
	(October 31, 2004)


Asset Allocation


Common Stock			98.6%
Repurchase Agreement			1.0%
Other Investments*			24.4%
Liabilities in excess of Other Assets**			-24.0%

			100.0%


*	Includes value of collateral received from securities lending.

**	Includes value of collateral owed from securities lending.


Top Industries


Computer Software & Services			10.0%
Oil & Gas			8.8%
Banking			5.7%
Retail			4.7%
Financial/Miscellaneous			4.1%
Manufacturing			3.6%
Real Estate Investment Trusts			3.2%
Insurance			3.1%
Internet			3.0%
Electronics			3.0%
Other Industries			50.8%

			100.0%


Top Holdings


Dover Downs Gaming and Entertainment, Inc.			1.5%
Airgas, Inc.			1.5%
Advanced Medical Optics, Inc.			1.4%
Compuware Corp.			1.3%
Grey Wolf, Inc.			1.3%
Integrated Device Technology, Inc.			1.3%
P.H. Glatfelter & Co.			1.2%
Platinum Underwriter Holdings, Ltd.			1.2%
Nabors Industries Ltd.			1.2%
Plexus Corp.			1.1%
Other Holdings			87.0%

			100.0%

38 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Small Cap Fund



Common Stocks (98.6%)

	Shares or
	Principal Amount		Value

Airlines (0.5%)
Continental Airlines, Inc., Class B (b)		8,607	$	79,873
FLYi, Inc. (b)		39,910		55,874


				135,747



Apparel (0.6%)
DHB Industries, Inc. (b)		5,506		76,093
Reebok International Ltd.		1,990		73,630


				149,723



Auto Parts & Equipment (2.6%)
ArvinMeritor, Inc.		3,716		69,341
Commercial Vehicle Group, Inc. (b)		15,956		258,008
CSK Auto Corp. (b)		8,990		131,614
Wabash National Corp. (b)		7,783		191,306


				650,269



Banking (5.7%)
ABC Bancorp		2,431		49,447
Dime Community Bancshares		4,375		70,263
First Commonwealth Financial Corp.		5,490		79,715
Franklin Bank Corp. (b)		5,589		92,219
Hudson United Bancorp		2,983		118,723
MAF Bancorp, Inc.		3,335		142,971
NBT Bancorp, Inc.		5,681		131,458
Oriental Financial Group, Inc.		3,988		112,980
Placer Sierra Bankshares (b)		10,388		249,312
Provident Bankshares Corp.		2,175		75,538
Sierra Bancorp		6,884		125,633
Signature Bank (b)		4,343		127,988
Western Sierra Bancorp (b)		1,382		49,434


				1,425,681



Beverages/Alcoholic (0.2%)
Robert Mondavi Corp. (b)		1,136		61,901



Book Publishing (0.2%)
Readers Digest Association		4,192		59,023



Building Materials (0.7%)
RPM, Inc.		10,101		178,081



Business Equipment & Services (0.8%)
Ciber, Inc. (b)		10,095		91,259
John H. Harland Co.		2,722		87,730
Per-Se Technologies, Inc. (b)		1,600		23,344


				202,333



Capital Goods (0.5%)
Kennametal, Inc.		2,637		122,700



Casino Hotels (0.6%)
MTR Gaming Group, Inc. (b)		16,384		147,456



Chemicals (1.5%)
Great Lakes Chemical Corp.		2,984		76,450
Lubrizol Corp.		3,676		127,667
Olin Corp.		9,136		170,844


				374,961



Coal (0.9%)
Arch Coal, Inc.		6,494		211,185



Communication Equipment (0.5%)
Powerwave Technologies, Inc. (b)		8,410		62,823
Titan Corp. (b)		4,835		71,751


				134,574



Computer Software & Services (10.0%)
Borland Software Corp. (b)		8,051		82,442
Compuware Corp. (b)		56,289		325,912
Digital Insight Corp. (b)		8,590		134,519
Digitas, Inc. (b)		12,629		113,661
E.piphany, Inc. (b)		60,736		266,024
Electronics for Imaging, Inc. (b)		4,972		89,695
Eresearch Technology, Inc. (b)		2,000		23,380
Informatica Corp. (b)		9,383		73,281
Intersections, Inc. (b)		7,303		97,824
JDA Software Group, Inc. (b)		3,246		36,453
Mercury Computer Systems, Inc. (b)		4,780		120,719
Micromuse, Inc. (b)		43,594		187,018
Neoware Systems, Inc. (b)		10,247		82,294
NetIQ Corp. (b)		13,715		173,906
Omicell, Inc. (b)		14,068		145,252
Quest Software, Inc. (b)		6,756		99,111
Safeguard Scientifics, Inc. (b)		30,945		51,678
Siebel Systems, Inc. (b)		12,030		114,285
Take-Two Interactive Software, Inc. (b)		3,548		116,942
webMethods, Inc. (b)		17,299		119,882


				2,454,278



Construction & Building Materials (0.4%)
Jacobs Engineering Group, Inc. (b)		2,152		87,651



Consulting Services (0.9%)
Bearingpoint, Inc. (b)		13,230		115,101
Gartner, Inc., Class A (b)		8,057		95,878


				210,979



Consumer Goods & Services (2.9%)
Alderwoods Group, Inc. (b)		3,000		30,390
American Woodmark Corp.		1,963		72,984
Crown Holdings, Inc. (b)		5,611		63,685

2004 Annual Report 39


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Small Cap Fund (Continued)

Core Series



Common Stocks (continued)

	Shares or
	Principal Amount		Value

Consumer Goods & Services (continued)
Department 56, Inc. (b)		7,473	$	112,768
MPS Group, Inc. (b)		8,599		90,547
Playtex Products, Inc. (b)		11,882		74,500
Spherion Corp. (b)		18,692		134,395
Tupperware Corp.		8,717		145,488


				724,757



Drugs (0.8%)
Guilford Pharmaceuticals, Inc. (b)		26,000		117,520
Perrigo Co.		4,300		78,174


				195,694



Education (0.3%)
Corinthian Colleges, Inc. (b)		5,125		73,595



Electronics (3.0%)
Agere Systems, Inc. (b)		55,371		66,999
Artesyn Technologies, Inc. (b)		5,914		57,366
Celestica, Inc. (b)		7,663		110,960
Integrated Silicon Solution, Inc. (b)		18,792		141,128
KEMET Corp. (b)		8,461		65,657
LSI Logic Corp. (b)		16,631		75,671
Merix Corp, Inc. (b)		7,158		73,727
Molecular Devices Corp. (b)		600		12,009
Sanmina Corp. (b)		18,551		148,409


				751,926



Energy (3.0%)
Black Hills Corp.		4,513		132,953
Calpine Corp. (b)		94,325		234,869
CMS Energy Corp. (b)		22,196		207,755
KFx, Inc. (b)		8,806		82,248
NRG Energy, Inc. (b)		3,029		84,024


				741,849



Engineering (1.1%)
MTC Technologies, Inc. (b)		2,899		79,215
URS Corp. (b)		6,848		189,005


				268,220



Entertainment (0.4%)
Sinclair Broadcast Group, Inc., Class A		15,582		109,074



Financial/Miscellaneous (4.1%)
Affiliated Managers Group, Inc. (b)		2,674		149,316
CompuCredit Corp. (b)		3,236		61,581
Financial Institutions, Inc.		2,095		55,224
Knight Trading Group, Inc. (b)		10,406		108,118
Piper Jaffray Companies, Inc. (b)		4,172		182,443
Radian Group, Inc.		2,927		140,291
South Financial Group, Inc.		4,296		128,966
Waddell & Reed Financial		4,426		92,990
Zions Bancorporation		1,588		105,078


				1,024,007



Food & Related (1.1%)
B & G Food, Inc. (b)		14,400		213,120
Ralcorp Holding, Inc.		1,381		50,752


				263,872



Gambling (1.5%)
Dover Downs Gaming and Entertainment, Inc.		37,880		380,315



Healthcare (2.6%)
Covance, Inc. (b)		3,708		147,282
Digene Corp. (b)		3,000		75,450
Lincare Holdings, Inc. (b)		4,539		166,853
PSS World Medical, Inc. (b)		11,758		132,454
Techne Corp. (b)		3,600		129,672


				651,711



Hospitals (0.1%)
Triad Hospitals, Inc. (b)		695		22,956



Hotels/Motels (0.9%)
Aztar Corp. (b)		4,102		126,956
La Quinta Corp. (b)		12,271		98,782


				225,738



Insurance (3.1%)
Endurance Specialty Holdings, Ltd.		2,893		95,903
Hilb, Rogal and Hamilton Co.		2,285		72,435
Mercer Insurance Group, Inc. (b)		4,022		47,259
Old Republic International Corp.		6,813		159,083
Platinum Underwriter Holdings, Ltd.		10,106		295,600
ProCentury Corp.		10,101		97,576


				767,856



Internet (3.0%)
Ask Jeeves, Inc. (b)		1,093		28,178
eSPEED, Inc. (b)		7,346		72,358
Interwoven, Inc. (b)		29,231		265,124
Priceline.com, Inc. (b)		3,384		67,477
Radware Ltd. (b)		6,404		158,179
Vignette Corp. (b)		89,410		99,245
WatchGuard Technologies, Inc. (b)		16,361		65,117


				755,678



Machinery (0.8%)
Advanced Energy Industries, Inc. (b)		9,804		96,667
Engineered Support Systems, Inc.		2,135		102,566


				199,233

40 Annual Report 2004



Common Stocks (continued)

	Shares or
	Principal Amount		Value

Manufacturing (3.6%)
Grand Prideco, Inc. (b)		2,719	$	55,903
Harsco Corp.		2,100		101,745
Integrated Device Technology, Inc. (b)		26,327		311,185
P.H. Glatfelter & Co.		24,331		302,434
Timken Co.		5,145		123,480


				894,747



Medical (2.4%)
Adolor Corp. (b)		6,330		74,947
Advanced Medical Optics, Inc. (b)		8,860		346,426
Biolase Technology, Inc.		7,974		54,383
Immucor, Inc. (b)		321		9,903
Kensey Nash Corp. (b)		3,900		111,540
Merit Medical Systems, Inc. (b)		1		10


				597,209



Metals (0.9%)
Century Aluminum Co. (b)		3,544		82,008
International Steel Group, Inc. (b)		2,022		74,672
Schnitzer Steel Industries, Inc.		2,534		71,586


				228,266



Motion Picture & Video Production (0.2%)
Dreamworks Animation SKG, Inc. (b)		1,100		42,955



Networking Products (0.7%)
3Com Corp. (b)		25,610		106,025
Enterasys Networks, Inc. (b)		44,472		62,261


				168,286



Oil & Gas (8.8%)
Airgas, Inc.		15,270		375,643
Cimarex Energy Co. (b)		1,800		64,584
Grey Wolf, Inc. (b)		62,468		323,584
Nabors Industries Ltd. (b)		5,923		290,938
Noble Energy, Inc.		1,670		96,860
Patterson-UTI Energy, Inc.		12,534		241,029
Premor, Inc. (b)		3,311		129,261
Pride International, Inc. (b)		13,975		258,258
Quicksilver Resources, Inc. (b)		3,713		117,442
Varco International, Inc. (b)		6,185		171,201
Williams Cos., Inc. (The)		10,175		127,289


				2,196,089



Paper & Related Products (1.1%)
Bowater, Inc.		3,262		120,172
Rock-Tenn Co., Class A		10,015		155,733


				275,905



Pharmaceuticals (2.8%)
Acadia Pharmaceuticals, Inc. (b)		16,546		121,944
Alnylam Pharmaceuticals, Inc. (b)		45,825		238,794
Biomarin Pharmaceutical, Inc. (b)		8,007		33,069
Dyax Corp. (b)		1,060		6,084
Kos Pharmaceuticals, Inc. (b)		2,500		89,250
Nuvelo, Inc. (b)		21,722		199,408


				688,549



Plastics (0.2%)
Polyone Corp. (b)		7,903		59,826



Radio (1.4%)
Citadel Broadcasting Co. (b)		8,277		120,430
Entercom Communications Corp. (b)		3,014		100,065
Westwood One, Inc. (b)		5,159		119,070


				339,565



Real Estate (2.3%)
CB Richard Ellis Group, Inc., Class A (b)		9,430		244,236
Eagle Hospitality Properties Trust, Inc. (b)		12,665		120,318
Highwood Properties, Inc.		3,885		96,387
Trammell Crow Co. (b)		6,502		100,456


				561,397



Real Estate Investment Trusts (3.2%)
American Financial Realty Trust		10,352		152,174
Friedman, Billings, Ramsey Group, Inc.		4,467		76,564
Global Signal, Inc.		7,706		183,404
Government Properties Trust, Inc.		14,140		141,824
MeriStar Hospitality Corp. (b)		15,386		89,854
New York Mortgage Trust, Inc.		16,067		143,157


				786,977



Retail (4.7%)
AnnTaylor Stores Corp. (b)		5,848		131,346
CBRL Group, Inc.		4,633		167,993
Charming Shoppes, Inc. (b)		10,062		76,773
Insight Enterprises, Inc. (b)		3,546		65,796
J. Jill Group, Inc. (b)		4,186		73,590
Linens ’n Things, Inc. (b)		3,075		74,046
Pacific Sunwear of California, Inc. (b)		5,726		134,217
Pier 1 Imports, Inc.		5,244		94,130
Sports Authority, Inc. (The) (b)		5,140		124,285
Stage Stores, Inc. (b)		393		14,152
The Pantry, Inc. (b)		5,779		132,859
West Marine, Inc. (b)		3,577		87,744


				1,176,931



Semiconductors (2.1%)
Actel Corp. (b)		2,281		34,603
Cypress Semiconductor Corp. (b)		6,364		67,013

2004 Annual Report 41


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Small Cap Fund (Continued)

Core Series



Common Stocks (continued)

	Shares or
	Principal Amount		Value

Semiconductors (continued)
Intersil Corp.		7,553	$	123,265
Mattson Technology, Inc. (b)		14,860		124,675
Novellus Systems, Inc. (b)		3,565		92,369
ON Semiconductor Corp. (b)		21,381		76,972


				518,897



Services (1.9%)
Medicis Pharmaceutical Corp., Class A		1,300		52,871
Plexus Corp. (b)		22,652		280,658
United Rentals, Inc. (b)		8,656		133,735


				467,264



Steel (0.5%)
Steel Dynamics, Inc.		3,722		123,570



Storage Batteries (0.5%)
EnerSys (b)		9,288		122,602



Surgical & Medical Instruments (0.4%)
Foxhollow Technologies, Inc. (b)		1,840		37,867
Vnus Medical Technologies (b)		3,340		50,234


				88,101



Technology (0.8%)
BE Aerospace, Inc. (b)		7,949		68,202
Storage Technology Corp. (b)		4,589		123,995


				192,197



Telecommunications (0.7%)
Cincinnati Bell, Inc. (b)		30,788		104,987
Tetra Technology, Inc. (b)		5,374		70,614


				175,601



Tobacco (0.9%)
DIMON, Inc.		8,412		48,958
Loews Corp. — Carolina Group		6,643		179,759


				228,717



Transportation (1.7%)
Genesee & Wyoming, Inc., Class A (b)		5,815		147,236
Pacer International, Inc. (b)		9,627		170,879
Sirva, Inc. (b)		4,077		97,848


				415,963



Utilities (0.8%)
Allegheny Energy, Inc. (b)		4,381		80,216
Southwestern Energy Co. (b)		2,459		112,967


				193,183



Waste Management (0.7%)
WCA Waste Corp. (b)		19,415		174,735


Total Common Stocks				24,480,555


Repurchase Agreements (1.0%)
CS First Boston, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $105,708 (Fully collateralized by U.S. Treasury Notes and U.S. Agency Securities)	$	105,692		105,692
Nomura Securities, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $147,701 (Fully collateralized by U.S. Agency Securities and AA Corporate Bonds)		147,677		147,677


Total Repurchase Agreements				253,369


Short-Term Securities Held as Collateral for Securities Lending (24.3%)
Pool of short-term securities for Gartmore Mutual Funds — footnote 3 (Securities Lending)		6,036,533		6,036,533


Total Short-Term Securities Held as Collateral for Securities Lending				6,036,533


Total Investments (Cost $30,218,099) (a) — 123.9%				30,770,457
Liabilities in excess of other assets — (23.9%)				(5,943,277)


NET ASSETS — 100.0%			$	24,827,180


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

(b)		Non-income producing securities.

See notes to financial statements.

42 Annual Report 2004

Statements of Assets and Liabilities

October 31, 2004


			Gartmore			Gartmore Large			Gartmore			Gartmore Mid Cap
			Growth Fund			Cap Value Fund			Nationwide Fund			Growth Fund



Assets:
Investments, at value (cost $254,775,940; $22,374,416; $1,617,244,729; $2,920,811 and $29,964,730 respectively)			$	265,545,697		$	26,648,828		$	1,701,439,382		$	3,320,663
Repurchase agreements, at cost				—			223,790			—			47,132

		Total Investments		265,545,697			26,872,618			1,701,439,382			3,367,795

Cash				1,140			—			1,864			—
Interest and dividends receivable				82,996			46,445			1,343,050			717
Receivable for capital shares issued				—			10,000			—			—
Receivable for investments sold				16,545,250			—			28,911,756			50,594
Receivable from adviser				—			2,467			—			3,429
Prepaid expenses and other assets				16,867			13,504			16,652			26,377

		Total Assets		282,191,950			26,945,034			1,731,712,704			3,448,912

Liabilities:
Payable for investments purchased				18,196,480			—			12,700,051			49,985
Payable for return of collateral received for securities on loan				10,149,468			338,250			70,993,578			—
Accrued expenses and other payables Investment advisory fees				127,695			16,652			787,756			2,100
	Fund administration and transfer agent fees			68,296			4,047			350,409			1,196
	Distribution fees			11,517			6,639			124,061			604
	Administrative servicing fees			10,037			2,952			138,873			3
	Other			76,570			3,703			394,642			380

		Total Liabilities		28,640,063			372,243			85,489,370			54,268

Net Assets			$	253,551,887		$	26,572,791		$	1,646,223,334		$	3,394,644

Represented by:
Capital			$	531,180,760		$	23,482,723		$	1,568,031,145		$	2,830,711
Accumulated net investment income (loss)				43			26,172			554,054			—
Accumulated net realized gains (losses) on investment and futures transactions				(288,398,673	)		(1,210,516	)		(6,556,518	)		164,081
Net unrealized appreciation (depreciation) on investments				10,769,757			4,274,412			84,194,653			399,852

Net Assets			$	253,551,887		$	26,572,791		$	1,646,223,334		$	3,394,644

Net Assets:
Class A Shares			$	30,641,138		$	24,845,846		$	447,883,716		$	1,463,466
Class B Shares				5,817,237			982,344			35,072,931			153,083
Class C Shares				247,780			743,420			989,408			224,060
Class D Shares				216,842,723			—			1,161,933,951			—
Class R Shares				1,067			1,181			1,089			1,114
Institutional Service Class Shares				969			—			968			—
Institutional Class Shares				973			—			341,271			1,552,921

Total			$	253,551,887		$	26,572,791		$	1,646,223,334		$	3,394,644

Shares outstanding (unlimited number of shares authorized)
Class A Shares				5,040,711			2,107,471			23,617,762			103,012
Class B Shares				1,036,236			84,474			1,900,157			10,850
Class C Shares				44,100			64,089			53,640			15,882
Class D Shares				35,124,085			—			61,709,786			—
Class R Shares				174			102			58			78
Institutional Service Class Shares				157			—			51			—
Institutional Class Shares				158			—			18,125			108,838

Total				41,245,621			2,256,136			87,299,579			238,660

Net asset value:
Class A Shares			$	6.08		$	11.79		$	18.96		$	14.21
Class B Shares (a)			$	5.61		$	11.63		$	18.46		$	14.11
Class C Shares (b)			$	5.62		$	11.60		$	18.45		$	14.11
Class D Shares			$	6.17		$	—		$	18.83		$	—
Class R Shares			$	6.15		$	11.64		$	18.83		$	14.18
Institutional Service Class Shares			$	6.19		$	—		$	18.82		$	—
Institutional Class Shares			$	6.17		$	—		$	18.83		$	14.27
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent
Class A Shares			$	6.45		$	12.51		$	20.12		$	15.08
Class D Shares			$	6.46		$	—		$	19.72		$	—

Maximum Sales Charge — Class A Shares				5.75	%		5.75	%		5.75	%		5.75	%

Maximum Sales Charge — Class D Shares				4.50	%		—			4.50	%		—

[Additional columns below]

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


			Gartmore Small
			Cap Fund



Assets:
Investments, at value (cost $254,775,940; $22,374,416; $1,617,244,729; $2,920,811 and $29,964,730 respectively)			$	30,517,088
Repurchase agreements, at cost				253,369

		Total Investments		30,770,457

Cash				205
Interest and dividends receivable				7,084
Receivable for capital shares issued				—
Receivable for investments sold				912,978
Receivable from adviser				—
Prepaid expenses and other assets				13,035

		Total Assets		31,703,759

Liabilities:
Payable for investments purchased				797,590
Payable for return of collateral received for securities on loan				6,036,533
Accrued expenses and other payables Investment advisory fees				22,938
	Fund administration and transfer agent fees			4,891
	Distribution fees			6,213
	Administrative servicing fees			3,190
	Other			5,224

		Total Liabilities		6,876,579

Net Assets			$	24,827,180

Represented by:
Capital			$	21,769,828
Accumulated net investment income (loss)				—
Accumulated net realized gains (losses) on investment and futures transactions				2,504,993
Net unrealized appreciation (depreciation) on investments				552,359

Net Assets			$	24,827,180

Net Assets:
Class A Shares			$	23,023,069
Class B Shares				1,495,580
Class C Shares				179,958
Class D Shares				—
Class R Shares				1,076
Institutional Service Class Shares				7,281
Institutional Class Shares				120,217

Total			$	24,827,180

Shares outstanding (unlimited number of shares authorized)
Class A Shares				1,476,616
Class B Shares				99,403
Class C Shares				11,941
Class D Shares				—
Class R Shares				71
Institutional Service Class Shares				462
Institutional Class Shares				7,634

Total				1,596,127

Net asset value:
Class A Shares			$	15.59
Class B Shares (a)			$	15.04
Class C Shares (b)			$	15.07
Class D Shares			$	—
Class R Shares			$	15.10
Institutional Service Class Shares			$	15.72
Institutional Class Shares			$	15.75
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent
Class A Shares			$	16.54
Class D Shares			$	—

Maximum Sales Charge — Class A Shares				5.75	%

Maximum Sales Charge — Class D Shares				—


(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 43

Core Series


	Statements of Operations
	For the Year Ended October 31, 2004


		Gartmore			Gartmore Large			Gartmore			Gartmore Mid Cap			Gartmore Small
		Growth Fund			Cap Value Fund			Nationwide Fund			Growth Fund			Cap Fund



INVESTMENT INCOME:
Interest income		$	11,188		$	2,058		$	367,184		$	1,647		$	10,785
Dividend income			2,460,225			613,362			26,930,623			11,630			426,347
Income from securities lending			17,509			1,301			208,365			—			67,704

	Total Income		2,488,922			616,721			27,506,172			13,277			504,836

Expenses:
Investment advisory fees			1,725,237			201,770			10,661,161			23,457			457,989
Fund Administration and transfer agent fees			461,978			36,584			2,742,272			7,629			63,688
Distribution fees Class A			70,563			63,209			1,507,625			3,359			57,503
Distribution fees Class B			57,237			8,902			361,248			1,263			14,860
Distribution fees Class C			2,302			7,278			10,124			2,093			1,388
Distribution fees Class R			4			4			4			4			3
Administrative servicing fees Class A			29,447			34,816			568,463			1			31,321
Administrative servicing fees Class D			27,121			—			657,578			—			58,858
Administrative servicing fees Class R			3			3			3			3			2
Registration and filing fees			55,374			38,161			106,134			37,850			37,915
Other			190,490			9,905			826,326			1,515			13,746

	Total expenses before reimbursed expenses		2,619,756			400,632			17,440,938			77,174			737,273
Expenses reimbursed			—			(17,394	)		—			(34,484	)		—

	Total Expenses		2,619,756			383,238			17,440,938			42,690			737,273

Net Investment Income (Loss)			(130,834	)		233,483			10,065,234			(29,413	)		(232,437	)

REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) on investment transactions			40,517,152			2,132,903			198,132,003			165,111			11,039,306
Net realized gains (losses) on futures transactions			—			—			—			—			96,471

Net realized gains (losses) on investment and futures transactions			40,517,152			2,132,903			198,132,003			165,111			11,135,777
Net change in unrealized appreciation/depreciation on investments and futures			(28,125,753	)		1,107,554			(111,442,519	)		39,576			(6,692,971	)

Net realized/unrealized gains (losses) on investments and futures			12,391,399			3,240,457			86,689,484			204,687			4,442,806

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		$	12,260,565		$	3,473,940		$	96,754,718		$	175,274		$	4,210,369

See notes to financial statements.

44 Annual Report 2004

Statements of Changes in Net Assets



	Gartmore Growth Fund						Gartmore Large Cap Value 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)	$	(130,834	)	$	110,446		$	233,483		$	261,015
Net realized gains (losses) on investment and futures transactions		40,517,152			25,154,854			2,132,903			(2,038,274	)
Net change in unrealized appreciation/depreciation on investment and futures transactions		(28,125,753	)		40,500,365			1,107,554			6,270,849

Change in net assets resulting from operations		12,260,565			65,765,665			3,473,940			4,493,590

Distributions to Class A Shareholders from:
Net investment income		—			—			(220,622	)		(261,300	)
Distributions to Class B Shareholders from:
Net investment income		—			—			(2,646	)		(3,027	)
Distributions to Class C Shareholders from:
Net investment income		—			—			(1,900	)		(718	)
Distributions to Class D Shareholders from:
Net investment income		(82,259	)		—			—			—
Distributions to Class R Shareholders from:
From net investment income		—			—			(8	)		—
Distributions to Institutional Services Class Shareholders from:
Net investment income		(28,144	)		—			—			—
Distributions to Institutional Class Shareholders from:
Net investment income		—			—			—			—

Change in net assets from shareholder distributions		(110,403	)		—			(225,176	)		(265,045	)

Change in net assets from capital transactions		(79,970,320	)		(19,236,117	)		(2,476,365	)		(2,665,650	)

Change in net assets		(67,820,158	)		46,529,548			772,399			1,562,895
Net Assets:
Beginning of period		321,372,045			274,842,497			25,800,392			24,237,497

End of period	$	253,551,887		$	321,372,045		$	26,572,791		$	25,800,392

[Additional columns below]

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



	Gartmore Nationwide Fund

	Year Ended			Year Ended
	October 31, 2004			October 31, 2003



FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)	$	10,065,234		$	13,060,423
Net realized gains (losses) on investment and futures transactions		198,132,003			10,166,152
Net change in unrealized appreciation/depreciation on investment and futures transactions		(111,442,519	)		298,209,582


Change in net assets resulting from operations		96,754,718			321,436,157


Distributions to Class A Shareholders from:
Net investment income		(2,015,525	)		(2,254,451	)
Distributions to Class B Shareholders from:
Net investment income		—			(20,408	)
Distributions to Class C Shareholders from:
Net investment income		(458	)		(165	)
Distributions to Class D Shareholders from:
Net investment income		(8,641,837	)		(9,557,017	)
Distributions to Class R Shareholders from:
From net investment income		(2	)		—
Distributions to Institutional Services Class Shareholders from:
Net investment income		(161,778	)		(446,348	)
Distributions to Institutional Class Shareholders from:
Net investment income		(537	) (a)		—


Change in net assets from shareholder distributions		(10,820,137	)		(12,278,389	)


Change in net assets from capital transactions		(344,305,799	)		27,837,495


Change in net assets		(258,371,218	)		336,995,263
Net Assets:
Beginning of period		1,904,594,552			1,567,599,289


End of period	$	1,646,223,334		$	1,904,594,552


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

See notes to financial statements.

2004 Annual Report 45

Core Series


	Statements of Changes in Net Assets



	Gartmore Mid Cap Growth Fund						Gartmore Small Cap 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)	$	(29,413	)	$	(10,070	)	$	(232,437	)	$	(114,576	)
Net realized gains (losses) on investment and futures transactions		165,111			104,565			11,135,777			1,876,334
Net change in unrealized appreciation/depreciation on investment and futures transactions		39,576			320,490			(6,692,971	)		9,480,092


Change in net assets resulting from operations		175,274			414,985			4,210,369			11,241,850


Distributions to Class A Shareholders from:
Net realized gains on investments		(32,733	)		—			(260,898	)		—
Distributions to Class B Shareholders from:
Net realized gains on investments		(3,048	)		—			(17,857	)		—
Distributions to Class C Shareholders from:
Net realized gains on investments		(10,833	)		—			(1,102	)		—
Distributions to Class R Shareholders from:
From net realized gains on investment		(28	)		—			—			—
Distributions to Institutional Services Class Shareholders from:
Net realized gains on investments		—			—			(282,808	)		—
Distributions to Institutional Class Shareholders from:
Net realized gains on investments		(36,735	)		—			—			—


Change in net assets from shareholder distributions		(83,377	)		—			(562,665	)		—


Change in net assets from capital transactions		1,376,384			485,215			(20,059,066	)		2,873,384


Change in net assets		1,468,281			900,200			(16,411,362	)		14,115,234
Net Assets:
Beginning of period		1,926,363			1,026,163			41,238,542			27,123,308


End of period	$	3,394,644		$	1,926,363		$	24,827,180		$	41,238,542

See notes to financial statements.

46 Annual Report 2004

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Gartmore 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
Year Ended October 31, 2000	$	18.35		(0.08	)		(0.84	)		(0.92	)
Year Ended October 31, 2001	$	14.99		(0.05	)		(5.85	)		(5.90	)
Year Ended October 31, 2002	$	5.89		(0.02	)		(1.13	)		(1.15	)
Year Ended October 31, 2003	$	4.74		(0.01	)		1.19			1.18
Year Ended October 31, 2004	$	5.92		(0.02	)		0.18			0.16
Class B Shares
Year Ended October 31, 2000	$	18.20		(0.15	)		(0.90	)		(1.05	)
Year Ended October 31, 2001	$	14.71		(0.10	)		(5.87	)		(5.97	)
Year Ended October 31, 2002	$	5.54		(0.06	)		(1.04	)		(1.10	)
Year Ended October 31, 2003	$	4.44		(0.04	)		1.11			1.07
Year Ended October 31, 2004	$	5.51		(0.05	)		0.15			0.10
Class C Shares
Period Ended October 31, 2001 (d)	$	7.11		(0.03	)		(1.53	)		(1.56	)
Year Ended October 31, 2002	$	5.55		(0.06	)		(1.05	)		(1.11	)
Year Ended October 31, 2003	$	4.44		(0.04	)		1.11			1.07
Year Ended October 31, 2004	$	5.51		(0.05	)		0.16			0.11
Class D Shares
Year Ended October 31, 2000	$	18.36		(0.05	)		(0.84	)		(0.89	)
Year Ended October 31, 2001	$	15.03		(0.03	)		(5.86	)		(5.89	)
Year Ended October 31, 2002	$	5.94		(0.01	)		(1.14	)		(1.15	)
Year Ended October 31, 2003	$	4.79		—			1.21			1.21
Year Ended October 31, 2004	$	6.00		—	(k)		0.17			0.17
Class R Shares
Period Ending October 31, 2003 (e)	$	5.76		(0.01	)		0.25			0.24
Year Ended October 31, 2004	$	6.00		(0.03	)		0.18			0.15
Institutional Service Class Shares
Period Ended October 31, 2002 (f)	$	6.59		(0.01	)		(1.79	)		(1.80	)
Year Ended October 31, 2003	$	4.79		0.00			1.22			1.22
Year Ended October 31, 2004 (l)	$	6.01		0.01			0.17			0.18
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	6.34		—			(0.17	)		(0.17	)

[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
Year Ended October 31, 2000		—			(2.44	)		(2.44	)	$	14.99		(6.43%	)
Year Ended October 31, 2001		—			(3.20	)		(3.20	)	$	5.89		(47.33%	)
Year Ended October 31, 2002		—			—			—		$	4.74		(19.52%	)
Year Ended October 31, 2003		—			—			—		$	5.92		24.89%
Year Ended October 31, 2004		—			—			—		$	6.08		2.70%
Class B Shares
Year Ended October 31, 2000		—			(2.44	)		(2.44	)	$	14.71		(7.30%	)
Year Ended October 31, 2001		—			(3.20	)		(3.20	)	$	5.54		(49.10%	)
Year Ended October 31, 2002		—			—			—		$	4.44		(19.86%	)
Year Ended October 31, 2003		—			—			—		$	5.51		24.10%
Year Ended October 31, 2004		—			—			—		$	5.61		1.81%
Class C Shares
Period Ended October 31, 2001 (d)		—			—			—		$	5.55		(21.94%	) (h)
Year Ended October 31, 2002		—			—			—		$	4.44		(20.00%	)
Year Ended October 31, 2003		—			—			—		$	5.51		24.10%
Year Ended October 31, 2004		—			—			—		$	5.62		2.00%
Class D Shares
Year Ended October 31, 2000		—			(2.44	)		(2.44	)	$	15.03		(6.23%	)
Year Ended October 31, 2001		—			(3.20	)		(3.20	)	$	5.94		(47.07%	)
Year Ended October 31, 2002		—			—			—		$	4.79		(19.36%	)
Year Ended October 31, 2003		—			—			—		$	6.00		25.26%
Year Ended October 31, 2004		—	(k)		—			—		$	6.17		2.87%
Class R Shares
Period Ending October 31, 2003 (e)		—			—			—		$	6.00		4.17%	(h)
Year Ended October 31, 2004		—			—			—		$	6.15		2.50%
Institutional Service Class Shares
Period Ended October 31, 2002 (f)		—			—			—		$	4.79		(27.31%	) (h)
Year Ended October 31, 2003		—			—			—		$	6.01		25.47%
Year Ended October 31, 2004 (l)		—	(k)		—			—		$	6.19		3.03%
Institutional Class Shares
Period Ended October 31, 2004 (g)		—			—			—		$	6.17		(2.68%	) (h)

[Additional columns below]

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



	Ratios / Supplemental Data
									Ratio of		Ratio of Net
						Ratio of Net			Expenses		Investment
						Investment			(Prior to		Income (Loss)
	Net Assets		Ratio of			Income			Reimbursements)		(Prior to
	at End of		Expenses			(Loss)			to Average		Reimbursements)
	Period		to Average			to Average			Net		to Average		Portfolio
	(000s)		Net Assets			Net Assets			Assets (b)		Net Assets (b)		Turnover (c)



Class A Shares
Year Ended October 31, 2000	$	9,234		1.04%			(0.52%	)		(j)		(j)		163.52%
Year Ended October 31, 2001	$	5,268		1.33%			(0.60%	)		(j)		(j)		210.72%
Year Ended October 31, 2002	$	4,828		1.17%			(0.34%	)		(j)		(j)		241.95%
Year Ended October 31, 2003	$	6,529		1.13%			(0.22%	)		(j)		(j)		281.63%
Year Ended October 31, 2004	$	30,641		1.19%			(0.36%	)		(j)		(j)		286.06%
Class B Shares
Year Ended October 31, 2000	$	8,180		1.80%			(1.28%	)		(j)		(j)		163.52%
Year Ended October 31, 2001	$	4,288		2.12%			(1.36%	)		(j)		(j)		210.72%
Year Ended October 31, 2002	$	3,299		1.90%			(1.08%	)		(j)		(j)		241.95%
Year Ended October 31, 2003	$	3,980		1.84%			(0.93%	)		(j)		(j)		281.63%
Year Ended October 31, 2004	$	5,817		1.84%			(1.00%	)		(j)		(j)		286.06%
Class C Shares
Period Ended October 31, 2001 (d)	$	58		2.27%	(i)		(1.41%	) (i)		(j)		(j)		210.72%
Year Ended October 31, 2002	$	52		1.90%			(1.08%	)		(j)		(j)		241.95%
Year Ended October 31, 2003	$	101		1.84%			(0.95%	)		(j)		(j)		281.63%
Year Ended October 31, 2004	$	248		1.84%			(1.01%	)		(j)		(j)		286.06%
Class D Shares
Year Ended October 31, 2000	$	834,816		0.83%			(0.30%	)		(j)		(j)		163.52%
Year Ended October 31, 2001	$	385,898		1.10%			(0.38%	)		(j)		(j)		210.72%
Year Ended October 31, 2002	$	207,357		0.93%			(0.10%	)		(j)		(j)		241.95%
Year Ended October 31, 2003	$	235,758		0.86%			0.05%			(j)		(j)		281.63%
Year Ended October 31, 2004	$	216,843		0.85%			(0.01%	)		(j)		(j)		286.06%
Class R Shares
Period Ending October 31, 2003 (e)	$	1		1.42%	(i)		(0.76%	) (i)		1.52%		0.86%		281.63%
Year Ended October 31, 2004	$	1		1.29%			(0.46%	)		(j)		(j)		286.06%
Institutional Service Class Shares
Period Ended October 31, 2002 (f)	$	59,307		0.88%	(i)		(0.11%	) (i)		(j)		(j)		241.95%
Year Ended October 31, 2003	$	75,002		0.84%			0.06%			(j)		(j)		281.63%
Year Ended October 31, 2004 (l)	$	1		0.84%			0.22%			(j)		(j)		286.06%
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	1		0.80%	(i)		(0.06%	) (i)		(j)		(j)		286.06%


(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 March 1, 2001 (commencement of operations) through October 31, 2001.
(e)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(f)		For the period from January 2, 2002 (commencement of operations) through October 31, 2002.
(g)		For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(h)		Not annualized.
(i)		Annualized.
(j)		There were no fee reductions during the period.
(k)		The amount is less than $0.005.
(l)		Net investment income (loss) is based on average shares outstanding during the period.

See notes to financial statements.

2004 Annual Report 47


	Financial Highlights
	Selected Data for Each Share of Capital Outstanding

Core Series

Gartmore Large Cap Value 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
Year Ended October 31, 2000	$	10.32		0.15		0.67			0.82
Year Ended October 31, 2001	$	10.96		0.10		(0.98	)		(0.88	)
Year Ended October 31, 2002	$	9.98		0.08		(0.82	)		(0.74	)
Year Ended October 31, 2003	$	8.75		0.10		1.69			1.79
Year Ended October 31, 2004	$	10.44		0.10		1.35			1.45
Class B Shares
Year Ended October 31, 2000	$	10.24		0.07		0.68			0.75
Year Ended October 31, 2001 (e)	$	10.84		0.02		(0.98	)		(0.96	)
Year Ended October 31, 2002	$	9.86		0.01		(0.80	)		(0.79	)
Year Ended October 31, 2003	$	8.64		0.03		1.67			1.70
Year Ended October 31, 2004	$	10.30		0.03		1.33			1.36
Class C Shares
Period Ended October 31, 2001 (f)	$	11.21		0.02		(1.34	)		(1.32	)
Year Ended October 31, 2002	$	9.85		0.01		(0.79	)		(0.78	)
Year Ended October 31, 2003	$	8.63		0.04		1.66			1.70
Year Ended October 31, 2004	$	10.28		0.03		1.33			1.36
Class R Shares
Period Ended October 31, 2003 (g)	$	9.92		—		0.39			0.39
Year Ended October 31, 2004	$	10.31		0.08		1.33			1.41
Institutional Service Class Shares
Period Ended October 31, 1999 (d)	$	10.00		0.08		0.33			0.41
Year Ended October 31, 2000	$	10.35		0.16		0.67			0.83
Year Ended October 31, 2001	$	10.98		0.12		(0.98	)		(0.86	)
Year Ended October 31, 2002 (h)	$	10.03		0.06		1.04			1.10

[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
Year Ended October 31, 2000		(0.14	)		(0.04	)		(0.18	)	$	10.96		8.09%
Year Ended October 31, 2001		(0.10	)		—			(0.10	)	$	9.98		(8.07%	)
Year Ended October 31, 2002		(0.08	)		(0.41	)		(0.49	)	$	8.75		(7.98%	)
Year Ended October 31, 2003		(0.10	)		—			(0.10	)	$	10.44		20.57%
Year Ended October 31, 2004		(0.10	)		—			(0.10	)	$	11.79		13.92%
Class B Shares
Year Ended October 31, 2000		(0.11	)		(0.04	)		(0.15	)	$	10.84		7.42%
Year Ended October 31, 2001 (e)		(0.02	)		—			(0.02	)	$	9.86		(8.84%	)
Year Ended October 31, 2002		(0.02	)		(0.41	)		(0.43	)	$	8.64		(8.53%	)
Year Ended October 31, 2003		(0.04	)		—			(0.04	)	$	10.30		19.80%
Year Ended October 31, 2004		(0.03	)		—			(0.03	)	$	11.63		13.25%
Class C Shares
Period Ended October 31, 2001 (f)		(0.04	)		—			(0.04	)	$	9.85		(11.82%	) (i)
Year Ended October 31, 2002		(0.03	)		(0.41	)		(0.44	)	$	8.63		(8.50%	)
Year Ended October 31, 2003		(0.05	)		—			(0.05	)	$	10.28		19.77%
Year Ended October 31, 2004		(0.04	)		—			(0.04	)	$	11.60		13.25%
Class R Shares
Period Ended October 31, 2003 (g)		—			—			—		$	10.31		3.93%	(i)
Year Ended October 31, 2004		(0.08	)		—			(0.08	)	$	11.64		13.71%
Institutional Service Class Shares
Period Ended October 31, 1999 (d)		(0.06	)		—			(0.06	)	$	10.35		4.05%	(i)
Year Ended October 31, 2000		(0.16	)		(0.04	)		(0.20	)	$	10.98		8.20%
Year Ended October 31, 2001		(0.09	)		—			(0.09	)	$	10.03		(7.86%	)
Year Ended October 31, 2002 (h)		(0.03	)		(0.41	)		(0.44	)	$	10.69		11.26%	(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 Net			Portfolio
	(000s)		Net Assets			Net Assets			Net Assets (b)			Assets (b)			Turnover (c)



Class A Shares
Year Ended October 31, 2000	$	30,726		1.15%			1.47%			1.77%			0.85%			88.41%
Year Ended October 31, 2001	$	27,824		1.15%			0.96%			1.64%			0.47%			156.09%
Year Ended October 31, 2002	$	23,581		1.36%			0.81%			1.48%			0.69%			91.03%
Year Ended October 31, 2003	$	24,800		1.39%			1.06%			1.47%			0.98%			77.28%
Year Ended October 31, 2004	$	24,846		1.39%			0.91%			1.45%			0.84%			58.61%
Class B Shares
Year Ended October 31, 2000	$	408		1.90%			0.70%			3.56%			(0.96%	)		88.41%
Year Ended October 31, 2001 (e)	$	528		1.90%			0.21%			3.24%			(1.13%	)		156.09%
Year Ended October 31, 2002	$	576		2.02%			0.14%			2.17%			(0.01%	)		91.03%
Year Ended October 31, 2003	$	751		2.00%			0.43%			2.08%			0.35%			77.28%
Year Ended October 31, 2004	$	982		2.00%			0.29%			2.06%			0.22%			58.61%
Class C Shares
Period Ended October 31, 2001 (f)	$	58		1.90%	(j)		0.11%	(j)		3.94%	(j)		(1.93%	) (j)		156.09%
Year Ended October 31, 2002	$	80		2.03%			0.13%			2.15%			0.01%			91.03%
Year Ended October 31, 2003	$	248		2.00%			0.38%			2.08%			0.30%			77.28%
Year Ended October 31, 2004	$	743		2.00%			0.21%			2.06%			0.14%			58.61%
Class R Shares
Period Ended October 31, 2003 (g)	$	1		1.60%	(j)		0.48%	(j)		2.06%	(j)		0.02%	(j)		77.28%
Year Ended October 31, 2004	$	1		1.54%			0.75%			1.86%			0.42%			58.61%
Institutional Service Class Shares
Period Ended October 31, 1999 (d)	$	755		1.00%	(j)		0.77%	(j)		4.21%	(j)		(2.44%	) (j)		120.94%
Year Ended October 31, 2000	$	1,645		1.00%			1.56%			1.64%			0.92%			88.41%
Year Ended October 31, 2001	$	68		1.00%			1.03%			1.44%			0.59%			156.09%
Year Ended October 31, 2002 (h)	$	—		0.97%	(j)		1.62%	(j)		1.39%	(j)		1.20%	(j)		37.27%


(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 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 November 2, 1998 (commencement of operations) through October 31, 1999.
(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)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(h)		On March 5, 2002 Institutional Service Class Shares were liquidated in their entirety. Information presented represents operations through March 5, 2002.
(i)		Not annualized.
(j)		Annualized.

See notes to financial statements.

48 Annual Report 2004

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Gartmore Nationwide 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
Year Ended October 31, 2000	$	32.71		0.16			0.14			0.30
Year Ended October 31, 2001	$	30.80		0.08			(5.66	)		(5.58	)
Year Ended October 31, 2002	$	16.75		0.07			(1.68	)		(1.61	)
Year Ended October 31, 2003	$	15.06		0.09			3.02			3.11
Year Ended October 31, 2004	$	18.08		0.07			0.87			0.94
Class B Shares
Year Ended October 31, 2000	$	32.45		(0.06	)		0.13			0.07
Year Ended October 31, 2001	$	30.48		(0.06	)		(5.65	)		(5.71	)
Year Ended October 31, 2002	$	16.40		(0.03	)		(1.65	)		(1.68	)
Year Ended October 31, 2003	$	14.72		—			2.94			2.94
Year Ended October 31, 2004	$	17.65		(0.05	)		0.86			0.81
Class C Shares
Period Ended October 31, 2001 (d)	$	19.12		(0.03	)		(2.68	)		(2.71	)
Year Ended October 31, 2002	$	16.40		(0.03	)		(1.65	)		(1.68	)
Year Ended October 31, 2003	$	14.72		(0.01	)		2.95			2.94
Year Ended October 31, 2004	$	17.65		(0.06	)		0.87			0.81
Class D Shares
Year Ended October 31, 2000	$	32.60		0.23			0.12			0.35
Year Ended October 31, 2001	$	30.67		0.13			(5.65	)		(5.52	)
Year Ended October 31, 2002	$	16.64		0.13			(1.69	)		(1.56	)
Year Ended October 31, 2003	$	14.96		0.13			3.00			3.13
Year Ended October 31, 2004	$	17.96		0.12			0.88			1.00
Class R Shares
Period Ended October 31, 2003 (e)	$	17.32		—			0.63			0.63
Year Ended October 31, 2004	$	17.95		0.03			0.88			0.91
Institutional Service Class Shares
Period Ended October 31, 2002 (f)	$	18.18		0.11			(3.24	)		(3.13	)
Year Ended October 31, 2003	$	14.95		0.14			3.01			3.15
Year Ended October 31, 2004 (k)	$	17.96		0.17			0.83			1.00
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	19.00		0.03			(0.17	)		(0.14	)

[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
Year Ended October 31, 2000		(0.17	)		(2.04	)		(2.21	)	$	30.80		1.25%
Year Ended October 31, 2001		(0.10	)		(8.37	)		(8.47	)	$	16.75		(23.34%	)
Year Ended October 31, 2002		(0.08	)		—			(0.08	)	$	15.06		(9.64%	)
Year Ended October 31, 2003		(0.09	)		—			(0.09	)	$	18.08		20.74%
Year Ended October 31, 2004		(0.06	)		—			(0.06	)	$	18.96		5.22%
Class B Shares
Year Ended October 31, 2000		—			(2.04	)		(2.04	)	$	30.48		0.48%
Year Ended October 31, 2001		—			(8.37	)		(8.37	)	$	16.40		(24.19%	)
Year Ended October 31, 2002		—			—			—		$	14.72		(10.24%	)
Year Ended October 31, 2003		(0.01	)		—			(0.01	)	$	17.65		19.99%
Year Ended October 31, 2004		—			—			—		$	18.46		4.59%
Class C Shares
Period Ended October 31, 2001 (d)		(0.01	)		—			(0.01	)	$	16.40		(14.16%	) (h)
Year Ended October 31, 2002		—			—			—		$	14.72		(10.24%	)
Year Ended October 31, 2003		(0.01	)		—			(0.01	)	$	17.65		20.00%
Year Ended October 31, 2004		(0.01	)		—			(0.01	)	$	18.45		4.58%
Class D Shares
Year Ended October 31, 2000		(0.24	)		(2.04	)		(2.28	)	$	30.67		1.40%
Year Ended October 31, 2001		(0.14	)		(8.37	)		(8.51	)	$	16.64		(23.22%	)
Year Ended October 31, 2002		(0.12	)		—			(0.12	)	$	14.96		(9.43%	)
Year Ended October 31, 2003		(0.13	)		—			(0.13	)	$	17.96		21.07%
Year Ended October 31, 2004		(0.13	)		—			(0.13	)	$	18.83		5.59%
Class R Shares
Period Ended October 31, 2003 (e)		—			—			—		$	17.95		3.64%	(h)
Year Ended October 31, 2004		(0.03	)		—			(0.03	)	$	18.83		5.08%
Institutional Service Class Shares
Period Ended October 31, 2002 (f)		(0.10	)		—			(0.10	)	$	14.95		(17.27%	) (h)
Year Ended October 31, 2003		(0.14	)		—			(0.14	)	$	17.96		21.22%
Year Ended October 31, 2004 (k)		(0.14	)		—			(0.14	)	$	18.82		5.60%
Institutional Class Shares
Period Ended October 31, 2004 (g)		(0.03	)		—			(0.03	)	$	18.83		(0.74%	) (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
Year Ended October 31, 2000	$	54,537		0.98%			0.54%			(j)			(j)			90.01%
Year Ended October 31, 2001	$	149,086		1.15%			0.32%			(j)			(j)			71.36%
Year Ended October 31, 2002	$	362,435		1.14%			0.46%			(j)			(j)			25.51%
Year Ended October 31, 2003	$	571,918		1.13%			0.57%			(j)			(j)			120.02%
Year Ended October 31, 2004	$	447,884		1.10%			0.35%			(j)			(j)			144.61%
Class B Shares
Year Ended October 31, 2000	$	47,293		1.73%			(0.20%	)		(j)			(j)			90.01%
Year Ended October 31, 2001	$	36,241		1.85%			(0.30%	)		(j)			(j)			71.36%
Year Ended October 31, 2002	$	31,267		1.80%			(0.18%	)		(j)			(j)			25.51%
Year Ended October 31, 2003	$	35,564		1.79%			(0.06%	)		(j)			(j)			120.02%
Year Ended October 31, 2004	$	35,073		1.76%			(0.30%	)		(j)			(j)			144.61%
Class C Shares
Period Ended October 31, 2001 (d)	$	175		1.89%	(i)		(0.45%	) (i)		(j)			(j)			71.36%
Year Ended October 31, 2002	$	212		1.80%			(0.20%	)		(j)			(j)			25.51%
Year Ended October 31, 2003	$	714		1.79%			(0.16%	)		(j)			(j)			120.02%
Year Ended October 31, 2004	$	989		1.76%			(0.32%	)		(j)			(j)			144.61%
Class D Shares
Year Ended October 31, 2000	$	2,085,243		0.78%			0.74%			(j)			(j)			90.01%
Year Ended October 31, 2001	$	1,458,371		0.89%			0.64%			(j)			(j)			71.36%
Year Ended October 31, 2002	$	1,125,402		0.86%			0.77%			(j)			(j)			25.51%
Year Ended October 31, 2003	$	1,240,520		0.85%			0.89%			(j)			(j)			120.02%
Year Ended October 31, 2004	$	1,161,934		0.82%			0.64%			(j)			(j)			144.61%
Class R Shares
Period Ended October 31, 2003 (e)	$	1		1.52%	(i)		0.07%	(i)		1.62%	(i)		(0.03%	) (i)		120.02%
Year Ended October 31, 2004	$	1		1.27%			0.16%			(j)			(j)			144.61%
Institutional Service Class Shares
Period Ended October 31, 2002 (f)	$	48,283		0.80%	(i)		0.75%	(i)		(j)			(j)			25.51%
Year Ended October 31, 2003	$	55,878		0.79%			0.94%			(j)			(j)			120.02%
Year Ended October 31, 2004 (k)	$	1		0.75%			0.92%			(j)			(j)			144.61%
Institutional Class Shares
Period Ended October 31, 2004 (g)	$	341		0.78%	(i)		0.54%	(i)		(j)			(j)			144.61%


(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 1, 2001 (commencement of operations) through October 31, 2001.
(e)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(f)		For the period from January 2, 2002 (commencement of operations) through October 31, 2002.
(g)		For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(h)		Not annualized.
(i)		Annualized.
(j)		There were no fee reductions during the period.
(k)		Net investment income (loss) is based on average shares outstanding during the period.

See notes to financial statements.

2004 Annual Report 49


	Financial Highlights
	Selected Data for Each Share of Capital Outstanding

Core Series

Gartmore Mid Cap Growth 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, 2003 (d) (e)	$	9.88		(0.08	)		4.04		3.96
Year Ended October 31, 2004	$	13.84		(0.13	)		0.87		0.74
Class B Shares
Period Ended October 31, 2003 (f) (e)	$	13.17		(0.05	)		0.72		0.67
Year Ended October 31, 2004	$	13.84		(0.20	)		0.84		0.64
Class C Shares
Period Ended October 31, 2003 (f)	$	13.17		(0.05	)		0.72		0.67
Year Ended October 31, 2004	$	13.84		(0.23	)		0.87		0.64
Class R Shares
Period Ended October 31, 2003 (g)	$	13.08		(0.01	)		0.79		0.78
Year Ended October 31, 2004	$	13.86		(0.17	)		0.86		0.69
Institutional Service Class Shares
Period Ended October 31, 2002 (h)	$	10.00		(0.01	)		0.27		0.26
Year Ended October 31, 2003	$	10.26		(0.09	)		3.69		3.60
Year Ended October 31, 2004	$	13.86		(0.10	)		0.88		0.78

[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, 2003 (d) (e)		—			—		$	13.84		40.08%	(i)
Year Ended October 31, 2004		(0.37	)		(0.37	)	$	14.21		5.44%
Class B Shares
Period Ended October 31, 2003 (f) (e)		—			—		$	13.84		5.09%	(i)
Year Ended October 31, 2004		(0.37	)		(0.37	)	$	14.11		4.70%
Class C Shares
Period Ended October 31, 2003 (f)		—			—		$	13.84		5.09%	(i)
Year Ended October 31, 2004		(0.37	)		(0.37	)	$	14.11		4.70%
Class R Shares
Period Ended October 31, 2003 (g)		—			—		$	13.86		5.96%	(i)
Year Ended October 31, 2004		(0.37	)		(0.37	)	$	14.18		5.06%
Institutional Service Class Shares
Period Ended October 31, 2002 (h)		—			—		$	10.26		2.60%	(i)
Year Ended October 31, 2003		—			—		$	13.86		35.09%
Year Ended October 31, 2004		(0.37	)		(0.37	)	$	14.27		5.73%

[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, 2003 (d) (e)	$	522		1.40%	(j)		(1.02%	) (j)		7.09%	(j)		(6.71%	) (j)		74.46%
Year Ended October 31, 2004	$	1,463		1.40%			(0.98%	)		2.51%			(2.08%	)		94.56%
Class B Shares
Period Ended October 31, 2003 (f) (e)	$	18		2.15%	(j)		(1.82%	) (j)		7.76%	(j)		(7.43%	) (j)		74.46%
Year Ended October 31, 2004	$	153		2.15%			(1.74%	)		3.27%			(2.86%	)		94.56%
Class C Shares
Period Ended October 31, 2003 (f)	$	1		2.15%	(j)		(1.87%	) (j)		7.55%	(j)		(7.27%	) (j)		74.46%
Year Ended October 31, 2004	$	224		2.15%			(1.72%	)		3.17%			(2.74%	)		94.56%
Class R Shares
Period Ended October 31, 2003 (g)	$	1		1.75%	(j)		(1.54%	) (j)		7.41%	(j)		(7.20%	) (j)		74.46%
Year Ended October 31, 2004	$	1		1.66%			(1.27%	)		2.63%			(2.24%	)		94.56%
Institutional Service Class Shares
Period Ended October 31, 2002 (h)	$	1,026		1.15%	(j)		(0.69%	) (j)		20.62%	(j)		(20.16%	) (j)		3.74%
Year Ended October 31, 2003	$	1,384		1.15%			(0.76%	)		5.96%			(5.56%	)		74.46%
Year Ended October 31, 2004	$	1,553		1.15%			(0.72%	)		2.26%			(1.83%	)		94.56%


(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 5, 2003 (commencement of operations) through October 31, 2003.
(e)		Net investment income (loss) is based on average shares outstanding during the period.
(f)		For the period from August 21, 2003 (commencement of operations) through October 31, 2003.
(g)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(h)		For the period from October 1, 2002 (commencement of operations) through October 31, 2002.
(i)		Not annualized.
(j)		Annualized.

See notes to financial statements.

50 Annual Report 2004

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Gartmore Small Cap Fund



			Investment Activities
								Net Realized
								and
	Net Asset		Net					Unrealized
	Value,		Investment					Gains
	Beginning		Income			Redemption		(Losses) on
	of Period		(Loss)			Fees		Investments



Class A Shares
Year Ended October 31, 2000	$	11.19		(0.02	)		—		2.05
Year Ended October 31, 2001	$	13.12		(0.02	)		—		(1.23	)
Year Ended October 31, 2002	$	10.79		(0.02	)		—		(1.16	)
Year Ended October 31, 2003	$	9.61		(0.05	)		—		4.12
Year Ended October 31, 2004	$	13.68		(0.09	)		0.05		2.12
Class B Shares
Year Ended October 31, 2000	$	11.17		(0.08	)		—		2.03
Year Ended October 31, 2001	$	13.02		(0.09	)		—		(1.24	)
Year Ended October 31, 2002	$	10.61		(0.09	)		—		(1.13	)
Year Ended October 31, 2003	$	9.39		(0.10	)		—		4.00
Year Ended October 31, 2004	$	13.29		(0.17	)		0.05		2.04
Class C Shares
Period Ended October 31, 2001 (d)	$	11.33		(0.04	)		—		(0.66	)
Year Ended October 31, 2002	$	10.63		(0.09	)		—		(1.13	)
Year Ended October 31, 2003	$	9.41		(0.09	)		—		3.99
Year Ended October 31, 2004	$	13.31		(0.13	)		0.05		2.01
Class R Shares
Period Ended October 31, 2004 (e)	$	14.03		(0.09	)		0.05		1.11
Institutional Service Class Shares
Year Ended October 31, 2000	$	11.20		(0.01	)		—		2.06
Year Ended October 31, 2001	$	13.15		—			—		(1.23	)
Year Ended October 31, 2002	$	10.84		(0.01	)		—		(1.16	)
Year Ended October 31, 2003	$	9.67		(0.02	)		—		4.14
Year Ended October 31, 2004 (i)	$	13.79		(0.06	)		0.05		2.11
Institutional Class Shares
Period Ended October 31, 2004 (f)	$	15.64		(0.01	)		0.05		0.07

[Additional columns below]

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



	Distributions
	Total
	from			Net						Net Asset
	Investment			Realized			Total			Value, End		Total
	Activities			Gains			Distributions			of Period		Return (a)



Class A Shares
Year Ended October 31, 2000		2.03			(0.10	)		(0.10	)	$	13.12		18.25%
Year Ended October 31, 2001		(1.25	)		(1.08	)		(1.08	)	$	10.79		(10.09%	)
Year Ended October 31, 2002		(1.18	)		—			—		$	9.61		(10.94%	)
Year Ended October 31, 2003		4.07			—			—		$	13.68		42.35%
Year Ended October 31, 2004		2.08			(0.17	)		(0.17	)	$	15.59		15.33%
Class B Shares
Year Ended October 31, 2000		1.95			(0.10	)		(0.10	)	$	13.02		17.56%
Year Ended October 31, 2001		(1.33	)		(1.08	)		(1.08	)	$	10.61		(10.84%	)
Year Ended October 31, 2002		(1.22	)		—			—		$	9.39		(11.50%	)
Year Ended October 31, 2003		3.90			—			—		$	13.29		41.53%
Year Ended October 31, 2004		1.92			(0.17	)		(0.17	)	$	15.04		14.57%
Class C Shares
Period Ended October 31, 2001 (d)		(0.70	)		—			—		$	10.63		(6.18%	) (g)
Year Ended October 31, 2002		(1.22	)		—			—		$	9.41		(11.48%	)
Year Ended October 31, 2003		3.90			—			—		$	13.31		41.45%
Year Ended October 31, 2004		1.93			(0.17	)		(0.17	)	$	15.07		14.62%
Class R Shares
Period Ended October 31, 2004 (e)		1.07			—			—		$	15.10		7.63%	(g)
Institutional Service Class Shares
Year Ended October 31, 2000		2.05			(0.10	)		(0.10	)	$	13.15		18.44%
Year Ended October 31, 2001		(1.23	)		(1.08	)		(1.08	)	$	10.84		(9.90%	)
Year Ended October 31, 2002		(1.17	)		—			—		$	9.67		(10.79%	)
Year Ended October 31, 2003		4.12			—			—		$	13.79		42.61%
Year Ended October 31, 2004 (i)		2.10			(0.17	)		(0.17	)	$	15.72		15.43%
Institutional Class Shares
Period Ended October 31, 2004 (f)		0.11			—			—		$	15.75		0.70%	(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
Year Ended October 31, 2000	$	23,922		1.35%			(0.16%	)		2.10%			(0.91%	)		139.27%
Year Ended October 31, 2001	$	21,190		1.35%			(0.17%	)		2.00%			(0.82%	)		119.03%
Year Ended October 31, 2002	$	20,290		1.51%			(0.24%	)		1.72%			(0.45%	)		111.00%
Year Ended October 31, 2003	$	21,198		1.59%			(0.37%	)		1.70%			(0.48%	)		100.05%
Year Ended October 31, 2004	$	23,023		1.59%			(0.55%	)		(j)			(j)			341.57%
Class B Shares
Year Ended October 31, 2000	$	748		2.10%			(0.90%	)		3.82%			(2.62%	)		139.27%
Year Ended October 31, 2001	$	854		2.10%			(0.93%	)		3.74%			(2.57%	)		119.03%
Year Ended October 31, 2002	$	950		2.17%			(0.89%	)		2.41%			(1.13%	)		111.00%
Year Ended October 31, 2003	$	1,368		2.20%			(1.00%	)		2.30%			(1.10%	)		100.05%
Year Ended October 31, 2004	$	1,496		2.20%			(1.16%	)		(j)			(j)			341.57%
Class C Shares
Period Ended October 31, 2001 (d)	$	20		2.10%	(h)		(1.26%	) (h)		5.62%	(h)		(4.78%	) (h)		119.03%
Year Ended October 31, 2002	$	28		2.17%			(0.90%	)		2.47%			(1.20%	)		111.00%
Year Ended October 31, 2003	$	89		2.20%			(1.04%	)		2.31%			(1.15%	)		100.05%
Year Ended October 31, 2004	$	180		2.20%			(1.16%	)		(j)			(j)			341.57%
Class R Shares
Period Ended October 31, 2004 (e)		1		1.73%	(h)		(0.63%	) (h)		(h)(j)			(h)(j)			341.57%
Institutional Service Class Shares
Year Ended October 31, 2000	$	4,192		1.20%			(0.01%	)		1.92%			(0.73%	)		139.27%
Year Ended October 31, 2001	$	4,485		1.20%			(0.04%	)		1.79%			(0.63%	)		119.03%
Year Ended October 31, 2002	$	5,856		1.38%			(0.11%	)		1.57%			(0.30%	)		111.00%
Year Ended October 31, 2003	$	18,584		1.45%			(0.35%	)		1.54%			(0.44%	)		100.05%
Year Ended October 31, 2004 (i)	$	7		1.45%			(0.39%	)		(j)			(j)			341.57%
Institutional Class Shares
Period Ended October 31, 2004 (f)	$	120		1.20%	(h)		(0.22%	) (h)		(h)(j)			(h)(j)			341.57%


(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 1, 2001 (commencement of operations) through October 31, 2001.
(e)		For the period from December 30, 2003 (commencement of operations) through October 31, 2004
(f)		For the period from June 29, 2004 (commencement of operations) through October 31, 2004
(g)		Not annualized.
(h)		Annualized.
(i)		Net investment income (loss) is based on average shares outstanding during the period.
(j)		There were no fee reductions during the period.

See notes to financial statements.

2004 Annual Report 51

Core Series


	Gartmore Investor Destinations
	Aggressive Fund

For the annual period ended Oct. 31, 2004, the Gartmore Investor Destinations Aggressive Fund returned 11.55% (Class A at NAV) versus 12.64% for its composite benchmark, which consists of 40% S&P 500 Index, 30% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, 15% S&P MidCap 400 Index, 10% Russell 2000® Index and 5% Lehman Brothers Aggregate Bond Index. As of Oct. 1, 2004, the Fund’s composite benchmark was changed to 95% S&P 500 Index, and 5% Lehman Brothers Aggregate Bond Index, which returned 9.23% for the one-year period. The new composite benchmark was selected in an effort to simplify the comparability of our Fund returns to the returns of other, similar asset allocation products. For broader comparison, the average return for the Fund’s Lipper peer category of Global Multi-Cap Core Funds was 11.50%.

The end of 2003 brought a significant rise in equities driven by better-than-expected earnings. The first half of 2004 showed flat to positive returns for the equity markets, which were influenced mainly by indecisive investors. This behavior stemmed from continued political tension in the United States, violence in Iraq, record high oil prices and improving economic data. Fears of terrorist activity resurfaced as the markets reacted sharply to the March 2004 commuter rail attacks in Madrid. The resulting “flight to quality” took over, and top performers featured high-quality and value issues. Market uncertainty caused investors to change favor from the low-quality, low-price and high-beta securities that performed well in the fourth quarter of 2003.

The flow of economic news continually pointed toward a strengthening economy. The stock market, however, still faced a number of uncertain challenges, including the geopolitical situation, record high oil prices, the U.S. presidential election buildup and a shifting Federal Reserve policy. Interest rates were fairly stable for the first half of the reporting period, rising uniformly across the maturity spectrum in March and April by about 30 to 40 basis points. In the second half of the period, the Federal Open Market Committee (FOMC) began increasing the target federal funds rate. Through October 2004, the FOMC increased the federal funds rate by a total of 75 basis points to reach 1.75%.

The Fund’s 30% allocation to the Gartmore International Index Fund was the best-performing component of the portfolio in absolute and relative terms, returning 5.53%. The Fund’s 15% allocation to the Gartmore Mid Cap Market Index Fund produced a 1.57% return for the reporting period. The 40% allocation to the Gartmore S&P 500 Index Fund and the 10% allocation to the Gartmore Small Cap Index Fund also made positive contributions to Fund performance of 3.7% and 1.15%, respectively.

The 5% allocation to the Gartmore Bond Index Fund underperformed the equity indexes during this reporting period, it returned .27%.

As we look ahead, many investors will be watching to see whether the election results will allow the president and Congress to enact the equity-friendly legislation that they have proposed. In terms of initiatives that will likely affect the markets, we believe that the most important ones include Social Security reform and an introduction of some sort of private accounting system, attempts to make Bush’s first-term tax cuts permanent, increased military spending, tort reform and attempts to pass a comprehensive energy bill. Social Security reform and the introduction of private accounts could mean more money flowing into stocks. Making the tax cuts permanent would improve the after-tax return on equity investments. Tort reform could improve corporate profits and make corporations less risk-averse. Increased military spending and energy policy changes would likely help the defense and energy sectors of the economy. The unknown equation is how much tension will center on fiscal policy and higher spending levels, given the current budget deficit.

Portfolio Managers: The Fund is managed by a team of portfolio managers and research analysts from Gartmore Mutual Fund Capital Trust.


	Class A: NDAAX
	Class B: NDABX
	Class C: NDACX
	Class R: GAFRX
	Service Class: NDASX

52 Annual Report 2004

Gartmore Investor Destinations Aggressive Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One year		Inception¹


Class A	without sales charge²		11.55%		-2.25%
	with sales charge³		5.09%		-3.50%

Class B	without sales charge²		10.86%		-2.92%
	with sales charge⁴		5.86%		-3.33%

Class C⁵	without sales charge²		10.88%		-2.92%
	with sales charge⁶		9.88%		-2.92%

Class R^7,8			11.58%		-2.78%

Service Class⁷			11.50%		-2.27%

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 31, 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 effect 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 from the one year return 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.

Performance of a $10,000 Investment

(LINE GRAPH)

[LINE GRAPH]


	Class A (A
	5.75% front-
	end sales				LB
	charge was				Aggregate						S&P MidCap
	deducted.)		Composite		Bond		S&P 500		MSCI EAFE		400		Russell 2000

Mar 31, 00		9425		10000		10000		10000		10000		10000		10000
Oct 31, 00		8822		9449		10550		9599		8633		10477		9294
Oct 31, 01		7011		7559		12085		7209		6503		9173		8114
Oct 31, 02		6123		6701		12797		6120		5662		8735		7175
Oct 31, 03		7613		8424		13425		7393		7223		11419		10286
Oct 31, 04		8492		9489		14168		8089		8614		12679		11493

[Additional columns below]

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


	CPI

Mar 31, 00		10000
Oct 31, 00		10169
Oct 31, 01		10386
Oct 31, 02		10596
Oct 31, 03		10812
Oct 31, 04		11113

Comparative performance of $10,000 invested in Class A shares of the Gartmore Investor Destinations Aggressive Fund, Lehman Brothers Aggregate Bond Index (LB Aggregate Bond)(a), S&P 500 Index (S&P 500)(b), Morgan Stanley Capital International— Europe, Australasia, and Far East Index (MSCI EAFE)(c), the S&P MidCap 400 Index(d), the Russell 2000 Index (Russell 2000)(e), the Aggressive Composite Index (Aggressive Composite)(f), and the Consumer Price Index (CPI)(g) 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 LB Aggregate Bond is an unmanaged, market value-weighted index of investment grade fixed-rate debt issues including government, corporate, asset-backed and mortgage-backed securities with maturities of one year or more.

(b)		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.

(c)		The MSCI EAFE is an unmanaged, market capitalization-weighted index that is designed to represent the performance of developed stock markets outside the United States and Canada.

(d)		The S&P MidCap 400 Index is an unmanaged index that measures the performance of mid-sized U.S. companies.

(e)		The Russell 2000 is an unmanaged index of approximately 2000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies.

(f)		The Aggressive Composite is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Aggressive Composite is a combination of the S&P 500 (40%), the MSCI EAFE (30%), the S&P MidCap 400 Index (15%), the Russell 2000 (10%) and the LB Aggregate Bond (5%).

(g)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

2004 Annual Report 53

Gartmore Investor Destinations Aggressive Fund

Core Series


	Shareholder
	Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


			Beginning		Ending
Investor Destinations			Account Value		Account Value		Expenses Paid		Annualized
Aggressive Fund			5/1/04		10/31/04		During Period*		Expense Ratio


Class A	Actual		$	1,000	$	1,038	$	2.51		0.49%
	Hypothetical	¹	$	1,000	$	1,023	$	2.49		0.49%

Class B	Actual		$	1,000	$	1,034	$	6.19		1.21%
	Hypothetical	¹	$	1,000	$	1,019	$	6.16		1.21%

Class C	Actual		$	1,000	$	1,036	$	6.19		1.21%
	Hypothetical	¹	$	1,000	$	1,019	$	6.16		1.21%

Class R	Actual		$	1,000	$	1,039	$	3.23		0.63%
	Hypothetical	¹	$	1,000	$	1,022	$	3.21		0.63%

Service Class	Actual		$	1,000	$	1,038	$	3.12		0.61%
	Hypothetical	¹	$	1,000	$	1,022	$	3.11		0.61%


*	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.

54 Annual Report 2004

Gartmore Investor Destinations Aggressive Fund

Portfolio Summary

(October 31, 2004)


Asset Allocation


Mutual Funds			100.2%
Liabilities in excess of Other Assets			-0.2%

			100.0%


Top Industries


Equity Funds			95.3%
Fixed Income Funds			4.9%

			100.2%*


Top Holdings


Gartmore S&P 500 Index Fund, Institutional Class			39.8%
Gartmore International Index Fund, Institutional Class			30.5%
Gartmore Mid Cap Market Index Fund, Institutional Class			15.0%
Gartmore Small Cap Index Fund, Institutional Class			10.0%
Gartmore Bond Index Fund, Institutional Class			4.9%

			100.2%*


*	The aggregate market value of the industries exceeds 100% since the percents shown are not expressed as a percentage of total market value. Instead, these percents are expressed as a percentage of the total net assets of the Fund, which have been reduced by accrued, net liabilities of the Fund.

2004 Annual Report 55

Gartmore Investor Destinations Aggressive Fund

Core Series


	Statement of Investments


	October 31, 2004

Gartmore Investor Destinations Aggressive Fund



Mutual Funds (100.2%)


	Shares		Value

Equity Funds (95.3%)
Gartmore International Index Fund, Institutional Class (b)		14,105,540	$	107,766,325
Gartmore Mid Cap Market Index Fund, Institutional Class (b)		4,089,872		53,004,743
Gartmore S&P 500 Index Fund, Institutional Class (b)		14,363,225		140,328,712
Gartmore Small Cap Index Fund, Institutional Class (b)		3,145,272		35,352,855


				336,452,635



Fixed Income Funds (4.9%)
Gartmore Bond Index Fund, Institutional Class (b)		1,569,012	$	17,463,103


Total Mutual Funds				353,915,738


Total Investments (Cost $315,081,003) (a) — 100.2%				353,915,738
Liabilities in excess of other assets — (0.2)%				(573,162)


NET ASSETS — 100.0%			$	353,342,576


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

(b)		Investment in affiliate.

See notes to financial statements.

56 Annual Report 2004

Core Series


	Gartmore Investor Destinations
	Moderately Aggressive Fund

For the annual period ended Oct. 31, 2004, the Gartmore Investor Destinations Moderately Aggressive Fund returned 10.48% (Class A at NAV) versus 11.28% for its composite benchmark, which consists of 35% S&P 500 Index, 25% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, 15% Lehman Brothers U.S. Aggregate Bond Index, 15% S&P MidCap 400 Index, 5% Russell 2000® Index, and 5% Citigroup 3-Month T-Bill Index. As of Oct. 1, 2004, the Fund’s composite benchmark was changed to 80% S&P 500 Index, 15% Lehman Brothers Aggregate Bond Index, and 5% Citigroup 3-Month T-Bill Index, which returned 8.51% for the one-year period. The new composite benchmark was selected in an effort to simplify the comparability of our Fund returns to the returns of other, similar asset allocation products. For broader comparison, the average return for the Fund’s Lipper peer category of Global Flexible Portfolio Funds was 11.27%.

The flow of economic news continually pointed toward a strengthening economy. The stock market, however, still faced a number of uncertain challenges, including the geopolitical situation, record high oil prices, the U.S. presidential election buildup and a shifting Federal Reserve policy. Interest rates were fairly stable for the first half of the reporting period, rising uniformly across the maturity spectrum in March and April by about 30 to 40 basis points. In the second half of the period, interest rates were meaningfully affected in June, when the Federal Open Market Committee (FOMC) began increasing the target federal funds rate. Through October 2004, the FOMC increased the federal funds rate by a total of 75 basis points to reach 1.75%.

The Fund’s 25% allocation to the Gartmore International Index Fund was the best-performing component of the portfolio in absolute and relative terms, returning 4.61%. The 35% allocation to the Gartmore S&P 500 Index Fund and the 5% allocation to the Gartmore Small Cap Index Fund, however, also made positive contributions to Fund performance returning 3.23% and 0.58% respectively.

The Fund’s fixed-income holdings comprise 20% of its total holdings. The 15% allocation to the Gartmore Bond Index Fund underperformed the equity indexes during the reporting period, but it was the second-best-performing component of the portfolio in terms of adding positive returns with 0.8%.

The Fund’s 15% allocation to the Gartmore Mid Cap Market Index Fund produced a 1.57% return for the reporting period.

As we look ahead, many investors will be watching to see whether the election results will allow the president and Congress to enact the equity-friendly legislation that they have proposed. In terms of initiatives that will likely affect the markets, we believe that the most important ones include Social Security reform and an introduction of some sort of private accounting system, attempts to make Bush’s first-term tax cuts permanent, increased military spending, tort reform, and attempts to pass a comprehensive energy bill. Social Security reform and the introduction of private accounts could mean more money flowing into stocks. Making the tax cuts permanent would improve the after-tax return on equity investments. Tort reform could improve corporate profits and make corporations less risk-averse. Increased military spending and energy policy changes would likely help the defense and energy sectors of the economy. The unknown equation is how much tension will center on fiscal policy and higher spending levels, given the current budget deficit.

Portfolio Managers: The Fund is managed by a team of portfolio managers and research analysts from Gartmore Mutual Fund Capital Trust.


	Class A: NDMAX
	Class B: NDMBX
	Class C: NDMCX
	Class R: GMARX
	Service Class: NDMSX

2004 Annual Report 57

Core Series

Gartmore Investor Destinations Moderately Aggressive Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One year		Inception¹


Class A	without sales charge²		10.48%		-0.77%
	with sales charge³		4.12%		-2.04%

Class B	without sales charge²		9.66%		-1.49%
	with sales charge⁴		4.66%		-1.91%

Class C⁵	without sales charge²		9.58%		-1.44%
	with sales charge⁶		8.58%		-1.44%

Class R ^7,8			10.27%		-1.37%

Service Class⁷			10.22%		-0.83%

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 31, 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 effect 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 from the one year return 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.

Performance of a $10,000 Investment

LOGO


	Class A (A
	5.75%
	front-end
	sales
	charge				LB						S&P				Citigroup
	was				Aggregate						MidCap		Russell		3-Month T-
	deducted.)		Composite		Bond		S&P 500		MSCI EAFE		400		2000		Bill

Mar 31, 00		9425		10000		10000		10000		10000		10000		10000		10000
Oct 31, 00		9040		9643		10550		9599		8633		10477		9294		10348
Oct 31, 01		7579		8136		12085		7209		6503		9173		8114		10841
Oct 31, 02		6838		7433		12797		6120		5662		8735		7175		11041
Oct 31, 03		8234		9040		13425		7393		7223		11419		10286		11170
Oct 31, 04		9097		10054		14168		8089		8614		12679		11493		11291

[Additional columns below]

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


	CPI

Mar 31, 00		10000
Oct 31, 00		10169
Oct 31, 01		10386
Oct 31, 02		10596
Oct 31, 03		10812
Oct 31, 04		11113

Comparative performance of $10,000 invested in Class A shares of the Gartmore Investor Destinations Moderately Aggressive Fund, Lehman Brothers Aggregate Bond Index (LB Aggregate Bond)(a), S&P 500 Index (S&P 500)(b), Morgan Stanley Capital International— Europe, Australasia, and Far East Index (MSCI EAFE)(c), the S&P MidCap 400 Index(d), the Russell 2000 Index (Russell 2000)(e), the Citigroup 3-Month T-Bill Index(f), the Moderately Aggressive Composite Index (Moderately Aggressive Composite)(g), and the Consumer Price Index (CPI)(h) 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 LB Aggregate Bond is an unmanaged, market value-weighted index of investment grade fixed-rate debt issues including government, corporate, asset-backed and mortgage-backed securities with maturities of one year or more.

(b)		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.

(c)		The MSCI EAFE is an unmanaged, market capitalization-weighted index that is designed to represent the performance of developed stock markets outside the United States and Canada.

(d)		The S&P MidCap 400 Index is an unmanaged index that measures the performance of mid-sized U.S. companies.

(e)		The Russell 2000 is an unmanaged index of approximately 2000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies.

(f)		The Citigroup 3-Month T-Bill Index is an average of the last 3-month treasury bill issues (excluding the current month-end bill).

(g)		The Moderately Aggressive Composite is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Moderately Aggressive Composite is a combination of the S&P 500 (35%), the MSCI EAFE (25%), the S&P MidCap 400 Index (15%), the LB Aggregate Bond (15%), the Russell 2000 (5%) and the Citigroup 3-Month T-Bill Index (5%).

(h)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

58 Annual Report 2004

Gartmore Investor Destinations Moderately Aggressive Fund

Shareholder

Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


			Beginning		Ending
Investor Destinations			Account Value		Account Value		Expenses Paid		Annualized
Moderately Aggressive Fund			5/1/04		10/31/04		During Period*		Expense Ratio


Class A	Actual		$	1,000	$	1,037	$	2.46		0.48%
	Hypothetical	¹	$	1,000	$	1,023	$	2.44		0.48%

Class B	Actual		$	1,000	$	1,034	$	6.14		1.20%
	Hypothetical	¹	$	1,000	$	1,019	$	6.11		1.20%

Class C	Actual		$	1,000	$	1,034	$	6.14		1.20%
	Hypothetical	¹	$	1,000	$	1,019	$	6.11		1.20%

Class R	Actual		$	1,000	$	1,036	$	3.17		0.62%
	Hypothetical	¹	$	1,000	$	1,022	$	3.16		0.62%

Service Class	Actual		$	1,000	$	1,036	$	3.07		0.60%
	Hypothetical	¹	$	1,000	$	1,022	$	3.05		0.60%


*	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 59

Gartmore Investor Destinations Moderately Aggressive Fund

Core Series


	Portfolio Summary
	(October 31, 2004)


Asset Allocation


Mutual Funds			97.6%
Fixed Contract			2.5%
Liabilities in excess of Other Assets			-0.1%

			100.0%


Top Industries


Equity Funds	80.3%
Fixed Income Funds	17.3%
Fixed Contract	2.5%

	100.1%	*


Top Holdings


Gartmore S&P 500 Index Fund, Institutional Class	34.8%
Gartmore International Index Fund, Institutional Class	25.5%
Gartmore Mid Cap Market Index Fund, Institutional Class	15.0%
Gartmore Bond Index Fund, Institutional Class	14.8%
Gartmore Small Cap Index Fund, Institutional Class	5.0%
Nationwide Fixed Contract	2.5%
Gartmore Morley Enhanced Income Fund, Institutional Class	2.5%
			��
	100.1%	*


*	The aggregate market value of the industries exceeds 100% since the percents shown are not expressed as a percentage of total market value. Instead, these percents are expressed as a percentage of the total net assets of the Fund, which have been reduced by accrued, net liabilities of the Fund.

60 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Investor Destinations Moderately Aggressive Fund



Mutual Funds (97.6%)


	Shares		Value

Equity Funds (80.3%)
Gartmore International Index Fund, Institutional Class (b)		20,223,920	$	154,510,752
Gartmore Mid Cap Market Index Fund, Institutional Class (b)		7,037,600		91,207,290
Gartmore S&P 500 Index Fund, Institutional Class (b)		21,625,604		211,282,147
Gartmore Small Cap Index Fund, Institutional Class (b)		2,706,227		30,417,987


				487,418,176



Fixed Income Funds (17.3%)
Gartmore Bond Index Fund, Institutional Class (b)		8,097,845		90,129,019
Gartmore Morley Enhanced Income Fund, Institutional Class (b)		1,625,372		14,888,405


				105,017,424


Total Mutual Funds				592,435,600



Fixed Contract (2.5%)

	Principal
	Amount		Value

Nationwide Fixed Contract, 3.50% (b) (c)	$	14,914,445		14,914,445


Total Fixed Contract				14,914,445


Total Investments (Cost $558,680,843) (a) — 100.1%				607,350,045
Liabilities in excess of other assets — (0.1)%				(876,876)


NET ASSETS — 100.0%			$	606,473,169


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

(b)		Investment in affiliate.

(c)		The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.

See notes to financial statements.

2004 Annual Report 61


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Investor Destinations Moderately Aggressive Fund (Continued)

Core Series


	Gartmore Investor Destinations
	Moderate Fund

For the annual period ended Oct. 31, 2004, the Gartmore Investor Destinations Moderate Fund returned 8.36% (Class A at NAV) versus 9.04% for its composite benchmark, which consists of 30% S&P 500 Index, 25% Lehman Brothers U.S. Aggregate Bond Index, 15% Citigroup 3-Month T-Bill Index, 15% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index, 10% S&P MidCap 400 Index and 5% Russell 2000® Index. As of Oct. 1, 2004, the Fund’s composite benchmark was changed to 60% S&P 500 Index, 25% Lehman Brothers Aggregate Bond Index, and 15% Citigroup 3-Month T-Bill Index which returned 7.31% for the one-year period. The new composite benchmark was selected in an effort to simplify the comparability of our Fund returns to the returns of other, similar asset allocation products. For broader comparison, the average return for the Fund’s Lipper peer category of Balanced Funds was 7.02%.

The end of 2003 brought a significant rise in equities driven by better-than-expected earnings. The first half of 2004 showed flat to positive returns for the equity markets, which were influenced mainly by indecisive investors. This behavior stemmed from continued political tension in the United States, violence in Iraq, record high oil prices and improving economic data. Fears of terrorist activity resurfaced as the markets reacted sharply to the March 2004 commuter rail attacks in Madrid. The resulting “flight to quality” took over and top performers featured high-quality and value issues. Market uncertainty caused investors to change favor from the low-quality, low-price and high-beta securities that performed well in the fourth quarter of 2003.

The flow of economic news continually pointed toward a strengthening economy. However, the stock market still faced a number of uncertain challenges, including the geopolitical situation, record high oil prices, the U.S. presidential election buildup, and a shifting Federal Reserve policy. Interest rates were fairly stable for the first half of the reporting period, rising uniformly across the maturity spectrum in March and April by about 30 to 40 basis points. In the second half of the period, interest rates were meaningfully affected in June, when the Federal Open Market Committee (FOMC) began increasing the target federal funds rate. Through October 2004, the FOMC increased the federal funds rate by a total of 75 basis points to reach 1.75%.

The Fund’s 15% allocation to the Gartmore International Index Fund was the best-performing component of the portfolio in absolute and relative terms, returning 2.76%. The 30% allocation to the Gartmore S&P 500 Index Fund and the 5% allocation to the Gartmore Small Cap Index Fund, however, also made positive contributions to Fund performance, returning 2.77% and 0.58% respectively. The Fund’s 10% allocation to the Gartmore Mid Cap Market Index Fund returned 1.05%.

The Fund’s fixed-income holdings comprise 40% of its total holdings. The 25% allocation to the Gartmore Bond Index Fund underperformed the equity indexes during the reporting period.

As we look ahead, many investors will be watching to see whether the election results will allow the president and Congress to enact the equity-friendly legislation that they have proposed. In terms of initiatives that will likely affect the markets, we think that some of the most important ones include Social Security reform and an introduction of some sort of private accounting system, attempts to make Bush’s first-term tax cuts permanent, increased military spending, tort reform and attempts to pass a comprehensive energy bill. Social Security reform and the introduction of private accounts could mean more money flowing into stocks. Making the tax cuts permanent would improve the after-tax return on equity investments. Tort reform could improve corporate profits and make corporations less risk-averse. Increased military spending and energy policy changes would likely help the defense and energy sectors of the economy. The unknown equation is how much tension will center on fiscal policy and higher spending levels, given the current budget deficit.

Portfolio Managers: The Fund is managed by a team of portfolio managers and research analysts from Gartmore Mutual Fund Capital Trust.


	Class A: NADMX
	Class B: NBDMX
	Class C: NCDMX
	Class R: GMDRX
	Service Class: NSDMX

62 Annual Report 2004

Gartmore Investor Destinations Moderate Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One year		Inception¹


Class A	without sales charge²		8.36%		0.90%
	with sales charge³		2.12%		-0.39%

Class B	without sales charge²		7.72%		0.22%
	with sales charge⁴		2.72%		-0.20%

Class C⁵	without sales charge²		7.67%		0.19%
	with sales charge⁶		6.67%		0.19%

Class R^7,8			8.19%		0.31%

Service Class⁷			8.34%		0.88%

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 31, 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 effect 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 from the one year return 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.

Performance of a $10,000 Investment

LOGO


	Class A (A
	5.75%
	front-end
	sales
	charge				LB						S&P				Citigroup
	was				Aggregate						MidCap		Russell		3-Month T-
	deducted.)		Composite		Bond		S&P 500		MSCI EAFE		400		2000		Bill

Mar 31, 00		9425		10000		10000		10000		10000		10000		10000		10000
Oct 31, 00		9311		9870		10550		9599		8633		10477		9294		10348
Oct 31, 01		8341		8922		12085		7209		6503		9173		8114		10841
Oct 31, 02		7830		8428		12797		6120		5662		8735		7175		11041
Oct 31, 03		9063		9844		13425		7393		7223		11419		10286		11170
Oct 31, 04		9821		10725		14168		8089		8614		12679		11493		11291

[Additional columns below]

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


	CPI

Mar 31, 00		10000
Oct 31, 00		10169
Oct 31, 01		10386
Oct 31, 02		10596
Oct 31, 03		10812
Oct 31, 04		11113

Comparative performance of $10,000 invested in Class A shares of the Gartmore Investor Destinations Moderate Fund, Lehman Brothers Aggregate Bond Index (LB Aggregate Bond)(a), S&P 500 Index (S&P 500)(b), Morgan Stanley Capital International— Europe, Australasia, and Far East Index (MSCI EAFE)(c), the S&P MidCap 400 Index(d), the Russell 2000 Index (Russell 2000)(e), the Citigroup 3-Month T-Bill Index(f), the Moderate Composite Index (Moderate Composite)(g), and the Consumer Price Index (CPI)(h) 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 LB Aggregate Bond is an unmanaged, market value-weighted index of investment grade fixed-rate debt issues including government, corporate, asset-backed and mortgage-backed securities with maturities of one year or more.

(b)		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.

(c)		The MSCI EAFE is an unmanaged, market capitalization-weighted index that is designed to represent the performance of developed stock markets outside the United States and Canada.

(d)		The S&P MidCap 400 Index is an unmanaged index that measures the performance of mid-sized U.S. companies.

(e)		The Russell 2000 is an unmanaged index of approximately 2000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies.

(f)		The Citigroup 3-Month T-Bill Index is an average of the last 3-month treasury bill issues (excluding the current month-end bill).

(g)		The Moderate Composite is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Moderate Composite is a combination of the S&P 500 (30%), the LB Aggregate Bond (25%), the MSCI EAFE (15%), the Citigroup 3-Month T-Bill Index (15%), the S&P MidCap 400 Index (10%) and the Russell 2000 (5%).

(h)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

2004 Annual Report 63

Gartmore Investor Destinations Moderate Fund

Core Series


	Shareholder
	Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)



			Beginning		Ending		Expenses Paid			Annualized
Investor Destinations			Account Value		Account Value		During Period*			Expense Ratio
Moderate Fund			5/1/04		10/31/04


Class A	Actual		$	1,000	$	1,033	$	2.45			0.48%
	Hypothetical	¹	$	1,000	$	1,023	$	2.44			0.48%

Class B	Actual		$	1,000	$	1,031	$	6.13	��		1.20%
	Hypothetical	¹	$	1,000	$	1,019	$	6.11			1.20%

Class C	Actual		$	1,000	$	1,031	$	6.13			1.20%
	Hypothetical	¹	$	1,000	$	1,019	$	6.11			1.20%

Class R	Actual		$	1,000	$	1,033	$	3.17			0.62%
	Hypothetical	¹	$	1,000	$	1,022	$	3.16			0.62%

Service Class	Actual		$	1,000	$	1,033	$	3.07			0.60%
	Hypothetical	¹	$	1,000	$	1,022	$	3.05			0.60%


*	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.

64 Annual Report 2004

Gartmore Investor Destinations Moderate Fund

Portfolio Summary

(October 31, 2004)


Asset Allocation


Mutual Funds			92.7%
Fixed Contract			7.4%
Liabilities in excess of Other Assets			-0.1%

			100.0%


Top Industries


Equity Funds			60.5%
Fixed Income Funds			32.2%
Fixed Contract			7.4%

			100.1%*


Top Holdings


Gartmore S&P 500 Index Fund, Institutional Class			30.1%
Gartmore Bond Index Fund, Institutional Class			24.8%
Gartmore International Index Fund, Institutional Class			15.3%
Gartmore Mid Cap Market Index Fund, Institutional Class			10.1%
Nationwide Fixed Contract			7.4%
Gartmore Morley Enhanced Income Fund, Institutional Class			7.4%
Gartmore Small Cap Index Fund, Institutional Class			5.0%

			100.1%*


*	The aggregate market value of the industries exceeds 100% since the percents shown are not expressed as a percentage of total market value. Instead, these percents are expressed as a percentage of the total net assets of the Fund, which have been reduced by accrued, net liabilities of the Fund.

2004 Annual Report 65

Core Series


	Statement of Investments
	October 31, 2004

Gartmore Investor Destinations Moderate Fund



Mutual Funds (92.7%)


	Shares		Value

Equity Funds (60.5%)
Gartmore International Index Fund, Institutional Class (b)		12,928,893	$	98,776,741
Gartmore Mid Cap Market Index Fund, Institutional Class (b)		4,999,064		64,787,875
Gartmore S&P 500 Index Fund, Institutional Class (b)		19,751,290		192,970,102
Gartmore Small Cap Index Fund, Institutional Class (b)		2,883,516		32,410,720


				388,945,438



Fixed Income Funds (32.2%)
Gartmore Bond Index Fund, Institutional Class (b)		14,380,358		160,053,387
Gartmore Morley Enhanced Income Fund, Institutional Class (b)		5,195,557		47,591,299


				207,644,686


Total Mutual Funds				596,590,124



Fixed Contract (7.4%)

	Principal
	Amount		Value

Nationwide Fixed Contract, 3.50% (b) (c)	$	47,674,500		47,674,500


Total Fixed Contract				47,674,500


Total Investments (Cost $603,321,376) (a) — 100.1%				644,264,624
Liabilities in excess of other assets — (0.1)%				(373,322)


NET ASSETS — 100.0%			$	643,891,302


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

(b)		Investment in affiliate.

(c)		The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.

See notes to financial statements.

66 Annual Report 2004

Core Series


	Gartmore Investor Destinations
	Moderately Conservative Fund

For the annual period ended Oct. 31, 2004, the Gartmore Investor Destinations Moderately Conservative Fund returned 6.71% (Class A at NAV) versus 7.21% for its composite benchmark, which consists of 35% Lehman Brothers U.S. Aggregate Bond Index, 25% Citigroup 3-Month T-Bill Index, 20% S&P 500 Index, 10% S&P MidCap 400 Index and 10% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index. As of Oct. 1, 2004, the Fund’s composite benchmark was changed to 40% S&P 500 Index, 35% Lehman Brothers Aggregate Bond Index, and 25% Citigroup 3-Month T-Bill Index which returned 6.09% for the one-year period. The new composite benchmark was selected in an effort to simplify the comparability of our Fund returns to the returns of other, similar asset allocation products. For broader comparison, the average return for the Fund’s Lipper peer category of Income Funds was 8.11%.

The end of 2003 brought a significant rise in equities driven by better-than-expected earnings. The first half of 2004 showed flat to positive returns for the equity markets, which were influenced mainly by indecisive investors. This behavior stemmed from continued political tension in the United States, violence in Iraq, record high oil prices and improving economic data. Fears of terrorist activity resurfaced as the markets reacted sharply to the March 2004 commuter rail attacks in Madrid. The resulting “flight to quality” took over and top performers featured high-quality and value issues. Market uncertainty caused investors to change favor from the low-quality, low-price and high-beta securities that performed well in the fourth quarter of 2003.

The flow of economic news continually pointed toward a strengthening economy. The stock market, however, still faced a number of uncertain challenges, including the geopolitical situation, record high oil prices, the U.S. presidential election buildup, and a shifting Federal Reserve policy. Interest rates were fairly stable for the first half of the reporting period, rising uniformly across the maturity spectrum in March and April by about 30 to 40 basis points. In the second half of the period, interest rates were meaningfully affected in June, when the Federal Open Market Committee (FOMC) began increasing the target federal funds rate. Through October 2004, the FOMC increased the federal funds rate by a total of 75 basis points to reach 1.75%.

The Fund’s 10% allocation to the Gartmore International Index Fund was the best-performing component of the portfolio in absolute and relative terms, returning 2.76%. The Fund’s 10% allocation to the Gartmore Mid Cap Market Index Fund returned 1.05%. The 20% allocation to the Gartmore S&P 500 Index Fund also made a positive contribution to Fund performance, returning 1.85%. The Fund’s fixed-income holdings comprise 60% of its total holdings. The 35% allocation to the Gartmore Bond Index Fund underperformed the equity indexes during the reporting period, returning 1.88%.

As we look ahead, many investors will be watching to see whether the election results will allow the president and Congress to enact the equity-friendly legislation that they have proposed. In terms of initiatives that will likely affect the markets, we think that some of the most important ones include Social Security reform and an introduction of some sort of private accounting system, attempts to make Bush’s first-term tax cuts permanent, increased military spending, tort reform and attempts to pass a comprehensive energy bill. Social Security reform and the introduction of private accounts could mean more money flowing into stocks. Making the tax cuts permanent would improve the after-tax return on equity investments. Tort reform could improve corporate profits and make corporations less risk-averse. Increased military spending and energy policy changes would likely help the defense and energy sectors of the economy. The unknown equation is how much tension will center on fiscal policy and higher spending levels, given the current budget deficit.

Portfolio Managers: The Fund is managed by a team of portfolio managers and research analysts from Gartmore Mutual Fund Capital Trust.


	Class A: NADCX
	Class B: NBDCX
	Class C: NCDCX
	Class R: GMMRX
	Service Class: NSDCX

2004 Annual Report 67

Core Series

Gartmore Investor Destinations Moderately Conservative Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One year		Inception¹


Class A	without sales charge²		6.71%		2.26%
	with sales charge³		0.54%		0.95%

Class B	without sales charge²		5.99%		1.62%
	with sales charge⁴		0.99%		1.21%

Class C⁵	without sales charge²		5.99%		1.62%
	with sales charge⁶		4.99%		1.62%

Class R^7,8			6.55%		1.76%

Service Class⁷			6.59%		2.26%

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 31, 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 effect 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 from the one year return 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.

Performance of a $10,000 Investment

LOGO


	Class A (A
	5.75% front-
	end sales				LB
	charge was				Aggregate						S&P MidCap		Citigroup 3-
	deducted.)		Composite		Bond		S&P 500		MSCI EAFE		400		Month T-Bill

Mar 31, 00		9425		10000		10000		10000		10000		10000		10000
Oct 31, 00		9435		10105		10550		9599		8633		10477		10348
Oct 31, 01		9051		9770		12085		7209		6503		9173		10841
Oct 31, 02		8816		9570		12797		6120		5662		8735		11041
Oct 31, 03		9787		10703		13425		7393		7223		11419		10286
Oct 31, 04		10445		11463		14168		8089		8614		12679		11493

[Additional columns below]

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


	CPI

Mar 31, 00		10000
Oct 31, 00		10169
Oct 31, 01		10386
Oct 31, 02		10596
Oct 31, 03		11170
Oct 31, 04		11291

Comparative performance of $10,000 invested in Class A shares of the Gartmore Investor Destinations Moderately Conservative Fund, Lehman Brothers Aggregate Bond Index (LB Aggregate Bond)(a), S&P 500 Index (S&P 500)(b), Morgan Stanley Capital International— Europe, Australasia, and Far East Index (MSCI EAFE)(c), the S&P MidCap 400 Index(d), the Citigroup 3-Month T-Bill Index(e), the Moderately Conservative Composite Index (Moderately Conservative Composite)(f), and the Consumer Price Index (CPI)(g) 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 LB Aggregate Bond is an unmanaged, market value-weighted index of investment grade fixed-rate debt issues including government, corporate, asset-backed and mortgage-backed securities with maturities of one year or more.

(b)		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.

(c)		The MSCI EAFE is an unmanaged, market capitalization-weighted index that is designed to represent the performance of developed stock markets outside the United States and Canada.

(d)		The S&P MidCap 400 Index is an unmanaged index that measures the performance of mid-sized U.S. companies.

(e)		The Citigroup 3-Month T-Bill Index is an average of the last 3-month treasury bill issues (excluding the current month-end bill).

(f)		The Moderately Conservative Composite is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Moderately Conservative Composite is a combination of the LB Aggregate Bond (35%), the Citigroup 3-Month T-Bill Index (25%), the S&P 500 (20%), the S&P MidCap 400 Index (10%) and the MSCI EAFE (10%).

(g)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

68 Annual Report 2004

Gartmore Investor Destinations Moderately Conservative Fund

Shareholder

Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


			Beginning		Ending
Investor Destinations			Account Value		Account Value		Expenses Paid		Annualized
Moderately Conservative Fund			5/1/04		10/31/04		During Period*		Expense Ratio


Class A	Actual		$	1,000	$	1,031	$	2.81		0.55%
	Hypothetical	¹	$	1,000	$	1,022	$	2.80		0.55%

Class B	Actual		$	1,000	$	1,027	$	6.27		1.23%
	Hypothetical	¹	$	1,000	$	1,019	$	6.26		1.23%

Class C	Actual		$	1,000	$	1,027	$	6.27		1.23%
	Hypothetical	¹	$	1,000	$	1,019	$	6.26		1.23%

Class R	Actual		$	1,000	$	1,030	$	2.60		0.51%
	Hypothetical	¹	$	1,000	$	1,022	$	2.60		0.51%

Service Class	Actual		$	1,000	$	1,030	$	3.21		0.63%
	Hypothetical	¹	$	1,000	$	1,022	$	3.21		0.63%


*	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 69

Gartmore Investor Destinations Moderately Conservative Fund

Core Series


	Portfolio Summary
	(October 31, 2004)


Asset Allocation


Mutual Funds			87.6%
Fixed Contract			12.4%

			100.0%


Top Industries


Fixed Income Funds			47.2%
Equity Funds			40.4%
Fixed Contract			12.4%

			100.0%


Top Holdings


Gartmore Bond Index Fund, Institutional Class			34.8%
Gartmore S&P 500 Index Fund, Institutional Class			20.0%
Nationwide Fixed Contract			12.4%
Gartmore Morley Enhanced Income Fund, Institutional Class			12.4%
Gartmore International Index Fund, Institutional Class			10.3%
Gartmore Mid Cap Market Index Fund, Institutional Class			10.1%

			100.0%

70 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Investor Destinations Moderately Conservative Fund



Mutual Funds (87.6%)


	Shares		Value

Equity Funds (40.4%)
Gartmore International Index Fund, Institutional Class (b)		2,401,392	$	18,346,634
Gartmore Mid Cap Market Index Fund, Institutional Class (b)		1,392,593		18,048,003
Gartmore S&P 500 Index Fund, Institutional Class (b)		3,667,873		35,835,122


				72,229,759



Fixed Income Funds (47.2%)
Gartmore Bond Index Fund, Institutional Class (b)		5,607,935		62,416,313
Gartmore Morley Enhanced Income Fund, Institutional Class (b)		2,411,976		22,093,698


				84,510,011


Total Mutual Funds				156,739,770



Fixed Contract (12.4%)

	Principal
	Amount		Value


Nationwide Fixed Contract, 3.50% (b) (c)	$	22,132,284	$	22,132,284


Total Fixed Contract				22,132,284


Total Investments (Cost $169,563,173) (a) — 100.0%				178,872,054
Other assets in excess of liabilities — 0.0%				21,112


NET ASSETS — 100.0%			$	178,893,166


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

(b)		Investment in affiliate.

(c)		The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.

See notes to financial statements.

2004 Annual Report 71

Core Series


	Gartmore Investor Destinations Conservative Fund

For the annual period ended Oct. 31, 2004, the Gartmore Investor Destinations Conservative Fund returned 4.84% (Class A at NAV) versus 4.93% for its composite benchmark, which consists of 45% Citigroup 3-Month T-Bill Index, 35% Lehman Brothers U.S. Aggregate Bond Index, 10% S&P 500 Index, 5% S&P MidCap 400 Index and 5% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index. As of Oct. 1, 2004, the Fund’s composite benchmark was changed to 20% S&P 500 Index, 35% Lehman Brothers Aggregate Bond Index, and 45% Citigroup 3-Month T-Bill Index which returned 4.38% for the one-year period. The new composite benchmark was selected in an effort to simplify the comparability of our Fund returns to the returns of other, similar asset allocation products. For broader comparison, the average return for the Fund’s Lipper peer category of Income Funds was 8.09%.

Fears of terrorist activity resurfaced as the markets reacted sharply to the March 2004 commuter rail attacks in Madrid. The resulting “flight to quality” took over, and top performers featured high-quality and value issues. Market uncertainty caused investors to change favor from the low-quality, low-price and high-beta securities that performed well in the fourth quarter of 2003.

Interest rates were fairly stable for the first half of the reporting period, rising uniformly across the maturity spectrum in March and April by about 30 to 40 basis points. In the second half of the period, interest rates were meaningfully affected in June, when the Federal Open Market Committee (FOMC) began increasing the target federal funds rate. Through October 2004, the FOMC increased the federal funds rate by a total of 75 basis points to reach 1.75%. This movement caused interest rates in shorter maturities to rise. Interestingly, yields on longer-dated securities actually fell as the FOMC increased short-term rates. Several factors contributed to this so-called “flattening” of the yield curve. First there was increasing sentiment that inflation was not rising fast enough to warrant concern. Additional factors that affected the yield curve were uncertainty about the outcome of the election, terrorism fears, and mixed economic results in the third and fourth quarters of the reporting period.

The 5% allocation to the Gartmore International Index Fund was the best-performing component of the portfolio in absolute and relative terms, returning 0.92%. The 10% allocation to the Gartmore S&P 500 Index Fund also made a positive contribution to Fund performance, returning 0.92%. The Fund’s 5% allocation to the Gartmore Mid Cap Market Index Fund returned 0.52%.

The Fund’s fixed-income holdings comprise 80% of its total holdings. The 35% allocation to the Gartmore Bond Index Fund underperformed the equity indexes during the reporting period contributing 1.88%.

As we look ahead, many investors will be watching to see whether the election results will allow the president and Congress to enact the equity-friendly legislation that they have proposed. In terms of initiatives that will likely affect the markets, we think that some of the most important ones include Social Security reform and an introduction of some sort of private accounting system, attempts to make Bush’s first-term tax cuts permanent, increased military spending, tort reform and attempts to pass a comprehensive energy bill. Social Security reform and the introduction of private accounts could mean more money flowing into stocks. Making the tax cuts permanent would improve the after-tax return on equity investments. Tort reform could improve corporate profits and make corporations less risk-averse. Increased military spending and energy policy changes would likely help the defense and energy sectors of the economy. The unknown equation is how much tension will center on fiscal policy and higher spending levels, given the current budget deficit.

The Fund will continue to pursue its primary goal of maximizing total investment return by seeking income, and secondarily, long-term growth of capital. The Fund will remain weighted toward bonds and short-term investments while including some stock investments for long-term growth.

72 Annual Report 2004

Portfolio Manager: The Fund is managed by a team of portfolio managers and research analysts from Gartmore Mutual Fund Capital Trust.


	Class A: NDCAX
	Class B: NDCBX
	Class C: NDCCX
	Class R: GCFRX
	Service Class: NDCSX

2004 Annual Report 73

Core Series

Gartmore Investor Destinations Conservative Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One year		Inception¹


Class A	without sales charge²		4.84%		3.32%
	with sales charge³		-1.17%		2.00%

Class B	without sales charge²		4.12%		2.63%
	with sales charge⁴		-0.88%		2.23%

Class C⁵	without sales charge²		4.10%		2.61%
	with sales charge⁶		3.10%		2.61%

Class R^7,8			4.73%		2.76%

Service Class⁷			4.69%		3.30%

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 31, 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 effect 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 from the one year return 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.

Performance of a $10,000 Investment

LOGO


	Class A (A
	5.75% front-
	end sales				LB
	charge was		Composite		Aggregate						S&P MidCap		Citigroup 3-
	deducted.)		(new)*		Bond		S&P 500		MSCI EAFE		400		Month T-Bill

Mar 31, 00		9425		10000		10000		10000		10000		10000		10000
Oct 31, 00		9565		10263		10550		9599		8633		10477		10348
Oct 31, 01		9729		10500		12085		7209		6503		9173		10841
Oct 31, 02		9773		10568		12797		6120		5662		8735		11041
Oct 31, 03		10446		11320		13425		7393		7223		11419		10286
Oct 31, 04		10951		11870		14168		8089		8614		12679		11493

[Additional columns below]

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


	CPI

Mar 31, 00		10000
Oct 31, 00		10169
Oct 31, 01		10386
Oct 31, 02		10596
Oct 31, 03		11170
Oct 31, 04		11291

Comparative performance of $10,000 invested in Class A shares of the Gartmore Investor Destinations Conservative Fund, Lehman Brothers Aggregate Bond Index (LB Aggregate Bond)(a), S&P 500 Index (S&P 500)(b), Morgan Stanley Capital International— Europe, Australasia, and Far East Index (MSCI EAFE)(c), the S&P MidCap 400 Index(d), the Citigroup 3-Month T-Bill Index(e), the Conservative Composite Index (Conservative Composite)(f), and the Consumer Price Index (CPI)(g) 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 LB Aggregate Bond is an unmanaged, market value-weighted index of investment grade fixed-rate debt issues including government, corporate, asset-backed and mortgage-backed securities with maturities of one year or more.

(b)		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.

(c)		The MSCI EAFE is an unmanaged, market capitalization-weighted index that is designed to represent the performance of developed stock markets outside the United States and Canada.

(d)		The S&P MidCap 400 Index is an unmanaged index that measures the performance of mid-sized U.S. companies.

(e)		The Citigroup 3-Month T-Bill Index is an average of the last 3-month treasury bill issues (excluding the current month-end bill).

(f)		The Conservative Composite is an unmanaged, hypothetical representation of the performance of each of the Fund’s asset classes according to their respective weightings. The Conservative Composite is a combination of the Citigroup 3-Month T-Bill Index (45%), the LB Aggregate Bond (35%), the S&P 500 (10%), the S&P MidCap 400 Index (5%) and the MSCI EAFE (5%).

(g)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

74 Annual Report 2004

Gartmore Investor Destinations Conservative Fund

Shareholder

Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


		Beginning		Ending
Investor Destinations		Account Value		Account Value		Expenses Paid		Annualized
Conservative Fund		5/1/04		10/31/04		During Period*		Expense Ratio


Class A	Actual	$	1,000	$	1,025	$	2.65		0.52%
	Hypothetical ¹	$	1,000	$	1,022	$	2.65		0.52%

Class B	Actual	$	1,000	$	1,022	$	6.35		1.25%
	Hypothetical ¹	$	1,000	$	1,019	$	6.36		1.25%

Class C	Actual	$	1,000	$	1,022	$	6.35		1.25%
	Hypothetical ¹	$	1,000	$	1,019	$	6.36		1.25%

Class R	Actual	$	1,000	$	1,026	$	2.65		0.52%
	Hypothetical ¹	$	1,000	$	1,022	$	2.65		0.52%

Service Class	Actual	$	1,000	$	1,025	$	3.16		0.62%
	Hypothetical ¹	$	1,000	$	1,022	$	3.16		0.62%


*	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 75

Gartmore Investor Destinations Conservative Fund

Core Series


	Portfolio Summary
	(October 31, 2004)


Asset Allocation


Mutual Funds			77.7%
Fixed Contract			22.4%
Liabilities in excess of Other Assets			-0.1%

			100.0%


Top Industries


Fixed Income Funds			57.4%
Equity Funds			20.3%
Fixed Contract			22.4%

			100.1%*


Top Holdings


Gartmore Bond Index Fund, Institutional Class			35.0%
Nationwide Fixed Contract, 3.50%			22.4%
Gartmore Morley Enhanced Income Fund, Institutional Class			22.4%
Gartmore S&P 500 Index Fund, Institutional Class			10.0%
Gartmore International Index Fund, Institutional Class			5.2%
Gartmore Mid Cap Market Index Fund, Institutional Class			5.1%

			100.1%*


*	The aggregate market value of the industries exceeds 100% since the percents shown are not expressed as a percentage of total market value. Instead, these percents are expressed as a percentage of the total net assets of the Fund, which have been reduced by accrued, net liabilities of the Fund.

76 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Investor Destinations Conservative Fund



Mutual Funds (77.7%)


	Shares		Value

Equity Funds (20.3%)
Gartmore International Index Fund, Institutional Class (b)		832,106	$	6,357,288
Gartmore Mid Cap Market Index Fund, Institutional Class (b)		482,796		6,257,041
Gartmore S&P 500 Index Fund, Institutional Class (b)		1,271,771		12,425,207


				25,039,536



Fixed Income Funds (57.4%)
Gartmore Bond Index Fund, Institutional Class (b)		3,889,277		43,287,659
Gartmore Morley Enhanced Income Fund, Institutional Class (b)		3,011,424		27,584,641


				70,872,300


Total Mutual Funds				95,911,836



Fixed Contract (22.4%)

	Principal
	Amount		Value

Nationwide Fixed Contract, 3.50% (b) (c)	$	27,632,637		27,632,637


Total Fixed Contract				27,632,637


Total Investments (Cost $120,703,979) (a) — 100.1%				123,544,473
Liabilities in excess of other assets — (0.1)%				(154,191)


NET ASSETS — 100.0%			$	123,390,282


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

(b)		Investment in affiliate.

(c)		The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.

See notes to financial statements.

2004 Annual Report 77

Core Series


	Statements of Assets and Liabilities
	October 31, 2004


			Gartmore			Gartmore Investor			Gartmore			Gartmore Investor
			Investor Destinations			Destinations Moderately			Investor Destinations			Destinations Moderately
			Aggressive Fund			Aggressive Fund			Moderate Fund			Conservative Fund



Assets:
Investments in affiliated securities at value (cost $315,081,003; $558,680,843; $603,321,376; $169,563,173 and $120,703,979; respectively)			$	353,915,738		$	607,350,045		$	644,264,624		$	178,872,054
Cash				6			11			12			3
Interest and dividends receivable				75,466			422,505			797,127			320,496
Receivable for capital shares issued				230,907			428,006			438,137			137,531
Receivable from adviser				154			483			237			505
Prepaid expenses and other assets				12,044			19,755			23,684			19,380


		Total Assets		354,234,315			608,220,805			645,523,821			179,349,969

Liabilities:
Payable for investments purchased				544,326			1,239,258			1,106,958			329,052
Payable for capital shares redeemed				140,149			132,351			124,446			11,406
Accrued expenses and other payables
	Investment advisory fees			37,806			64,865			68,899			19,274
	Distribution fees			103,941			197,419			207,488			56,665
	Administrative servicing fees			37,160			61,242			66,697			22,019
	Other			28,357			52,501			58,031			18,387


		Total Liabilities		891,739			1,747,636			1,632,519			456,803


Net Assets			$	353,342,576		$	606,473,169		$	643,891,302		$	178,893,166

Represented by:
Capital			$	324,261,111		$	560,282,135		$	605,836,612		$	170,381,089
Accumulated net investment income (loss)				—			95,961			580,304			290,114
Accumulated net realized gains (losses) on investment transactions				(9,753,270	)		(2,574,129	)		(3,468,862	)		(1,086,918	)
Net unrealized appreciation (depreciation) on investments				38,834,735			48,669,202			40,943,248			9,308,881


Net Assets			$	353,342,576		$	606,473,169		$	643,891,302		$	178,893,166

Net Assets:
Class A Shares			$	19,737,415		$	35,416,274		$	35,156,632		$	11,156,971
Class B Shares				7,414,335			19,546,083			19,504,323			4,606,478
Class C Shares				43,667,578			99,210,776			102,057,894			26,760,188
Class R Shares				37,539			62,882			42,024			1,117
Service Class Shares				282,485,709			452,237,154			487,130,429			136,368,412


Total			$	353,342,576		$	606,473,169		$	643,891,302		$	178,893,166

Shares Outstanding (unlimited number of shares authorized):
Class A Shares				2,291,218			3,893,485			3,660,312			1,129,326
Class B Shares				868,889			2,174,431			2,043,320			466,216
Class C Shares				5,126,983			11,036,696			10,724,004			2,716,489
Class R Shares				4,383			6,979			4,396			113
Service Class Shares				32,725,733			49,780,127			50,799,436			13,760,150


Total				41,017,206			66,891,718			67,231,468			18,072,294

Net Asset Value:
Class A Shares			$	8.61		$	9.10		$	9.60		$	9.88
Class B Shares (a)			$	8.53		$	8.99		$	9.55		$	9.88
Class C Shares (b)			$	8.52		$	8.99		$	9.52		$	9.85
Class R Shares			$	8.56		$	9.01		$	9.56		$	9.91
Service Class Shares			$	8.63		$	9.08		$	9.59		$	9.91
Maximum Offering Price Per Share (100%/100%-maximum sales charge of net asset value adjusted to the nearest cent):
Class A Shares			$	9.14		$	9.66		$	10.19		$	10.48


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
			Investor Destinations
			Conservative Fund




Assets:
Investments in affiliated securities at value (cost $315,081,003; $558,680,843; $603,321,376; $169,563,173 and $120,703,979; respectively)			$	123,544,473
Cash				2
Interest and dividends receivable				244,903
Receivable for capital shares issued				—
Receivable from adviser				9,943
Prepaid expenses and other assets				16,128

		Total Assets		123,815,449

Liabilities:
Payable for investments purchased				346,547
Payable for capital shares redeemed				5,504
Accrued expenses and other payables
	Investment advisory fees			13,058
	Distribution fees			35,683
	Administrative servicing fees			12,666
	Other			11,709

		Total Liabilities		425,167

Net Assets			$	123,390,282

Represented by:
Capital			$	120,201,939
Accumulated net investment income (loss)				268,056
Accumulated net realized gains (losses) on investment transactions				79,793
Net unrealized appreciation (depreciation) on investments				2,840,494

Net Assets			$	123,390,282

Net Assets:
Class A Shares			$	5,007,763
Class B Shares				3,437,479
Class C Shares				13,682,592
Class R Shares				1,192
Service Class Shares				101,261,256

Total			$	123,390,282

Shares Outstanding (unlimited number of shares authorized):
Class A Shares				494,393
Class B Shares				339,827
Class C Shares				1,356,298
Class R Shares				117
Service Class Shares				9,978,130

Total				12,168,765

Net Asset Value:
Class A Shares			$	10.13
Class B Shares (a)			$	10.12
Class C Shares (b)			$	10.09
Class R Shares			$	10.15
Service Class Shares			$	10.15
Maximum Offering Price Per Share (100%/100%-maximum sales charge of net asset value adjusted to the nearest cent):
Class A Shares			$	10.75

Maximum Sales Charge — Class A Shares				5.75	%


(a)		For Class B Shares, the redemption price per share varies by the length of time shares 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.

78 Annual Report 2004

Statements of Operations

For the Year Ended October 31, 2004


			Gartmore			Gartmore Investor			Gartmore			Gartmore Investor
			Investor Destinations			Destinations Moderately			Investor Destinations			Destinations Moderately
			Aggressive Fund			Aggressive Fund			Moderate Fund			Conservative Fund



INVESTMENT INCOME:
Dividend income from affiliates			$	3,918,023		$	7,711,267		$	9,421,641		$	3,095,894
Interest income from affiliates				—			384,387			1,252,480			622,947


		Total Income		3,918,023			8,095,654			10,674,121			3,718,841

Expenses:
Investment advisory fees				332,308			568,544			616,998			184,054
Distribution fees Class A				31,500			62,907			61,582			20,966
Distribution fees Class B				46,179			126,062			127,802			37,224
Distribution fees Class C				271,948			618,853			644,057			191,063
Distribution fees Class R				35			39			35			4
Distribution fees Service Class				528,003			844,197			931,970			275,911
Administrative servicing fees Class A				3,375			7,276			7,991			4,949
Administrative servicing fees Class R				3			3			3			3
Administrative servicing fees Service Class				316,805			506,523			559,188			165,548
Registration and filing fees				70,620			67,625			65,046			58,148
Transfer agent fees				33,212			83,669			86,596			23,414
Other				64,227			112,412			119,268			38,202


	Total expenses before reimbursed expenses			1,698,215			2,998,110			3,220,536			999,486
Expenses reimbursed				(154	)		(483	)		(237	)		(505	)


	Total Expenses			1,698,061			2,997,627			3,220,299			998,981


Net Investment Income (Loss)				2,219,962			5,098,027			7,453,822			2,719,860

REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Realized gains (losses) on investment transactions with affiliates				675,445			1,008,307			1,727,040			534,386
Realized gain distributions from underlying funds				358,783			522,447			435,876			99,431


Net realized gains (losses) on investment transactions				1,034,228			1,530,754			2,162,916			633,817
Net change in unrealized appreciation/depreciation on investments				18,905,762			28,746,017			21,880,339			4,608,482


Net realized/unrealized gains (losses) on investment transactions				19,939,990			30,276,771			24,043,255			5,242,299


CHANGE IN NET ASSETS RESULTING FROM OPERATIONS			$	22,159,952		$	35,374,798		$	31,497,077		$	7,962,159

[Additional columns below]

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


			Gartmore
			Investor Destinations
			Conservative Fund




INVESTMENT INCOME:
Dividend income from affiliates			$	2,025,927
Interest income from affiliates				753,637

		Total Income		2,779,564

Expenses:
Investment advisory fees				123,689
Distribution fees Class A				7,832
Distribution fees Class B				24,431
Distribution fees Class C				88,405
Distribution fees Class R				4
Distribution fees Service Class				201,821
Administrative servicing fees Class A				666
Administrative servicing fees Class R				3
Administrative servicing fees Service Class				121,094
Registration and filing fees				61,021
Transfer agent fees				10,254
Other				24,851

	Total expenses before reimbursed expenses			664,071
Expenses reimbursed				(14,685	)

	Total Expenses			649,386

Net Investment Income (Loss)				2,130,178

REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Realized gains (losses) on investment transactions with affiliates				803,195
Realized gain distributions from underlying funds				34,014

Net realized gains (losses) on investment transactions				837,209
Net change in unrealized appreciation/depreciation on investments				1,062,558

Net realized/unrealized gains (losses) on investment transactions				1,899,767

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS			$	4,029,945

See notes to financial statements.

2004 Annual Report 79

Core Series


	Statements of Changes in Net Assets



	Gartmore Investor Destinations						Gartmore Investor Destinations
	Aggressive Fund						Moderately Aggressive 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)	$	2,219,962		$	824,793		$	5,098,027		$	2,000,207
Net realized gains (losses) on investment transactions		1,034,228			(8,056,608	)		1,530,754			(929,659	)
Net change in unrealized appreciation/ depreciation on investments		18,905,762			28,620,671			28,746,017			30,849,799


Change in net assets resulting from operations		22,159,952			21,388,856			35,374,798			31,920,347


Distributions to Class A Shareholders from:
Net investment income		(139,877	)		(13,611	)		(336,949	)		(51,195	)
Distributions to Class B Shareholders from:
Net investment income		(22,875	)		(2,317	)		(91,228	)		(13,675	)
Distributions to Class C Shareholders from:
Net investment income		(128,175	)		(12,926	)		(461,825	)		(42,335	)
Distributions to Class R Shareholders from:
Net investment income		(94	)		—			(124	)		—
Distributions to Service Class Shareholders from:
Net investment income		(2,076,163	)		(880,098	)		(4,111,940	)		(1,919,662	)


Change in net assets from shareholder distributions		(2,367,184	)		(908,952	)		(5,002,066	)		(2,026,867	)


Change in net assets from capital transactions		190,827,750			66,976,637			328,725,614			125,752,923


Change in net assets		210,620,518			87,456,541			359,098,346			155,646,403
Net Assets:
Beginning of period		142,722,058			55,265,517			247,374,823			91,728,420


End of period	$	353,342,576		$	142,722,058		$	606,473,169		$	247,374,823

[Additional columns below]

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



	Gartmore Investor Destinations
	Moderate Fund
	Year Ended			Year Ended
	October 31, 2004			October 31, 2003




FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss)	$	7,453,822		$	3,378,085
Net realized gains (losses) on investment transactions		2,162,916			(1,364,787	)
Net change in unrealized appreciation/ depreciation on investments		21,880,339			28,532,107


Change in net assets resulting from operations		31,497,077			30,545,405


Distributions to Class A Shareholders from:
Net investment income		(418,888	)		(75,479	)
Distributions to Class B Shareholders from:
Net investment income		(136,511	)		(25,797	)
Distributions to Class C Shareholders from:
Net investment income		(702,793	)		(60,098	)
Distributions to Class R Shareholders from:
Net investment income		(168	)		—
Distributions to Service Class Shareholders from:
Net investment income		(5,748,426	)		(3,226,920	)


Change in net assets from shareholder distributions		(7,006,786	)		(3,388,294	)


Change in net assets from capital transactions		333,780,395			132,736,369


Change in net assets		358,270,686			159,893,480
Net Assets:
Beginning of period		285,620,616			125,727,136


End of period	$	643,891,302		$	285,620,616

See notes to financial statements.

80 Annual Report 2004

Statements of Changes in Net Assets



	Gartmore Investor Destinations						Gartmore Investor Destinations
	Moderately Conservative Fund						Conservative 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)	$	2,719,860		$	1,351,399		$	2,130,178		$	1,263,587
Net realized gains (losses) on investment transactions		633,817			(765,707	)		837,209			(263,126	)
Net change in unrealized appreciation/ depreciation on investments		4,608,482			6,380,593			1,062,558			2,169,561


Change in net assets resulting from operations		7,962,159			6,966,285			4,029,945			3,170,022


Distributions to Class A Shareholders from:
Net investment income		(168,377	)		(63,276	)		(72,584	)		(40,386	)
Distributions to Class B Shareholders from:
Net investment income		(47,361	)		(15,094	)		(39,149	)		(16,767	)
Distributions to Class C Shareholders from:
Net investment income		(263,241	)		(35,454	)		(147,275	)		(25,258	)
Distributions to Class R Shareholders from:
Net investment income		(17	)		—			(19	)		—
Distributions to Service Class Shareholders from:
Net investment income		(2,042,335	)		(1,228,985	)		(1,696,250	)		(1,183,948	)


Change in net assets from shareholder distributions		(2,521,331	)		(1,342,809	)		(1,955,277	)		(1,266,359	)


Change in net assets from capital transactions		80,796,231			49,036,473			54,831,720			35,050,434


Change in net assets		86,237,059			54,659,949			56,906,388			36,954,097
Net Assets:
Beginning of period		92,656,107			37,996,158			66,483,894			29,529,797


End of period	$	178,893,166		$	92,656,107		$	123,390,282		$	66,483,894

See notes to financial statements.

2004 Annual Report 81


	Financial Highlights
	Selected Data for Each Share of Capital Outstanding

Core Series

Gartmore Investor Destinations Aggressive 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		0.02			(0.65	)		(0.63	)
Year Ended October 31, 2001	$	9.37		0.09			(2.01	)		(1.92	)
Year Ended October 31, 2002	$	7.36		0.07			(1.00	)		(0.93	)
Year Ended October 31, 2003	$	6.36		0.08			1.45			1.53
Year Ended October 31, 2004	$	7.81		0.10			0.80			0.90
Class B Shares
Period Ended October 31, 2000 (d) (e)	$	10.00		(0.02	)		(0.65	)		(0.67	)
Year Ended October 31, 2001	$	9.33		0.04			(2.00	)		(1.96	)
Year Ended October 31, 2002	$	7.31		0.02			(0.99	)		(0.97	)
Year Ended October 31, 2003	$	6.32		0.04			1.43			1.47
Year Ended October 31, 2004	$	7.74		0.04			0.80			0.84
Class C Shares
Period Ended October 31, 2001 (f)	$	8.44		(0.03	)		(1.05	)		(1.08	)
Year Ended October 31, 2002	$	7.36		—			(1.04	)		(1.04	)
Year Ended October 31, 2003	$	6.32		0.05			1.42			1.47
Year Ended October 31, 2004	$	7.73		0.04			0.80			0.84
Class R Shares
Period Ended October 31, 2003 (g)	$	7.45		—			0.29			0.29
Year Ended October 31, 2004	$	7.74		0.07			0.82			0.89
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	10.00		(0.01	)		(0.62	)		(0.63	)
Year Ended October 31, 2001	$	9.37		0.10			(2.01	)		(1.91	)
Year Ended October 31, 2002	$	7.36		0.07			(0.99	)		(0.92	)
Year Ended October 31, 2003	$	6.37		0.07			1.45			1.52
Year Ended October 31, 2004	$	7.82		0.09			0.81			0.90

[Additional columns below]

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



	Distributions
	Net									Net Asset
	Investment			Return of			Total			Value, End		Total
	Income			Capital			Distributions			of Period		Return (a)



Class A Shares
Period Ended October 31, 2000 (d)		—			—			—		$	9.37		(6.30%	) (h)
Year Ended October 31, 2001		(0.07	)		(0.02	)		(0.09	)	$	7.36		(20.53%	)
Year Ended October 31, 2002		(0.07	)		—			(0.07	)	$	6.36		(12.67%	)
Year Ended October 31, 2003		(0.08	)		—			(0.08	)	$	7.81		24.34%
Year Ended October 31, 2004		(0.10	)		—			(0.10	)	$	8.61		11.55%
Class B Shares
Period Ended October 31, 2000 (d) (e)		—			—			—		$	9.33		(6.70%	) (h)
Year Ended October 31, 2001		(0.05	)		(0.01	)		(0.06	)	$	7.31		(21.12%	)
Year Ended October 31, 2002		(0.02	)		—			(0.02	)	$	6.32		(13.30%	)
Year Ended October 31, 2003		(0.05	)		—			(0.05	)	$	7.74		23.42%
Year Ended October 31, 2004		(0.05	)		—			(0.05	)	$	8.53		10.86%
Class C Shares
Period Ended October 31, 2001 (f)		—			—			—		$	7.36		(12.80%	) (h)
Year Ended October 31, 2002		—			—			—		$	6.32		(13.30%	)
Year Ended October 31, 2003		(0.06	)		—			(0.06	)	$	7.73		23.41%
Year Ended October 31, 2004		(0.05	)		—			(0.05	)	$	8.52		10.88%
Class R Shares
Period Ended October 31, 2003 (g)		—			—			—		$	7.74		3.89%	(h)
Year Ended October 31, 2004		(0.07	)		—			(0.07	)	$	8.56		11.58%
Service Class Shares
Period Ended October 31, 2000 (d) (e)		—			—			—		$	9.37		(6.30%	) (h)
Year Ended October 31, 2001		(0.08	)		(0.02	)		(0.10	)	$	7.36		(20.55%	)
Year Ended October 31, 2002		(0.07	)		—			(0.07	)	$	6.37		(12.64%	)
Year Ended October 31, 2003		(0.07	)		—			(0.07	)	$	7.82		24.08%
Year Ended October 31, 2004		(0.09	)		—			(0.09	)	$	8.63		11.50%

[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		Expenses			(Loss)			Reimbursements)			Reimbursements)
	of 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)	$	9		0.71%	(i)		0.34%	(i)		394.30%	(i)		(393.25%	) (i)		253.64%
Year Ended October 31, 2001	$	7		0.71%			1.09%			3.71%			(1.91%	)		190.23%
Year Ended October 31, 2002	$	247		0.50%			1.42%			0.50%			1.42%			26.33%
Year Ended October 31, 2003	$	3,742		0.52%			1.04%			(j)			(j)			44.11%
Year Ended October 31, 2004	$	19,737		0.47%			1.06%			(j)			(j)			2.12%
Class B Shares
Period Ended October 31, 2000 (d) (e)	$	9		1.31%	(i)		(0.28%	) (i)		393.40%	(i)		(392.37%	) (i)		253.64%
Year Ended October 31, 2001	$	7		1.31%			0.50%			4.47%			(2.66%	)		190.23%
Year Ended October 31, 2002	$	48		1.24%			0.04%			1.27%			0.01%			26.33%
Year Ended October 31, 2003	$	1,557		1.25%			0.16%			(j)			(j)			44.11%
Year Ended October 31, 2004	$	7,414		1.20%			0.35%			(j)			(j)			2.12%
Class C Shares
Period Ended October 31, 2001 (f)	$	—		1.31%	(i)		(0.62%	) (i)		125.82%	(i)		(125.13%	) (i)		190.23%
Year Ended October 31, 2002	$	48		1.24%			(0.96%	)		1.48%			(1.20%	)		26.33%
Year Ended October 31, 2003	$	7,706		1.26%			0.22%			(j)			(j)			44.11%
Year Ended October 31, 2004	$	43,668		1.20%			0.32%			(j)			(j)			2.12%
Class R Shares
Period Ended October 31, 2003 (g)	$	1		0.82%	(i)		(0.46%	) (i)		0.92%	(i)		(0.56%	) (i)		44.11%
Year Ended October 31, 2004	$	38		0.63%			0.93%	(j)		(j)			(j)			2.12%
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	1,410		0.61%	(i)		(0.11%	) (i)		56.64%	(i)		(56.14%	) (i)		253.64%
Year Ended October 31, 2001	$	26,663		0.61%			0.38%			1.62%			(0.63%	)		190.23%
Year Ended October 31, 2002	$	54,923		0.61%			0.91%			0.67%			0.85%			26.33%
Year Ended October 31, 2003	$	129,717		0.61%			0.98%			0.63%			0.96%			44.11%
Year Ended October 31, 2004	$	282,486		0.59%			0.94%			0.60%			0.94%			2.12%


(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 31, 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)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(h)		Not annualized.
(i)		Annualized.
(j)		There were no fee reductions in this period.

See notes to financial statements.

82 Annual Report 2004

Gartmore Investor Destinations Moderately Aggressive 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
Period Ended October 31, 2000 (d)	$	10.00		0.06			(0.47	)		(0.41	)		—			—		$	9.59		(4.08%	) (h)
Year Ended October 31, 2001	$	9.59		0.17			(1.71	)		(1.54	)		(0.13	)		(0.13	)	$	7.92		(16.16%	)
Year Ended October 31, 2002	$	7.92		0.10			(0.87	)		(0.77	)		(0.11	)		(0.11	)	$	7.04		(9.78%	)
Year Ended October 31, 2003	$	7.04		0.11			1.31			1.42			(0.11	)		(0.11	)	$	8.35		20.42%
Year Ended October 31, 2004	$	8.35		0.12			0.75			0.87			(0.12	)		(0.12	)	$	9.10		10.48%
Class B Shares
Period Ended October 31, 2000 (d)	$	10.00		0.03			(0.47	)		(0.44	)		—			—		$	9.56		(4.40%	) (h)
Year Ended October 31, 2001	$	9.56		0.12			(1.71	)		(1.59	)		(0.09	)		(0.09	)	$	7.88		(16.75%	)
Year Ended October 31, 2002	$	7.88		0.06			(0.88	)		(0.82	)		(0.07	)		(0.07	)	$	6.99		(10.46%	)
Year Ended October 31, 2003	$	6.99		0.07			1.28			1.35			(0.08	)		(0.08	)	$	8.26		19.43%
Year Ended October 31, 2004	$	8.26		0.07			0.73			0.80			(0.07	)		(0.07	)	$	8.99		9.66%
Class C Shares
Period Ended October 31, 2001 (f)	$	8.83		(0.04	)		(0.88	)		(0.92	)		—			—		$	7.91		(10.42%	) (h)
Year Ended October 31, 2002	$	7.91		—			(0.91	)		(0.91	)		—			—		$	7.00		(10.33%	)
Year Ended October 31, 2003	$	7.00		0.08			1.28			1.36			(0.09	)		(0.09	)	$	8.27		19.64%
Year Ended October 31, 2004	$	8.27		0.07			0.72			0.79			(0.07	)		(0.07	)	$	8.99		9.58%
Class R Shares
Period Ended October 31, 2003 (g)	$	8.01		—			0.25			0.25			—			—		$	8.26		3.12%	(h)
Year Ended October 31, 2004	$	8.26		0.10			0.75			0.85			(0.10	)		(0.10	)	$	9.01		10.27%
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	10.00		0.07			(0.47	)		(0.40	)		(0.01	)		(0.01	)	$	9.59		(4.04%	) (h)
Year Ended October 31, 2001	$	9.59		0.15			(1.67	)		(1.52	)		(0.16	)		(0.16	)	$	7.91		(16.05%	)
Year Ended October 31, 2002	$	7.91		0.11			(0.88	)		(0.77	)		(0.11	)		(0.11	)	$	7.03		(9.88%	)
Year Ended October 31, 2003	$	7.03		0.10			1.31			1.41			(0.10	)		(0.10	)	$	8.34		20.26%
Year Ended October 31, 2004	$	8.34		0.11			0.74			0.85			(0.11	)		(0.11	)	$	9.08		10.22%

[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)	$	10		0.71%	(i)		1.10%	(i)		396.10%	(i)		(394.29%	) (i)		270.89%
Year Ended October 31, 2001	$	8		0.71%			1.44%			3.28%			(1.13%	)		226.13%
Year Ended October 31, 2002	$	1,072		0.49%			1.69%			0.49%			1.69%			28.41%
Year Ended October 31, 2003	$	9,729		0.48%			1.42%			(j)			(j)			8.08%
Year Ended October 31, 2004	$	35,416		0.47%			1.37%			0.47%			1.37%			2.74%
Class B Shares
Period Ended October 31, 2000 (d)	$	10		1.31%	(i)		0.49%	(i)		397.48%	(i)		(395.68%	) (i)		270.89%
Year Ended October 31, 2001	$	8		1.31%			1.32%			4.04%			(1.41%	)		226.13%
Year Ended October 31, 2002	$	130		1.25%			1.39%			1.26%			1.38%			28.41%
Year Ended October 31, 2003	$	5,740		1.22%			0.63%			(j)			(j)			8.08%
Year Ended October 31, 2004	$	19,546		1.19%			0.67%			1.19%			0.67%			2.74%
Class C Shares
Period Ended October 31, 2001 (f)	$	—		1.31%	(i)		(0.68%	) (i)		124.67%	(i)		(124.04%	) (i)		226.13%
Year Ended October 31, 2002	$	15		1.25%			(0.21%	)		3.34%			(2.30%	)		28.41%
Year Ended October 31, 2003	$	17,804		1.22%			0.64%			(j)			(j)			8.08%
Year Ended October 31, 2004	$	99,211		1.19%			0.66%			1.19%			0.66%			2.74%
Class R Shares
Period Ended October 31, 2003 (g)	$	1		0.75%	(i)		(0.04%	) (i)		0.85%	(i)		(0.14%	) (i)		8.08%
Year Ended October 31, 2004	$	63		0.62%			1.19%			(j)			(j)			2.74%
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	998		0.61%	(i)		1.23%	(i)		66.76%	(i)		(64.92%	) (i)		270.89%
Year Ended October 31, 2001	$	36,670		0.61%			1.15%			1.44%			0.32%			226.13%
Year Ended October 31, 2002	$	90,512		0.61%			1.46%			0.65%			1.42%			28.41%
Year Ended October 31, 2003	$	214,101		0.61%			1.36%			(j)			(j)			8.08%
Year Ended October 31, 2004	$	452,237		0.59%			1.26%			0.59%			1.26%			2.74%


(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 31, 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)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(h)		Not annualized.
(i)		Annualized.
(j)		There were no fee reductions in this period.

See notes to financial statements.

2004 Annual Report 83


	Financial Highlights
	Selected Data for Each Share of Capital Outstanding

Core Series

Gartmore Investor Destinations Moderate 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) (e)	$	10.00		0.11			(0.23	)		(0.12	)
Year Ended October 31, 2001 (e)	$	9.81		0.22			(1.23	)		(1.01	)
Year Ended October 31, 2002	$	8.64		0.17			(0.69	)		(0.52	)
Year Ended October 31, 2003	$	7.94		0.15			1.08			1.23
Year Ended October 31, 2004	$	9.01		0.17			0.58			0.75
Class B Shares
Period Ended October 31, 2000 (d) (e)	$	10.00		0.08			(0.24	)		(0.16	)
Year Ended October 31, 2001	$	9.81		0.19			(1.25	)		(1.06	)
Year Ended October 31, 2002	$	8.64		0.11			(0.71	)		(0.60	)
Year Ended October 31, 2003	$	7.92		0.11			1.06			1.17
Year Ended October 31, 2004	$	8.96		0.10			0.59			0.69
Class C Shares
Period Ended October 31, 2001 (f)	$	9.32		(0.04	)		(0.62	)		(0.66	)
Year Ended October 31, 2002	$	8.66		0.04			(0.75	)		(0.71	)
Year Ended October 31, 2003	$	7.90		0.11			1.06			1.17
Year Ended October 31, 2004	$	8.94		0.10			0.58			0.68
Class R Shares
Period Ended October 31, 2003 (g)	$	8.77		0.01			0.18			0.19
Year Ended October 31, 2004	$	8.96		0.13			0.60			0.73
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	10.00		0.11			(0.22	)		(0.11	)
Year Ended October 31, 2001	$	9.82		0.19			(1.19	)		(1.00	)
Year Ended October 31, 2002	$	8.63		0.17			(0.71	)		(0.54	)
Year Ended October 31, 2003	$	7.92		0.15			1.07			1.22
Year Ended October 31, 2004	$	8.99		0.16			0.59			0.75

[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) (e)		(0.07	)		(0.07	)	$	9.81		(1.21%	) (h)
Year Ended October 31, 2001 (e)		(0.16	)		(0.16	)	$	8.64		(10.41%	)
Year Ended October 31, 2002		(0.18	)		(0.18	)	$	7.94		(6.12%	)
Year Ended October 31, 2003		(0.16	)		(0.16	)	$	9.01		15.75%
Year Ended October 31, 2004		(0.16	)		(0.16	)	$	9.60		8.36%
Class B Shares
Period Ended October 31, 2000 (d) (e)		(0.03	)		(0.03	)	$	9.81		(1.61%	) (h)
Year Ended October 31, 2001		(0.11	)		(0.11	)	$	8.64		(10.84%	)
Year Ended October 31, 2002		(0.12	)		(0.12	)	$	7.92		(6.96%	)
Year Ended October 31, 2003		(0.13	)		(0.13	)	$	8.96		14.89%
Year Ended October 31, 2004		(0.10	)		(0.10	)	$	9.55		7.72%
Class C Shares
Period Ended October 31, 2001 (f)		—			—		$	8.66		(7.08%	) (h)
Year Ended October 31, 2002		(0.05	)		(0.05	)	$	7.90		(7.13%	)
Year Ended October 31, 2003		(0.13	)		(0.13	)	$	8.94		14.98%
Year Ended October 31, 2004		(0.10	)		(0.10	)	$	9.52		7.67%
Class R Shares
Period Ended October 31, 2003 (g)		—			—		$	8.96		2.17%	(h)
Year Ended October 31, 2004		(0.13	)		(0.13	)	$	9.56		8.19%
Service Class Shares
Period Ended October 31, 2000 (d) (e)		(0.07	)		(0.07	)	$	9.82		(1.10%	) (h)
Year Ended October 31, 2001		(0.19	)		(0.19	)	$	8.63		(10.26%	)
Year Ended October 31, 2002		(0.17	)		(0.17	)	$	7.92		(6.35%	)
Year Ended October 31, 2003		(0.15	)		(0.15	)	$	8.99		15.59%
Year Ended October 31, 2004		(0.15	)		(0.15	)	$	9.59		8.34%

[Additional columns below]

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



	Ratios / Supplemental Data
												Ratio of Net
												Investment
						Ratio of Net			Ratio of			Income
						Investment			Expenses			(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) (e)	$	10		0.71%	(i)		1.97%	(i)		392.91%	(i)		(390.23%	) (i)		366.93%
Year Ended October 31, 2001 (e)	$	9		0.71%			2.40%			2.39%			0.72%			258.23%
Year Ended October 31, 2002	$	1,186		0.48%			2.37%			0.48%			2.37%			34.36%
Year Ended October 31, 2003	$	9,972		0.47%			1.88%			(j)			(j)			13.50%
Year Ended October 31, 2004	$	35,157		0.47%			1.78%			0.47%			1.78%			5.64%
Class B Shares
Period Ended October 31, 2000 (d) (e)	$	10		1.31%	(i)		1.35%	(i)		393.51%	(i)		(390.85%	) (i)		366.93%
Year Ended October 31, 2001	$	9		1.31%			2.11%			4.08%			(0.66%	)		258.23%
Year Ended October 31, 2002	$	161		1.23%			1.33%			1.24%			1.32%			34.36%
Year Ended October 31, 2003	$	6,229		1.21%			1.09%			(j)			(j)			13.50%
Year Ended October 31, 2004	$	19,504		1.19%			1.07%			1.19%			1.07%			5.64%
Class C Shares
Period Ended October 31, 2001 (f)	$	—		1.31%	(i)		(0.67%	) (i)		123.09%	(i)		(122.45%	) (i)		258.23%
Year Ended October 31, 2002	$	416		1.23%			1.89%			1.29%			1.83%			34.36%
Year Ended October 31, 2003	$	21,995		1.22%			0.98%			(j)			(j)			13.50%
Year Ended October 31, 2004	$	102,058		1.19%			1.07%			1.19%			1.07%			5.64%
Class R Shares
Period Ended October 31, 2003 (g)	$	1		0.74%	(i)		0.68%	(i)		0.84%	(i)		0.58%	(i)		13.50%
Year Ended October 31, 2004	$	42		0.62%			1.79%			(j)			(j)			5.64%
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	871		0.61%	(i)		2.04%	(i)		114.83%	(i)		(112.80%	) (i)		366.93%
Year Ended October 31, 2001	$	58,228		0.61%			2.06%			0.97%			1.70%			258.23%
Year Ended October 31, 2002	$	123,963		0.61%			2.13%			0.65%			2.09%			34.36%
Year Ended October 31, 2003	$	247,424		0.60%			1.82%			(j)			(j)			13.50%
Year Ended October 31, 2004	$	487,130		0.59%			1.66%			0.59%			1.66%			5.64%


(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 31, 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)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(h)		Not annualized.
(i)		Annualized.
(j)		There were no fee reductions in this period.

See notes to financial statements.

84 Annual Report 2004

Gartmore Investor Destinations Moderately Conservative 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) (e)	$	10.00		0.18			(0.17	)		0.01
Year Ended October 31, 2001 (e)	$	9.89		0.35			(0.75	)		(0.40	)
Year Ended October 31, 2002 (e)	$	9.19		0.26			(0.49	)		(0.23	)
Year Ended October 31, 2003	$	8.71		0.20			0.75			0.95
Year Ended October 31, 2004	$	9.44		0.19			0.44			0.63
Class B Shares
Period Ended October 31, 2000 (d) (e)	$	10.00		0.14			(0.17	)		(0.03	)
Year Ended October 31, 2001	$	9.89		0.29			(0.75	)		(0.46	)
Year Ended October 31, 2002 (e)	$	9.20		0.20			(0.49	)		(0.29	)
Year Ended October 31, 2003	$	8.72		0.14			0.75			0.89
Year Ended October 31, 2004	$	9.44		0.13			0.43			0.56
Class C Shares
Period Ended October 31, 2001 (f)	$	9.64		(0.04	)		(0.38	)		(0.42	)
Year Ended October 31, 2002	$	9.22		—			(0.44	)		(0.44	)
Year Ended October 31, 2003	$	8.72		0.15			0.73			0.88
Year Ended October 31, 2004	$	9.42		0.13			0.43			0.56
Class R Shares
Period Ended October 31, 2003 (g)	$	9.33		0.01			0.11			0.12
Year Ended October 31, 2004	$	9.45		0.20			0.42			0.62
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	10.00		0.16			(0.14	)		0.02
Year Ended October 31, 2001	$	9.90		0.31			(0.70	)		(0.39	)
Year Ended October 31, 2002 (e)	$	9.20		0.26			(0.50	)		(0.24	)
Year Ended October 31, 2003	$	8.72		0.19			0.76			0.95
Year Ended October 31, 2004	$	9.47		0.19			0.43			0.62

[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) (e)		(0.12	)		(0.12	)	$	9.89		0.10%	(h)
Year Ended October 31, 2001 (e)		(0.30	)		(0.30	)	$	9.19		(4.06%	)
Year Ended October 31, 2002 (e)		(0.25	)		(0.25	)	$	8.71		(2.60%	)
Year Ended October 31, 2003		(0.22	)		(0.22	)	$	9.44		11.02%
Year Ended October 31, 2004		(0.19	)		(0.19	)	$	9.88		6.71%
Class B Shares
Period Ended October 31, 2000 (d) (e)		(0.08	)		(0.08	)	$	9.89		(0.26%	) (h)
Year Ended October 31, 2001		(0.23	)		(0.23	)	$	9.20		(4.67%	)
Year Ended October 31, 2002 (e)		(0.19	)		(0.19	)	$	8.72		(3.22%	)
Year Ended October 31, 2003		(0.17	)		(0.17	)	$	9.44		10.37%
Year Ended October 31, 2004		(0.12	)		(0.12	)	$	9.88		5.99%
Class C Shares
Period Ended October 31, 2001 (f)		—			—		$	9.22		(4.36%	) (h)
Year Ended October 31, 2002		(0.06	)		(0.06	)	$	8.72		(3.14%	)
Year Ended October 31, 2003		(0.18	)		(0.18	)	$	9.42		10.26%
Year Ended October 31, 2004		(0.13	)		(0.13	)	$	9.85		5.99%
Class R Shares
Period Ended October 31, 2003 (g)		—			—		$	9.45		1.29%	(h)
Year Ended October 31, 2004		(0.16	)		(0.16	)	$	9.91		6.55%
Service Class Shares
Period Ended October 31, 2000 (d) (e)		(0.12	)		(0.12	)	$	9.90		0.18%	(h)
Year Ended October 31, 2001		(0.31	)		(0.31	)	$	9.20		(3.99%	)
Year Ended October 31, 2002 (e)		(0.24	)		(0.24	)	$	8.72		(2.70%	)
Year Ended October 31, 2003		(0.20	)		(0.20	)	$	9.47		11.09%
Year Ended October 31, 2004		(0.18	)		(0.18	)	$	9.91		6.59%

[Additional columns below]

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



	Ratios / Supplemental Data
												Ratio of Net
												Investment
						Ratio of Net			Ratio of			Income
						Investment			Expenses			(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) (e)	$	10		0.71%	(i)		3.02%	(i)		438.49%	(i)		(434.76%	) (i)		425.17%
Year Ended October 31, 2001 (e)	$	10		0.71%			3.66%			3.81%			0.56%			235.84%
Year Ended October 31, 2002 (e)	$	898		0.50%			2.99%			0.51%			2.98%			49.00%
Year Ended October 31, 2003	$	4,482		0.53%			2.34%			(j)			(j)			19.93%
Year Ended October 31, 2004	$	11,157		0.52%			2.12%			0.52%			2.12%			6.66%
Class B Shares
Period Ended October 31, 2000 (d) (e)	$	10		1.31%	(i)		2.44%	(i)		439.61%	(i)		(435.86%	) (i)		425.17%
Year Ended October 31, 2001	$	10		1.31%			3.14%			4.52%			(0.07%	)		235.84%
Year Ended October 31, 2002 (e)	$	83		1.27%			2.24%			1.29%			2.22%			49.00%
Year Ended October 31, 2003	$	2,453		1.28%			1.52%			(j)			(j)			19.93%
Year Ended October 31, 2004	$	4,606		1.21%			1.41%			(j)			(j)			6.66%
Class C Shares
Period Ended October 31, 2001 (f)	$	—		1.31%	(i)		(0.79%	) (i)		122.29%	(i)		(121.77%	) (i)		235.84%
Year Ended October 31, 2002	$	88		1.27%			2.48%			1.33%			2.42%			49.00%
Year Ended October 31, 2003	$	7,530		1.29%			1.45%			(j)			(j)			19.93%
Year Ended October 31, 2004	$	26,760		1.22%			1.42%			(j)			(j)			6.66%
Class R Shares
Period Ended October 31, 2003 (g)	$	1		0.81%	(i)		1.34%	(i)		0.91%	(i)		1.24%	(i)		19.93%
Year Ended October 31, 2004	$	1		0.60%			2.01%			(j)			(j)			6.66%
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	2,231		0.61%	(i)		2.85%	(i)		32.84%	(i)		(29.38%	) (i)		425.17%
Year Ended October 31, 2001	$	14,772		0.61%			3.34%			2.50%			1.45%			235.84%
Year Ended October 31, 2002 (e)	$	36,927		0.61%			2.82%			0.69%			2.74%			49.00%
Year Ended October 31, 2003	$	78,189		0.61%			2.28%			0.65%			2.24%			19.93%
Year Ended October 31, 2004	$	136,368		0.61%			2.01%			0.61%			2.01%			6.66%


(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 31, 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)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(h)		Not annualized.
(i)		Annualized.
(j)		There were no fee reductions in this period.

See notes to financial statements.

2004 Annual Report 85


	Financial Highlights
	Selected Data for Each Share of Capital Outstanding

Core Series

Gartmore Investor Destinations Conservative 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) (e)	$	10.00		0.23			(0.08	)		0.15
Year Ended October 31, 2001	$	9.99		0.45			(0.28	)		0.17
Year Ended October 31, 2002	$	9.78		0.28			(0.24	)		0.04
Year Ended October 31, 2003	$	9.51		0.26			0.39			0.65
Year Ended October 31, 2004	$	9.88		0.22			0.25			0.47
Class B Shares
Period Ended October 31, 2000 (d) (e)	$	10.00		0.19			(0.08	)		0.11
Year Ended October 31, 2001	$	9.99		0.38			(0.28	)		0.10
Year Ended October 31, 2002	$	9.79		0.24			(0.25	)		(0.01	)
Year Ended October 31, 2003	$	9.53		0.19			0.38			0.57
Year Ended October 31, 2004	$	9.87		0.15			0.25			0.40
Class C Shares
Period Ended October 31, 2001 (f)	$	9.97		(0.05	)		(0.13	)		(0.18	)
Year Ended October 31, 2002	$	9.79		0.23			(0.25	)		(0.02	)
Year Ended October 31, 2003	$	9.51		0.20			0.37			0.57
Year Ended October 31, 2004	$	9.85		0.16			0.24			0.40
Class R Shares
Period Ended October 31, 2003 (g)	$	9.83		0.02			0.02			0.04
Year Ended October 31, 2004	$	9.87		0.22			0.24			0.46
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	10.00		0.24			(0.09	)		0.15
Year Ended October 31, 2001	$	10.00		0.41			(0.24	)		0.17
Year Ended October 31, 2002	$	9.79		0.31			(0.26	)		0.05
Year Ended October 31, 2003	$	9.53		0.26			0.38			0.64
Year Ended October 31, 2004	$	9.90		0.23			0.23			0.46

[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) (e)		(0.16	)		(0.16	)	$	9.99		1.49%	(h)
Year Ended October 31, 2001		(0.38	)		(0.38	)	$	9.78		1.71%
Year Ended October 31, 2002		(0.31	)		(0.31	)	$	9.51		0.45%
Year Ended October 31, 2003		(0.28	)		(0.28	)	$	9.88		6.89%
Year Ended October 31, 2004		(0.22	)		(0.22	)	$	10.13		4.84%
Class B Shares
Period Ended October 31, 2000 (d) (e)		(0.12	)		(0.12	)	$	9.99		1.12%	(h)
Year Ended October 31, 2001		(0.30	)		(0.30	)	$	9.79		1.04%
Year Ended October 31, 2002		(0.25	)		(0.25	)	$	9.53		(0.15%	)
Year Ended October 31, 2003		(0.23	)		(0.23	)	$	9.87		6.05%
Year Ended October 31, 2004		(0.15	)		(0.15	)	$	10.12		4.12%
Class C Shares
Period Ended October 31, 2001 (f)		—			—		$	9.79		(1.81%	) (h)
Year Ended October 31, 2002		(0.26	)		(0.26	)	$	9.51		(0.21%	)
Year Ended October 31, 2003		(0.23	)		(0.23	)	$	9.85		6.03%
Year Ended October 31, 2004		(0.16	)		(0.16	)	$	10.09		4.10%
Class R Shares
Period Ended October 31, 2003 (g)		—			—		$	9.87		0.41%	(h)
Year Ended October 31, 2004		(0.18	)		(0.18	)	$	10.15		4.73%
Service Class Shares
Period Ended October 31, 2000 (d) (e)		(0.15	)		(0.15	)	$	10.00		1.57%	(h)
Year Ended October 31, 2001		(0.38	)		(0.38	)	$	9.79		1.75%
Year Ended October 31, 2002		(0.31	)		(0.31	)	$	9.53		0.48%
Year Ended October 31, 2003		(0.27	)		(0.27	)	$	9.90		6.76%
Year Ended October 31, 2004		(0.21	)		(0.21	)	$	10.15		4.69%

[Additional columns below]

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



	Ratios / Supplemental Data
												Ratio of Net
												Investment
						Ratio of Net			Ratio of			Income
						Investment			Expenses			(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) (e)	$	10		0.71%	(i)		3.86%	(i)		441.97%	(i)		(437.40%	) (i)		449.16%
Year Ended October 31, 2001	$	10		0.71%			4.45%			6.91%			(1.75%	)		176.59%
Year Ended October 31, 2002	$	802		0.50%			3.62%			0.50%			3.62%			46.89%
Year Ended October 31, 2003	$	1,798		0.53%			2.83%			(j)			(j)			32.93%
Year Ended October 31, 2004	$	5,008		0.50%			2.43%			0.51%			2.43%			11.67%
Class B Shares
Period Ended October 31, 2000 (d) (e)	$	10		1.31%	(i)		3.26%	(i)		443.13%	(i)		(438.56%	) (i)		449.16%
Year Ended October 31, 2001	$	10		1.31%			3.82%			7.70%			(2.57%	)		176.59%
Year Ended October 31, 2002	$	75		1.27%			2.77%			1.33%			2.71%			46.89%
Year Ended October 31, 2003	$	1,622		1.29%			1.96%			(j)			(j)			32.93%
Year Ended October 31, 2004	$	3,437		1.23%			1.70%			(j)			(j)			11.67%
Class C Shares
Period Ended October 31, 2001 (f)	$	—		1.31%	(i)		(0.90%	) (i)		121.18%	(i)		(120.77%	) (i)		176.59%
Year Ended October 31, 2002	$	400		1.27%			2.75%			1.29%			2.73%			46.89%
Year Ended October 31, 2003	$	3,592		1.29%			1.95%			(j)			(j)			32.93%
Year Ended October 31, 2004	$	13,683		1.24%			1.69%			(j)			(j)			11.67%
Class R Shares
Period Ended October 31, 2003 (g)	$	1		0.84%	(i)		2.03%	(i)		0.94%	(i)		1.93%	(i)		32.93%
Year Ended October 31, 2004	$	1		0.62%			2.30%			(j)			(j)			11.67%
Service Class Shares
Period Ended October 31, 2000 (d) (e)	$	492		0.61%	(i)		4.32%	(i)		154.74%	(i)		(149.81%	) (i)		449.16%
Year Ended October 31, 2001	$	11,459		0.61%			4.17%			2.58%			2.20%			176.59%
Year Ended October 31, 2002	$	28,253		0.61%			3.49%			0.72%			3.38%			46.89%
Year Ended October 31, 2003	$	59,472		0.61%			2.73%			0.67%			2.68%			32.93%
Year Ended October 31, 2004	$	101,261		0.61%			2.31%			0.63%			2.29%			11.67%


(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 31, 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)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(h)		Not annualized.
(i)		Annualized.
(j)		There were no fee reductions in this period.

See notes to financial statements.

86 Annual Report 2004

Core Series


	Gartmore Bond Fund

For the annual period ended Oct. 31, 2004, the Gartmore Bond Fund returned 5.37% (Class A at NAV) versus 5.59% for its benchmark, the Lehman Brothers Government/ Credit Bond Index. For broader comparison, the average return for the Fund’s Lipper peer category of Corporate Debt A Rated Funds was 5.18%.

The Federal Reserve began to raise the federal funds rate in 2004. Throughout the reporting period, the Fed raised rates from 1.00% to 1.75%. The Treasury market has seen volatility in 2004, much of it caused by the unpredictable monthly nonfarm payroll employment numbers. The financial markets have been using employment as a barometer for the strength of the economy.

Long treasury bonds and corporate bonds aided the Fund’s annual performance and short corporate bonds detracted from the Fund’s annual performance. We reduced intermediate exposure because we expected a flattening yield curve, which aided the Fund’s performance. The reason for this move is that as the Treasury yield curve—which illustrates the relationship between and for a set of similar—flattens, intermediate bonds underperform. Corporate spreads—the interest-rate differential of various corporate bonds of differing maturities—continued to tighten during the period. The contraction of corporate bond spreads, which causes prices to rise, helped performance due to the Fund’s overweight in corporate bonds relative to the benchmark.

As opportunities arise, the Fund will continue to reduce its holdings in the intermediate part of the Treasury yield curve in anticipation of additional yield curve flattening. The Fund will remain adequately diversified to mitigate exposure to credit-specific risk. While the Fed continues to raise rates, we will seek to keep the duration of the Fund shorter than that of the benchmark.

Portfolio Managers: Gary Davis and Mabel Brown


	Class A: NBDAX
	Class B: GBDBX
	Class C: GBDCX
	Class D: MUIBX
	Class R: GBDRX
	Class X: GBXDX
	Class Y: GBDYX
	Institutional Class: GBDIX

2004 Annual Report 87

Core Series

Gartmore Bond Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)

				��
		One			Five		Ten
		year			years		years


Class A¹	without sales charge²		5.37%			7.03%		7.51%
	with sales charge³		0.39%			6.00%		6.99%

Class B⁴	without sales charge²		4.66%			6.37%		7.09%
	with sales charge⁵		-0.34%			6.05%		7.09%

Class C⁶	without sales charge²		4.63%			6.51%		7.30%
	with sales charge⁷		3.63%			6.51%		7.30%

Class D⁸	without sales charge²		5.75%			7.26%		7.68%
	with sales charge⁹		0.95%			6.28%		7.19%

Class R ^1,10			5.06%			7.11%		7.61%

Class X¹	without sales charge²		4.82%			6.41%		7.11%
	with sales charge⁵		-0.18%			6.09%		7.11%

Class Y¹	without sales charge²		4.81%			6.55%		7.32%
	with sales charge⁷		3.81%			6.55%		7.32%

Institutional Class^1,10			5.66%			7.25%		7.67%

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 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 X shares (5/11/98), Class Y shares (3/1/01), Class R shares (10/1/03), and Institutional Class shares (6/29/04). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A, Class R, Class X, Class Y and Institutional Class 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 each of these classes of shares would have been lower.

²	These returns do not reflect the effects of sales charges (SC).

³	A 4.75% front-end sales charge was deducted.

⁴	These returns through May 11, 1998 include performance of the Fund’s predecessor fund, and for the period from May 11, 1998 to the creation of the Fund’s Class B shares on September 4, 2003, include the performance of the Fund’s Class X shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class B 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 the Class B shares would have been lower.

⁵	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.

⁶	These returns through May 11, 1998 include performance of the Fund’s predecessor fund, for the period from May 11, 1998 to March 1, 2001 include the performance of the Fund’s Class D shares and for the period from March 1, 2001 to the creation of the Fund’s Class C shares on September 4, 2003, include the performance of the Fund’s Class Y shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C 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 C shares would have been lower.

⁷	A CDSC of 1.00% was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase.

⁸	These returns through May 11, 1998 include the performance of the fund’s predecessor fund.

⁹	A 4.50% front-end sales charge was deducted.

¹⁰	Not subject to any sales charges.

Performance of a $10,000 Investment

LOGO


	Class D (A 4.50% front-end
	sales charge was deducted.)		LBG/CBI		CPI

Oct 31, 94		9549		10000		10000
Oct 31, 95		11497		11615.8		10280.9
Oct 31, 96		12078		12242.3		10588.6
Oct 31, 97		13083		13320.5		10809.4
Oct 31, 98		14275		14688.9		10969.9
Oct 31, 99		14098		14591.5		11250.8
Oct 31, 00		14516		15629.2		11638.8
Oct 31, 01		16872		18023.9		11886.3
Oct 31, 02		17560		19010.7		12127.1
Oct 31, 03		18931		20185		12374.6
Oct 31, 04		20019		21312.8		12719.1

Comparative performance of $10,000 invested in Class D shares of the Gartmore Bond Fund, the Lehman Brothers Government/ Credit Bond Index (LBG/ CBI)(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 LBG/CBI— an unmanaged index of government and corporate bonds— gives a broad look at how the prices of U.S. government and corporate bonds have performed.

(b)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

88 Annual Report 2004

Gartmore 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 $1,000.00 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 $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 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

Schedule of Shareholder Expenses

Expense Analysis of a $1,000.00 Investment

(October 31, 2004)


			Beginning		Ending
			Account Value		Account Value		Expenses Paid			Annualized
Bond Fund			5/1/04		10/31/04		During Period*			Expense Ratio


Class A	Actual		$	1,000	$	1,038	$	5.38			1.05%
	Hypothetical	¹	$	1,000	$	1,020	$	5.34			1.05%

Class B	Actual		$	1,000	$	1,034	$	8.85			1.73%
	Hypothetical	¹	$	1,000	$	1,016	$	8.81			1.73%

Class C	Actual		$	1,000	$	1,034	$	8.79			1.72%
	Hypothetical	¹	$	1,000	$	1,016	$	8.76			1.72%

Class D	Actual		$	1,000	$	1,040	$	4.00			0.78%
	Hypothetical	¹	$	1,000	$	1,021	$	3.97			0.78%

Class R	Actual		$	1,000	$	1,037	$	6.61			1.29%
	Hypothetical	¹	$	1,000	$	1,019	$	6.57			1.29%

Class X	Actual		$	1,000	$	1,035	$	8.08			1.58%
	Hypothetical	¹	$	1,000	$	1,017	$	8.04			1.58%

Class Y	Actual		$	1,000	$	1,035	$	8.08			1.58%
	Hypothetical	¹	$	1,000	$	1,017	$	8.04			1.58%

Institutional Class (a)	Actual		$	1,000	$	1,084	$	2.58	(b)		0.73%
	Hypothetical	¹	$	1,000	$	1,013	$	2.49	(b)		0.73%


(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 89

Gartmore Bond Fund

Core Series


	Portfolio Summary
	(October 31, 2004)


Asset Allocation


Corporate Bonds			48.4%
U.S. Government Sponsored and Agency Obligations			22.3%
Commercial Paper			14.6%
Commercial Mortgage Backed Securities			7.0%
Asset Backed Securities			4.1%
Taxable Municipal Bonds			1.3%
Principal Only Bond			0.9%
Other Investments*			9.7%
Liabilities in excess of Other Assets**			-8.3%

			100.0%


*	Includes value of collateral received from securities lending.

**	Includes value of collateral owed from securities lending.


Top Industries


U.S. Treasury Bonds			9.6%
Federal National Mortgage Association			9.0%
Financial/Miscellaneous			8.2%
Commercial Services			7.0%
Federal Home Loan Mortgage Corporation			3.4%
Utilities			3.3%
Medical Equipment & Supplies			3.3%
Natural Gas			3.3%
Paper & Forest Products			2.7%
Motor Vehicle Parts & Accessories			2.5%
Other Industries			47.7%

			100.0%


Top Holdings


U.S. Treasury Bonds, 5.50%, 08/15/28			7.0%
Federal Home Loan Mortgage Corporation, 3.50%, 07/01/18			3.4%
Allstate Corp.			3.2%
Household Finance Corp.			3.2%
KBC Financial Products International, Ltd.			3.2%
FCAR Owner Trust I			3.1%
Federal National Mortgage Association, 7.30%, 05/25/10			2.7%
Sysco Corp.			2.0%
Willamette Industries, Inc.			1.8%
Merrill Lynch Mortgage Investors, Inc.			1.8%
Other Holdings			68.6%

			100.0%

90 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Bond Fund



Asset Backed Securities (4.1%)

	Shares or
	Principal Amount		Value

Chase Funding Mortgage Loan, 6.24%, 01/25/13	$	1,500,000	$	1,574,102
Residential Asset Mortgage Products, Inc., 2002-RSI-AI5, 5.91%, 01/25/32		1,566,000		1,595,571
Salomon Smith Barney Recreational Vehicle Trust, 6.30%, 04/15/16		1,000,000		1,048,401
Structured Asset Securities Corp., Series 2004-6XS, Class A6, 4.63%, 03/25/34		1,000,000		993,393


Total Asset Backed Securities				5,211,467


Commercial Mortgage Backed Securities (7.0%)
Commercial Services (7.0%)
Commercial Mortgage, Series 2001-J1A, Class B, 6.61%, 02/16/34 (b)		1,000,000		1,122,901
Heller Financial Commercial Mortgage Asset, 6.85%, 05/15/31		2,000,000		2,225,159
JP Morgan Chase Commercial Mortgage Securities, 6.26%, 03/15/33		2,000,000		2,224,690
Merrill Lynch Mortgage Investors, Inc., 7.56%, 09/15/09		2,000,000		2,248,839
Nomura Asset Securities Corp., 6.69%, 03/17/28		1,000,000		1,146,836


Total Commercial Mortgage Backed Securities				8,968,425


Corporate Bonds (48.4%)
Air Freight/Couriers (0.9%)
Federal Express Corp., 7.63%, 01/01/15		1,000,000		1,105,160



Airlines (1.7%)
America West Airlines, Series A, 6.85%, 07/02/09		407,395		409,693
United Air Lines, Inc., 6.60%, 09/01/13		2,000,000		1,726,999


				2,136,692



Auto-Cars/Light Trucks (0.9%)
Daimlerchrysler, Inc., 7.30%, 01/15/12		1,000,000		1,145,453



Banks (1.6%)
Mercantile Safe Deposit & Trust, 5.70%, 11/15/11		1,000,000		1,084,150
Rabobank Cap III, 5.25%, 10/29/49		1,000,000		1,011,215


				2,095,365



Beverages - Non-Alcoholic (1.0%)
Coca-Cola Enterprises, 8.50%, 02/01/22		1,000,000		1,329,962



Construction & Building Materials (1.3%)
Caterpillar, Inc., 9.38%, 08/15/11		500,000		651,210
Masco Corp., 6.75%, 03/15/06		1,000,000		1,054,773


				1,705,983



Containers (0.8%)
Bemis Co., Inc., 6.70%, 07/01/05		1,000,000		1,025,707



Electronics (0.8%)
Texas Instruments, Inc., 6.13%, 02/01/06		1,000,000		1,039,442



Financial/Miscellaneous (8.2%)
Block Financial Corp., 8.50%, 04/15/07		1,000,000		1,119,053
Countrywide Financial, 3.50%, 12/19/05		1,000,000		1,007,017
Deere & Co., 5.88%, 04/06/06		1,000,000		1,042,930
Ford Motor Credit Co., 7.38%, 02/01/11		1,000,000		1,084,795
General Motors Acceptance Corp., 6.88%, 09/15/11		1,000,000		1,040,985
Household Finance Co., 6.75%, 05/15/11		1,000,000		1,131,145
International Lease Finance Corp., 5.75%, 10/15/06		1,000,000		1,054,423
Lehman Brothers Holdings, Inc., 11.63%, 05/15/05		1,000,000		1,046,039
Regions Financial Corp., 7.00%, 03/01/11		1,600,000		1,848,066


				10,374,453

2004 Annual Report 91


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Bond Fund (Continued)

Core Series



Corporate Bonds (continued)

	Shares or
	Principal Amount		Value

Food & Related (2.2%)
McCormick & Co., Inc., 6.40%, 02/01/06	$	1,000,000	$	1,047,826
Whitman Corp., 7.29%, 09/15/26		1,500,000		1,782,134


				2,829,960



Healthcare (1.6%)
Cardinal Health, Inc., 6.75%, 02/15/11		1,000,000		1,091,948
McKesson HBOC, Inc., 6.30%, 03/01/05		1,000,000		1,009,241


				2,101,189



Home Furnishings (0.8%)
Leggett & Platt, Inc., 7.65%, 02/15/05		1,000,000		1,012,862



Hotels & Casinos (1.8%)
Harrah’s Operating Co., Inc., 7.88%, 12/15/05		1,200,000		1,260,000
MGM Mirage, Inc., 6.95%, 02/01/05		1,000,000		1,010,000


				2,270,000



Hotels/Motels (0.9%)
Marriott International, Inc., 7.00%, 01/15/08		1,000,000		1,092,965



Insurance (1.0%)
AMBAC, Inc., 9.38%, 08/01/11		1,000,000		1,283,829



Machinery & Capital Goods (1.8%)
Clark Equipment Co., 8.00%, 05/01/23		1,000,000		1,226,753
Precision Castparts Corp., 8.75%, 03/15/05		1,000,000		1,021,158


				2,247,911



Medical Equipment & Supplies (3.3%)
Bard (C.R.) Inc., 6.70%, 12/01/26		1,000,000		1,104,101
Becton, Dickinson & Co., 8.70%, 01/15/25		2,000,000		2,100,264
Guidant Corp., 6.15%, 02/15/06		1,000,000		1,039,095


				4,243,460



Motor Vehicle Parts & Accessories (2.5%)
Eaton Corp., 8.88%, 06/15/19		1,500,000		2,035,047
Pennzoil-Quaker State, 10.00%, 11/01/08		1,000,000		1,117,068


				3,152,115



Natural Gas (3.3%)
Columbia Energy Group, 6.80%, 11/28/05		2,000,000		2,081,608
ONEOK, Inc., 7.75%, 08/15/06		1,000,000		1,078,403
PG&E Gas Transmission, 7.10%, 06/01/05		1,000,000		1,023,750


				4,183,761



Nuclear Energy (0.8%)
USEC, Inc., 6.63%, 01/20/06		1,000,000		1,010,000



Office Furniture (0.9%)
Herman Miller, Inc., 7.13%, 03/15/11		1,000,000		1,131,013



Oil & Gas (2.1%)
Kinder Morgan, Inc., 6.50%, 09/01/12		1,500,000		1,661,420
Sempra Energy, 6.95%, 12/01/05		1,000,000		1,042,562


				2,703,982



Paper & Forest Products (2.7%)
Temple-Inland, Inc., 7.88%, 05/01/12		1,000,000		1,193,252
Willamette Industries, Inc., 7.35%, 07/01/26		2,000,000		2,296,150


				3,489,402



Telecommunications (1.2%)
US West Communications, Inc., 6.88%, 09/15/33		1,750,000		1,505,000



Textile Apparel Manufacturers (1.0%)
V.F. Corp., 8.50%, 10/01/10		1,000,000		1,221,487

92 Annual Report 2004



Corporate Bonds (continued)

	Shares or
	Principal Amount		Value

Utilities (3.3%)
Baltimore Gas & Electric, 7.50%, 01/15/07	$	1,200,000	$	1,309,790
Interstate P&L Co., 7.25%, 10/01/06		1,000,000		1,075,543
Pacific Gas & Electric, 6.05%, 03/01/34		750,000		772,446
Southwestern Electric Power Co., 7.00%, 09/01/07		1,000,000		1,092,260


				4,250,039


Total Corporate Bonds				61,687,192


Taxable Municipal Bonds (1.3%)
Louisiana (0.5%)
Tobacco Settlement Financing Corp., 6.36%, 05/15/25		673,257		655,456



South Carolina (0.8%)
Piedmont Municipal Power Agency, 2.65%, 01/01/05		1,000,000		999,350


Total Taxable Municipal Bonds				1,654,806


Principal Only Bond (0.9%)
U.S. Treasury Strips (0.9%)
4.98%, 8/15/20		2,500,000		1,151,625


Total Principal Only Bonds				1,151,625


U.S. Government Sponsored and Agency Obligations (22.3%)
Federal Home Loan Mortgage Corporation (3.4%)
3.50%, 07/01/18, Gold Pool E01443		4,552,372		4,340,300



Federal National Mortgage Association (9.0%)
7.13%, 09/01/07, Pool #323286		1,693,475		1,757,146
7.30%, 05/25/10, Series 00-T5		3,000,000		3,478,071
6.62%, 06/01/16, Pool #383661		1,926,250		2,212,699
5.00%, 04/01/19, Pool #386905		994,446		1,018,034
6.85%, 05/17/20, Series 97-M6		928,506		993,596
5.50%, 05/25/23, Series 03-33		2,000,000		2,061,211


				11,520,757



Sovereign Agency (0.3%)
AID-Israel, 5.42%, 05/15/24		1,000,000		352,392



U.S. Treasury Bonds (9.6%)
8.13%, 08/15/19		1,500,000		2,071,758
5.50%, 08/15/28		8,250,000		8,984,762
5.38%, 02/15/31		1,100,000		1,194,746


				12,251,266


Total U.S. Government Sponsored and Agency Obligations				28,464,715


Commercial Paper (14.6%)
Allstate Corp., 1.85%, 11/01/04		4,000,000		4,000,000
FCAR Owner Trust I, 1.78%, 11/15/04		4,000,000		3,997,231
Household Finance Corp., 1.85%, 11/01/04		4,000,000		4,000,000
KBC Financial Products International, Ltd., 1.85%, 11/01/04		4,000,000		4,000,000
Sysco Corp., 1.85%, 11/01/04		2,594,000		2,594,000


Total Commercial Paper				18,591,231


Short-Term Securities Held as Collateral for Securities Lending (9.7%)
Pool of short-term securities for Gartmore
Mutual Funds — footnote 3
(Securities Lending)		12,429,790		12,429,790


Total Short-Term Securities Held as Collateral for Securities Lending				12,429,790


Total Investments (Cost $131,098,913) (a) — 108.3%				138,159,251
Other liabilities in excess of assets — (8.3%)				(10,619,251)

NET ASSETS — 100.0%			$	127,540,000


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

(b)		Represents non-income producing securities.

See notes to financial statements.

2004 Annual Report 93

Core Series


	Gartmore Government Bond Fund

For the annual period ended Oct. 31, 2004, the Gartmore Government Bond Fund returned 3.68% (Class A at NAV) versus 4.75% for its benchmark, the Merrill Lynch Government Master Index. For broader comparison, the average return for the Fund’s Lipper peer category of Intermediate U.S. Government Funds was 3.36%.

The period was marked by two distinct trends. During the first half of the period, interest rates rose as the Federal Reserve announced its intention to begin raising the federal funds rate. The latter half of the period saw interest rates falling on the five- to 30-year area of the Treasury yield curve—which illustrates the relationship between yields and maturity dates for a set of similar bonds—and rising on the one- to three-year portion, which is known as “bullish flattening,” as market participants realized the distinction between the Federal Reserve’s normalizing rates and aggressively tightening these rates. In addition, the economy began slowing from its earlier fast pace, affecting employment.

During the reporting period, mortgage-backed securities (MBS) were the best-performing sector, followed by U.S. Agency notes and U.S. Treasuries. Given the low interest-rate environment, fixed-income investors searched for yield, and MBS were the main beneficiary as their attractive spread over Treasuries enticed buyers. Agency notes performed well, but spreads widened many times throughout the period and created several opportunities to trade in and out. Treasury inflation-protected securities were the star performer in the Treasury space, and the longer the maturity of the Treasury, the better the performance.

The performance of the Fund versus the Index was hurt because the Fund’s portfolio duration was kept shorter than that of the Index during the period but was longer than that of the Fund’s peer group. Interest rates also were held lower than expected by Asian central banks. In doing so, the banks were attempting to keep the value of their currency low, to enable continued sales to American consumers. The banks would sell their currency, buy U.S. dollars and use the U.S. dollars to buy Treasury and Agency securities. Despite this massive intervention, the U.S. dollar continued to fall in value during the period.

The Fund currently is positioned for interest rates that are somewhat stable to rising. The average maturity of the Fund is shorter than that of the Index. The Fund’s emphasis is on MBS and Agency notes; the additional yield of MBS and Agency notes should help offset a modest rise in interest rates. The Fund also is beginning to build a position in Treasury inflation-protected securities (TIPS) to offset the possibility of the U.S. dollar’s value moving sharply lower.

Portfolio Manager: Gary Hunt


	Class A: NUSAX
	Class B: GGBBX
	Class C: GGBCX
	Class D: NAUGX
	Class R: GGBRX
	Class X: GGXYX
	Class Y: GGVYX
	Institutional Class: GGBIX

94 Annual Report 2004

Gartmore Government Bond Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One		Five		Ten
		Year		Years		Years


Class A¹	without sales charge ²		3.68%		6.91%		6.44%
	with sales charge³		-1.26%		5.88%		6.03%

Class B⁴	without sales charge ²		3.04%		6.30%		6.12%
	with sales charge⁵		-1.85%		5.99%		6.12%

Class C⁶	without sales charge ²		3.03%		6.43%		6.28%
	with sales charge⁷		2.06%		6.43%		6.28%

Class D⁸	without sales charge ²		3.87%		7.17%		6.57%
	with sales charge⁹		-0.80%		6.18%		6.18%

Class R ^1,10			3.41%		7.07%		6.53%

Class X¹	without sales charge ²		3.10%		6.32%		6.13%
	with sales charge⁵		-1.78%		6.00%		6.13%

Class Y¹	without sales charge ²		3.10%		6.45%		6.28%
	with sales charge⁷		2.13%		6.45%		6.28%

Institutional Class^1,10			4.00%		7.20%		6.58%

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 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 X shares (5/11/98), Class Y shares (3/1/01),Class R shares (10/1/03), and Institutional Class shares (6/29/04). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A, Class R, Class X, Class Y and Institutional Class 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 each of these classes of shares would have been lower.

²	These returns do not reflect the effects of sales charges (SC).

³	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.

⁴	These returns through May 11, 1998 include performance of the Fund’s predecessor fund, and for the period from May 11, 1998 to the creation of the Fund’s Class B shares on September 4, 2003, include the performance of the Fund’s Class X shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class B 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 the Class B shares would have been lower.

⁵	A 4.75% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.

⁶	These returns through May 11, 1998 include performance of the Fund’s predecessor fund, for the period from May 11, 1998 to March 1, 2001 include the performance of the Fund’s Class D shares and for the period from March 1, 2001 to the creation of the Fund’s Class C shares on September 4, 2003, include the performance of the Fund’s Class Y shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C 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 C shares would have been lower.

⁷	A CDSC of 1.00% was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase.

⁸	These returns through May 11, 1998 include the performance of the fund’s predecessor fund.

⁹	A 4.50% front-end sales charge was deducted.

¹⁰	Not subject to any sales charges.

Performance of a $10,000 Investment

LOGO


	Class D (A 4.50% front-end
	sales charge was deducted.)		MLGMI		CPI

Oct 31, 94		9554		10000		10000
Oct 31, 95		11128		11541.1		10280.9
Oct 31, 96		11716		12123.6		10588.6
Oct 31, 97		12754		13175.2		10809.4
Oct 31, 98		13906		14668.6		10969.9
Oct 31, 99		13777		14492.9		11250.8
Oct 31, 00		14842		15652.1		11638.8
Oct 31, 01		17131		17991.3		11886.3
Oct 31, 02		18264		19129.1		12127.1
Oct 31, 03		18751		19681.3		12374.6
Oct 31, 04		19477		20616.4		12719.1

Comparative performance of $10,000 invested in Class D shares of the Gartmore Government Bond Fund, the Merrill Lynch Government Master Index (MLGMI)(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 MLGMI gives a broad look at how U.S. government bonds 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 95

Gartmore Government Bond Fund

Core Series


	Shareholder Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


			Beginning		Ending
			Accrual Value		Accrual Value		Expense Paid			Annualized
Government Bond Fund			5/1/04		10/31/04		During Period*			Expense Ratio


Class A	Actual		$	1,000	$	1,034	$	5.52			1.08%
	Hypothetical	¹	$	1,000	$	1,020	$	5.50			1.08%

Class B	Actual		$	1,000	$	1,030	$	8.63			1.69%
	Hypothetical	¹	$	1,000	$	1,017	$	8.60			1.69%

Class C	Actual		$	1,000	$	1,030	$	8.63			1.69%
	Hypothetical	¹	$	1,000	$	1,017	$	8.60			1.69%

Class D	Actual		$	1,000	$	1,034	$	4.04			0.79%
	Hypothetical	¹	$	1,000	$	1,021	$	4.02			0.79%

Class R	Actual		$	1,000	$	1,033	$	6.54			1.28%
	Hypothetical	¹	$	1,000	$	1,019	$	6.52			1.28%

Class X	Actual		$	1,000	$	1,031	$	7.86			1.54%
	Hypothetical	¹	$	1,000	$	1,017	$	7.84			1.54%

Class Y	Actual		$	1,000	$	1,031	$	7.86			1.54%
	Hypothetical	¹	$	1,000	$	1,017	$	7.84			1.54%

Institutional Class (a)	Actual		$	1,000	$	1,040	$	2.38	(b)		0.69%
	Hypothetical	¹	$	1,000	$	1,013	$	2.36	(b)		0.69%


(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.

96 Annual Report 2004

Gartmore Government Bond Fund

Portfolio Summary

(October 31, 2004)


Asset Allocation


U.S. Government Sponsored and Agency
	Obligations	95.7%
Repurchase Agreements		2.1%
Other Assets in excess of Liabilities		2.2%

		100.0%


Top Industries


Federal National Mortgage Association		54.7%
Federal Home Loan Mortgage
	Corporation	22.0%
U.S. Treasury Bonds		7.8%
Federal Farm Credit Bank		4.4%
U.S. Treasury Inflation Protected Bonds		3.4%
Sovereign Agency		1.8%
Federal Home Loan Bank		1.5%
Other Industries		4.4%

		100.0%


Top Holdings


Federal National Mortgage Association, 2.75%, 08/17/07		5.5%
Federal National Mortgage Association, 3.00%, 02/23/07		5.5%
Federal Home Loan Mortgage Corporation, 2.76%, 05/19/06, Series MTN		5.5%
Federal National Mortgage Association, 2.80%, 11/17/06		5.5%
Federal Home Loan Mortgage Corporation, 2.60%, 05/10/06, Series MTN		5.5%
Federal National Mortgage Association, 4.50%, 08/25/31, REMIC, Series 04-29-HB		4.5%
Federal National Mortgage Association, 3.50%, 11/25/32, REMIC, Series 03-66-AP		4.4%
U.S. Treasury Bonds, 9.00%, 11/15/18		4.0%
Federal National Mortgage Association, 3.55%, 01/12/07		3.9%
U.S. Treasury Bonds, 6.00%, 02/15/26		3.8%
Other Holdings		51.9%

		100.0%

2004 Annual Report 97

Core Series


	Statement of Investments
	October 31, 2004

Gartmore Government Bond Fund



U.S. Government Sponsored and Agency Obligations (95.7%)

	Principal
	Amount		Value

Federal Farm Credit Bank (4.4%)
6.90%, 09/08/15	$	3,000,000	$	3,567,459
7.13%, 11/16/15		4,000,000		4,568,272


				8,135,731



Federal Home Loan Bank (1.5%)
6.02%, 01/09/08, Series AA08		1,000,000		1,084,699
5.99%, 04/15/13, Series BD13		1,500,000		1,673,684


				2,758,383



Federal Home Loan Mortgage Corporation (22.0%)
2.60%, 05/10/06, Series MTN		10,000,000		9,992,160
2.76%, 05/19/06, Series MTN		10,000,000		10,002,041
2.15%, 06/02/06, Series MTN		1,000,000		990,086
5.50%, 04/01/07, Gold Pool #M90718		557,630		573,267
7.25%, 06/15/07, REMIC, Series 1313-G		39,774		39,753
5.38%, 06/22/11, Series MTN		2,000,000		2,006,942
5.50%, 11/15/20, REMIC, Series 2541-VL		1,500,000		1,544,798
6.00%, 02/15/21, Series 2503-VD		4,000,000		4,269,330
3.50%, 12/15/21, REMIC, Series 1629-HA		179,731		179,798
5.50%, 01/15/22, REMIC, Series 2666-OC		1,500,000		1,578,152
6.50%, 03/15/24, REMIC, Series 1684-I		2,000,000		2,137,661
6.00%, 01/15/28, Series 2114-PR		1,393,500		1,436,457
6.50%, 07/15/30, REMIC, Series 2388-BE		389,172		391,428
6.50%, 03/15/31, REMIC, Series 2296-H		649,535		673,760
6.00%, 09/15/31, REMIC, Series 2419-UA		4,380,702		4,494,684


				40,310,317



Federal National Mortgage Association (54.7%)
6.31%, 01/01/06, Pool #73341		830,317		851,188
2.80%, 11/17/06		10,000,000		9,998,900
3.55%, 01/12/07		7,000,000		7,054,873
3.00%, 02/23/07		10,000,000		10,006,030
2.75%, 08/17/07		10,000,000		10,022,341
6.10%, 07/01/08, Pool #380488		915,955		982,318
6.00%, 11/25/08, REMIC, Series 94-48-E		975,917		995,957
4.50%, 04/01/10, Pool #M80812		1,931,526		1,960,620
7.42%, 11/01/11, Pool #73731		6,171,630		6,648,488
6.50%, 04/25/13, REMIC, Series 99-19-TD		1,437,573		1,451,927
6.30%, 05/01/13, Pool #380311		1,838,846		1,980,654
6.00%, 03/25/14, Series 99-8-QD		3,457,085		3,600,142
6.30%, 04/01/14, Pool #381570		1,030,664		1,147,994
7.90%, 08/01/15, Pool #381190		1,601,543		1,935,632
7.11%, 10/01/15, Pool #383142		2,805,599		3,155,209
5.50%, 04/25/16, REMIC, Series 02-55-QD		3,000,000		3,112,363
6.68%, 05/01/16, Pool #383452		1,988,608		2,204,156
9.25%, 10/25/18, REMIC, Series 88-25-B		27,427		30,096
8.10%, 08/12/19		1,000,000		1,319,925
8.50%, 01/25/20, REMIC, Series 90-7-B		86,663		94,904
6.85%, 05/17/20, Series 97-M6-C		1,434,542		1,535,106
7.50%, 02/25/23, REMIC, Series 93-16-Z		340,454		361,334
6.00%, 12/25/23, REMIC, Series 93-226-PK		1,000,000		1,062,406
5.03%, 06/01/29, Pool #386937		4,905,993		4,884,057
4.50%, 08/25/31, REMIC, Series 04-29-HB		8,561,000		8,151,600
3.50%, 11/25/32, REMIC, Series 03-66-AP		8,201,374		8,053,861
6.27%, 02/25/35, REMIC, Series 98-M4-D		2,500,000		2,740,415
6.30%, 10/17/38, REMIC, Series 98-73-MZ		4,328,197		4,624,295


				99,966,791



Sovereign Agency (1.8%)
AID — Israel, 6.80%, 02/15/12, Series 3-D		1,000,000		1,127,690
AID — Panama, 7.15%, 04/01/27		2,000,000		2,203,140


				3,330,830



U.S. Treasury Bonds (7.8%)
9.00%, 11/15/18		5,000,000		7,336,915
6.00%, 02/15/26		6,000,000		6,925,080


				14,261,995



U.S. Treasury Inflation Protected Bonds (3.4%)
2.38%, 01/15/25		6,031,920		6,309,955


Total U.S. Government Sponsored and Agency Obligations				175,074,002


Repurchase Agreements (2.1%)
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $1,603,101 (Fully collateralized by U.S. Agency Securities and U.S. Treasury Notes)		1,602,867		1,602,867
Nomura Securities, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $2,239,919 (Fully collateralized by AA Rated Corporate Bonds and U.S. Agency Securities)		2,239,593		2,239,593


Total Repurchase Agreements				3,842,460


Total Investments (Cost $174,769,283) (a) — 97.8%				178,916,462
Other assets in excess of liabilities — 2.2%				4,023,517

NET ASSETS — 100.0%			$	182,939,979


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

REMIC Real Estate Mortgage Investment Conduit

See notes to financial statements.

98 Annual Report 2004

Core Series


	Gartmore Tax-Free Income Fund

For the annual period ended Oct. 31, 2004, the Gartmore Tax-Free Income Fund returned 5.97% (Class A at NAV) versus 6.02% for its benchmark, the Lehman Brothers Municipal Bond Index. For broader comparison, the average return for the Fund’s Lipper peer category of General Municipal Debt Funds was 5.23%.

During the period, municipal bond issuance slowed, with just $354.5 billion sold (down 8.77% from the same period in 2003). The majority of issuers needing to market bonds in this lower-rate environment appear already to have done so; they brought a record $742 billion of tax-exempt bonds to market in 2002–2003. In addition, higher tax receipts and better expense management have lessened the need to issue bonds. Demand, however, has remained steady. With retail investors favoring the shorter area of the municipal yield curve (the relationship between yields and maturity dates for a set of similar bonds) and tax-exempt mutual funds still sidelined, insurance companies remain strong bond investors, despite the hits they took from one of the worst hurricane seasons on record.

As for interest-rate moves, the Federal Reserve continued its gradual approach to raising the federal funds rate; it was increased, in three moves, by a total of 75 basis points to 1.75%. The Federal Open Market Committee believes that, even after this action, monetary policy remains accommodative. Coupled with robust underlying productivity growth, the policy is sustaining economic activity. The Fed observed that despite the rise in energy prices, inflation and perceptions about its future direction have eased in recent months. As a result, bond values have been quite resilient.

Analyzing the benchmark: long-term bond maturing in 22 or more years provided the highest return with 8.20%; intermediate bonds maturing in 10 years returned 6.35%; while short-dated bonds maturing in one year performed the worst—producing a return of 1.24%. The average bond-rating quality of the Fund is AA2/ AA+, as determined by Moody’s/ Standard and Poor’s. The Fund has an average duration of 5.25 years, which is slightly shorter than the 5.31 duration of the benchmark Index. The Fund’s largest state bond holdings were Texas, Illinois and Alabama.

The market is concerned about the rise in the level of interest rates and the resultant market volatility. Our strategy in response to the prevailing conditions is to remain diversified on the yield curve. We plan to purchase municipal bonds that become undervalued due to concerns about rising interest rates, to emphasize intermediate bonds bearing premium coupons (5% or higher) and to maintain quality.

Portfolio Manager: Alpha Benson


	Class A: NTFAX
	Class B: GTIBX
	Class C: GTICX
	Class D: NATFX
	Class X: GXTFX
	Class Y: GTFYX

2004 Annual Report 99

Core Series

Gartmore Tax-Free Income Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One		Five		Ten
		year		years		years


Class A¹	without sales charge²		5.97%		6.43%		6.26%
	with sales charge³		0.96%		5.39%		5.75%

Class B⁴	without sales charge²		5.28%		5.78%		5.84%
	with sales charge⁵		0.28%		5.46%		5.84%

Class C⁶	without sales charge²		5.12%		5.85%		6.00%
	with sales charge⁷		4.12%		5.85%		6.00%

Class D⁸	without sales charge²		6.23%		6.72%		6.44%
	with sales charge⁹		1.49%		5.74%		5.95%

Class X¹	without sales charge²		5.34%		5.82%		5.86%
	with sales charge⁵		0.34%		5.50%		5.86%

Class Y¹	without sales charge²		5.35%		5.90%		6.03%
	with sales charge⁷		4.35%		5.90%		6.03%

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 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 X shares (5/11/98) and Class Y shares (3/1/01). Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class A, Class X and Class Y 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 each of these classes of shares would have been lower.

²	These returns do not reflect the effects of sales charges (SC).

³	A 4.75% front-end sales charge was deducted.

⁴	These returns through May 11, 1998 include performance of the Fund’s predecessor fund, and for the period from May 11, 1998 to the creation of the Fund’s Class B shares on September 4, 2003, include the performance of the Fund’s Class X shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class B 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 the Class B shares would have been lower.

⁵	A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years.

⁶	These returns through May 11, 1998 include performance of the Fund’s predecessor fund, for the period from May 11, 1998 to March 1, 2001 include the performance of the Fund’s Class D shares and for the period from March 1, 2001 to the creation of the Fund’s Class C shares on September 4, 2003, include the performance of the Fund’s Class Y shares. Excluding the effect of any fee waivers or reimbursements, such prior performance is similar to what Class C 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 C shares would have been lower.

⁷	A CDSC of 1.00% was deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase.

⁸	These returns through May 11, 1998 include the performance of the fund’s predecessor fund.

⁹	A 4.50% front-end sales charge was deducted.

Performance of a $10,000 Investment

LOGO


	Class D (A 4.50% front-end
	sales charge was deducted.)		LBMBI		CPI

Oct 31, 94		9553		10000		10000
Oct 31, 95		10953		11484.7		10280.9
Oct 31, 96		11534		12140.3		10588.6
Oct 31, 97		12425		13172.2		10809.4
Oct 31, 98		13306		14229.1		10969.9
Oct 31, 99		12880		13976.5		11250.8
Oct 31, 00		13933		15165.5		11638.8
Oct 31, 01		15324		16752.5		11886.3
Oct 31, 02		16081		17735.3		12127.1
Oct 31, 03		16782		18642.4		12374.6
Oct 31, 04		17828		19764.4		12719.1

Comparative performance of $10,000 invested in Class D shares of the Gartmore Tax-Free Income Fund, the Lehman Brothers Municipal Bond Index (LBMBI)(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 LBMBI—an unmanaged index of municipal bonds— gives a broad look at how the bond prices on municipal bonds have performed.

(b)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

100 Annual Report 2004

Gartmore Tax-Free Income Fund

Shareholder Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


			Beginning		Ending
			Account Value		Account Value		Expenses Paid		Annualized
Tax-Free Income Fund			5/1/04		10/31/04		During Period*		Expense Ratio


Class A	Actual		$	1,000	$	1,045	$	4.78		0.93%
	Hypothetical	¹	$	1,000	$	1,020	$	4.72		0.93%

Class B	Actual		$	1,000	$	1,042	$	8.62		1.68%
	Hypothetical	¹	$	1,000	$	1,017	$	8.53		1.68%

Class C	Actual		$	1,000	$	1,041	$	8.62		1.68%
	Hypothetical	¹	$	1,000	$	1,017	$	8.53		1.68%

Class D	Actual		$	1,000	$	1,047	$	3.50		0.68%
	Hypothetical	¹	$	1,000	$	1,022	$	3.45		0.68%

Class X	Actual		$	1,000	$	1,042	$	7.85		1.53%
	Hypothetical	¹	$	1,000	$	1,017	$	7.77		1.53%

Class Y	Actual		$	1,000	$	1,042	$	7.85		1.53%
	Hypothetical	¹	$	1,000	$	1,017	$	7.79		1.53%


*	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 101

Gartmore Tax-Free Income Fund

Core Series


	Portfolio Summary
	(October 31, 2004)


Asset Allocation


Municipal Bond			98.8%
Other Assets in excess of Liabilities			1.2%

			100.0%


Top States


Texas			17.3%
Illinois			12.3%
Alabama			7.6%
Ohio			6.0%
Washington			5.6%
South Carolina			4.9%
Massachusetts			4.7%
Indiana			4.5%
Virginia			4.2%
Michigan			4.1%
Other States			28.8%

			100.0%


Top Holdings


Indiana State Toll Road Commission East-West Toll Road Revenue Bonds, Series 1980			3.8%
Harris County, Texas Health Facilities Development Corporation Revenue School Health Care Systems, Series B			3.2%
Metropolitan Pier & Exposition Authority Illinois Dedicated State Tax Revenue Bonds (Mccormick Place Expansion Project)			2.5%
Illinois State General Obligation Unlimited Revenue Bonds			2.5%
Jefferson County, Alabama Sewer Capital Improvement Revenue Warrants, Series A			2.3%
Shelby County, Tennessee Educational & Housing Facilities Board Revenue Bonds (St. Judes Children’s Research)			2.3%
Virginia College Building Authority Educational Facilities Revenue Bonds			2.2%
Michigan State General Obligation Unlimited Tax Bonds (Environmental Protection Program), Series 1992			2.1%
Alabama 21st Century Authority Tobacco Settlement Revenue Bonds			2.0%
Denver, Colorado City & County Airport Revenue Bonds, Series B			1.9%
Other Bonds			75.2%

			100.0%

102 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Tax Free Income Fund



Municipal Bonds (98.8%)

	Principal
	Amount		Value

Alabama (7.6%)
Alabama 21st Century Authority Tobacco Settlement Revenue Bonds, 5.75%, 12/01/2015	$	1,500,000	$	1,571,340
Alabama 21st Century Authority Tobacco Settlement Revenue Bonds, 5.50%, 12/01/2021		4,000,000		3,849,040
Alabama Housing Finance Authority Single-Family Revenue Bonds, (Collateralized Home Mortgage Revenue Bond Program), Series 1996-D, 6.00%, 10/01/2016		1,045,000		1,081,847
Auburn University Alabama General Fee Revenue Bonds, 5.50%, 06/01/2018		1,685,000		1,884,571
Birmingham, Alabama Water & Sewer Revenue Warrants, Series 1998-A, 4.75%, 01/01/2029		1,750,000		1,725,413
Jefferson County, Alabama Sewer Capital Improvement Revenue Warrants, Series A, 5.13%, 02/01/2029		4,000,000		4,447,640


				14,559,851



Arizona (1.0%)
Mesa, Arizona Industrial Development Authority Revenue Bonds, (Discovery Health Systems), Series A, 5.63%, 01/01/2029		1,800,000		1,940,508



Colorado (1.9%)
Denver, Colorado City & County Airport Revenue Bonds, Series B, 5.50%, 11/15/2025		3,500,000		3,721,410



District of Columbia (1.4%)
District of Columbia General Obligation Unlimited Bonds, Series A, 5.50%, 06/01/2029		1,775,000		1,859,668
District of Columbia Prerefunded General Obligation Unlimited, Series A, 5.50%, 06/01/2029		725,000		821,947


				2,681,615



Florida (1.4%)
Florida State Board of Education Capital Outlay (Public Education), Series D, 5.75%, 06/01/2022		1,050,000		1,181,765
Jacksonville, Florida Electric Authority Revenue Bonds, (St. John’s River), Series 9, 5.25%, 10/01/2021		1,520,000		1,528,192


				2,709,957



Georgia (3.7%)
Atlanta, Georgia Airport General Obligation Refunding Revenue Bonds, Series A, 5.50%, 01/01/2026		1,000,000		1,139,600
Georgia Local Government Certificates of Participation Grantor Trust, Series 1998-A, 4.75%, 06/01/2028		1,000,000		1,027,450
Georgia Municipal Electric Power Authority Revenue Bonds, Prerefunded Series V, 6.60%, 01/01/2018		465,000		596,595
Georgia Municipal Electric Power Authority Revenue Bonds, Unrefunded Series V, 6.60%, 01/01/2018		2,285,000		2,832,120
Georgia Private College & Universities Authority, Refunding Revenue Bonds, (Mercer University Project), Series A, 5.25%, 10/01/2025		1,500,000		1,514,505


				7,110,270



Illinois (12.3%)
Chicago Park District, Illinois General Obligation Unlimited Tax Park Bonds, Series 1996, 5.60%, 01/01/2021		3,050,000		3,310,226
Chicago, Illinois Project General Obligation Limited, Series A, 5.38%, 01/01/2024		2,930,000		3,128,478
Illinois Development Finance Authority Hospital Revenue Bonds, (Adventist Health Systems/ Sunbelt Obligation), 5.50%, 11/15/2020		1,750,000		1,842,225
Illinois Development Finance Authority Hospital Revenue Bonds, (Adventist Health Systems/ Sunbelt Obligation), 5.65%, 11/15/2024		3,000,000		3,136,740
Illinois State Building, Illinois Sales Tax Revenue Bonds, Series V, 6.38%, 06/15/2017		2,500,000		2,619,700
Illinois State General Obligation Unlimited Revenue Bonds, 5.25%, 08/01/2013 - 05/01/2023		4,425,000		4,804,499
Metropolitan Pier & Exposition Authority Illinois Dedicated State Tax Revenue Bonds (Mccormick Place Expansion Project), 5.50%, 12/15/2024		4,500,000		4,886,190


				23,728,058



Indiana (4.5%)
Ball State University Student Fee Revenue Bonds, Series J, 6.20%, 07/01/2020		1,000,000		1,183,050
Indiana State Toll Road Commission East-West Toll Road Revenue Bonds, Series 1980, 9.00%, 01/01/2015		5,335,000		7,392,069


				8,575,119



Kansas (0.9%)
Wichita, Kansas Hospital Revenue Refunding Bonds (Facilities Improvements Series 11), 6.75%, 11/15/2019		1,500,000		1,699,695



Louisiana (0.8%)
Tobacco Settlement Financing Corp. (Louisiana Revenue Asset Backed), Series 2001B, 5.88%, 05/15/2039		1,750,000		1,533,350

2004 Annual Report 103


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Tax Free Income Fund (Continued)

Core Series



Municipal Bonds (continued)

	Principal
	Amount		Value

Massachusetts (4.7%)
Massachusetts Bay Transportation Authority Revenue Bonds, (General Transportation System), Series A, 5.38%, 03/01/2019	$	2,000,000	$	2,101,460
Massachusetts State Consumer Loan General Obligation Limited, Series C, 5.50%, 11/01/2015		1,500,000		1,744,620
Massachusetts State Consumer Loan General Obligation Limited, Series D, 5.50%, 08/01/2019		1,000,000		1,162,120
Massachusetts State General Obligation Unlimited Bonds, Series D, 5.50%, 10/01/2018		2,000,000		2,324,440
Massachusetts State Prerefunded Consumer Loan General Obligation Limited, Series B, 5.25%, 03/01/2021		95,000		107,362
Massachusetts State Unrefunded Consumer Loan General Obligation Limited, Series B, 5.25%, 03/01/2021		1,405,000		1,587,833


				9,027,835



Michigan (4.1%)
Michigan State General Obligation Unlimited Tax Bonds (Environmental Protection Program), Series 1992, 6.25%, 11/01/2012		3,500,000		4,099,060
Michigan State Hospital Finance Authority Refunding Revenue Bonds, (Henry Ford Health), 6.00%, 11/15/2024		1,500,000		1,568,325
Michigan State Hospital Finance Authority Revenue Bonds, (Ascension Health Credit), Series A, 5.75%, 11/15/2018		2,000,000		2,304,780


				7,972,165



Minnesota (0.9%)
St. Louis Park, Minnesota Independent School District Number 283 General Obligation Unlimited Tax Bonds, 5.75%, 02/01/2018		1,500,000		1,670,160



Missouri (1.0%)
Jackson County, Missouri Special Obligation Revenue Bonds, Series A, 5.50%, 12/01/2012		1,415,000		1,645,433
Missouri State Environmental Improvement & Energy Resource Authority, State Revolving Fund-Multiple, Series A, Refunded Portion, 6.55%, 07/01/2014		365,000		366,489


				2,011,922



Nevada (0.7%)
University of Nevada Community College Revenue Bonds, 5.38%, 07/01/2020		1,200,000		1,293,888



New Jersey (2.5%)
New Jersey State Transportation Trust Fund Authority, Transportation Systems Revenue Bonds, Series A, 5.75%, 06/15/2017		1,000,000		1,194,940
New Jersey State Transportation Trust Fund Authority, Transportation Systems Revenue Bonds, Series B, 6.00%, 12/15/2015		2,000,000		2,376,220
New Jersey State Turnpike Authority Revenue Bonds, Prerefunded Series 1991-C, 6.50%, 01/01/2016		790,000		972,948
New Jersey State Turnpike Authority Revenue Bonds, Unrefunded Series 1991-C, 6.50%, 01/01/2016		210,000		255,436


				4,799,544



New Mexico (0.8%)
Bernalillo County, New Mexico Gross Receipts Tax Revenue Bonds, 5.25%, 10/01/2026		1,500,000		1,566,630



New York (1.2%)
New York State Local Government Assistance Corporation Revenue Refunding Bonds, Series 1993-E, 6.00%, 04/01/2014		1,000,000		1,181,850
New York, New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, 5.75%, 11/15/2019 - 11/15/2019		1,000,000		1,154,253


				2,336,103



North Carolina (2.7%)
North Carolina Housing Finance Agency, Single-Family Revenue Bonds, Series A, 6.25%, 03/01/2017		885,000		905,771
North Carolina Medical Care Commission Hospital Revenue Bonds (Firsthealth of the Carolinas), 4.75%, 10/01/2026		2,000,000		2,009,700
North Carolina Medical Care Commission Hospital Revenue Bonds, (Gaston Health Care), 5.00%, 02/15/2029		2,300,000		2,316,077


				5,231,548

104 Annual Report 2004



Municipal Bonds (continued)

	Principal
	Amount		Value

Ohio (6.0%)
Allen County, Ohio Special Obligation Revenue Bonds, 5.25%, 12/01/2015	$	3,180,000	$	3,569,327
Cleveland, Ohio Waterworks Revenue Bonds, Series K, 5.25%, 01/01/2020		1,000,000		1,134,330
Franklin County, Ohio Hospital Refunding & Improvement Revenue Bonds, (The Children’s Hospital Project), Series 1996-A, 5.75%, 11/01/2020		1,100,000		1,146,068
Hamilton, Ohio City School District General Obligation Bonds, Series A, 5.50%, 12/01/2019		1,000,000		1,105,810
Montgomery County, Ohio Hospital Revenue Bonds (Kettering Medical Center), 6.75%, 04/01/2018		2,500,000		2,763,600
Ohio State Building, Ohio Sales Tax Revenue Bonds, 5.00%, 04/01/2017		1,655,000		1,797,198


				11,516,333



Pennsylvania (0.6%)
Pennsylvania State University General Obligation Unlimited Bonds, 5.25%, 03/01/2016		1,000,000		1,111,950



South Carolina (4.9%)
Greenville, South Carolina Waterworks Revenue Bonds, 5.25%, 02/01/2016		1,685,000		1,859,836
South Carolina State Housing Finance & Development Authority Homeownership Mortgage Purchase Bonds, Series 1994-A, 6.38%, 07/01/2016		1,055,000		1,071,891
South Carolina State Public Service Authority Revenue Bonds, Series A, 5.50%, 01/01/2022		1,000,000		1,100,250
South Carolina Transportation Infrastructure Revenue Bonds, 5.50%, 10/01/2030		1,000,000		1,140,190
South Carolina Transportation Infrastructure Revenue Bonds, Series A, 5.38%, 10/01/2024		3,000,000		3,207,269
Spartanburg, South Carolina Water System Revenue Bonds, Series 1996, 6.10%, 06/01/2021		1,000,000		1,065,280


				9,444,716



Tennessee (2.9%)
Nashville & Davidson County, Tennessee Health & Educational Facilities Revenue Bonds (Meharry Medical College New Collateralized), Series 1979, 7.88%, 12/01/2004		125,000		125,613
Shelby County, Tennessee Educational & Housing Facilities Board Revenue Bonds (St. Judes Children’s Research), 5.38%, 07/01/2024		4,200,000		4,359,852
Shelby County, Tennessee Health Educational & Housing Facilities Board Revenue Bonds (St. Judes Children’s Research), 6.00%, 07/01/2014		1,000,000		1,109,090


				5,594,555



Texas (17.3%)
Beaumont Independent School District, Texas General Obligation Unlimited Tax School Building Bonds, Series 1996, 5.00%, 02/15/2016		2,325,000		2,414,978
Collin County, Texas Permanent Improvement General Obligation Limited Tax Bonds, Series A, 5.50%, 02/15/2019		1,300,000		1,419,288
Comal, Texas Independent School District General Obligation Unlimited Tax School Building and Refunding Bonds, 5.63%, 08/01/2019		2,000,000		2,222,340
Fort Bend Independent School District, Texas General Obligation Unlimited Tax Bonds, Series 1996, 5.00%, 02/15/2018		2,300,000		2,416,219
Fort Worth, Texas General Obligation Limited Tax Bonds, 5.63%, 03/01/2017		1,350,000		1,460,727
Harris County, Texas Health Facilities Development Corporation Revenue School Health Care Systems, Series B, 5.75%, 07/01/2027		5,325,000		6,206,340
Houston, Texas Independent School District General Obligation Limited Tax School House Refunding Bonds, Series 1997, 5.38%, 08/15/2017		1,500,000		1,598,865
Houston, Texas Independent School District General Obligation Limited Tax School House Refunding Bonds, Series A, 4.75%, 02/15/2026		2,000,000		2,008,140
Leander, Texas Independent School District General Obligation Unlimited Refunding Bonds, 5.00%, 08/15/2022		1,000,000		1,055,410
Lower Colorado River Authority, Texas Junior Lien Refunding Revenue Bonds, Escrowed Series 1992, 6.00%, 01/01/2017		1,245,000		1,524,689
Montgomery County, Texas General Obligation Limited, 5.25%, 09/01/2019		1,000,000		1,086,390
San Antonio, Texas Water Revenue Bonds, 5.00%, 05/15/2025		1,000,000		1,036,850
Socorro, Texas Independent School District General Obligation Unlimited Tax Bonds, Series A, 5.75%, 02/15/2014		1,000,000		1,096,490
Spring Branch, Texas Independent
School District General Obligation Limited, 5.20%, 02/01/2020		1,500,000		1,608,630
United Independent School District General Obligation Unlimited Tax Bonds, 5.38%, 08/15/2025		1,000,000		1,054,440
Weatherford, Texas Independent School District General Obligation Unlimited Tax School Building and Refunding Bonds, Series 1994, 6.50%, 02/15/2015		2,655,000		2,690,763
Wichita Falls, Texas Water and Sewer Revenue Bonds (Priority Lien), 5.38%, 08/01/2019		2,000,000		2,195,720


				33,096,279

2004 Annual Report 105


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Tax Free Income Fund (Continued)

Core Series



Municipal Bonds (continued)

	Principal
	Amount		Value

Utah (0.5%)
Utah State Housing Finance Agency Multi-Family Housing Refunding Revenue Bonds, (Cottonwoods Apartment Project), Issue 1995, 6.30%, 07/01/2015	$	1,000,000	$	1,022,750



Vermont (1.2%)
Vermont Educational & Health Buildings Financing Agency Revenue Bonds (Fletcher Allen Health), Series A, 6.00%, 12/01/2023		2,000,000		2,275,820



Virginia (4.2%)
Fairfax County, Virginia Water Authority Refunding Revenue Bonds, Series 1992, 6.00%, 04/01/2022		940,000		1,035,842
Henrico County, Virginia Water & Sewer System Refunding Revenue Bonds, Series 1994, 5.88%, 05/01/2014		1,205,000		1,231,847
Virginia College Building Authority Educational Facilities Revenue Bonds, 5.00%, 02/01/2018		3,955,000		4,268,751
Virginia Commonwealth Transportation Board Revenue Bonds, 5.00%, 04/01/2018		1,435,000		1,551,178


				8,087,618



Washington (5.6%)
Seattle, Washington Municipal Light & Power Revenue Improvement & Refunding Revenue Bonds, 5.13%, 03/01/2026		1,000,000		1,033,890
Seattle, Washington Water Systems Revenue Bonds, 5.38%, 03/01/2029		2,000,000		2,110,960
Washington State General Obligation Limited, 5.00%, 01/01/2015		2,500,000		2,717,600
Washington State Motor Vehicle Fuel Tax General Obligation Unlimited Tax Bonds, Series 1997-D, 5.38%, 01/01/2022		3,500,000		3,716,370
Washington State Motor Vehicle Fuel Tax General Obligation Unlimited Tax Bonds, Series C, 5.80%, 01/01/2017		1,000,000		1,125,040


				10,703,860



Wisconsin (1.5%)
Wisconsin State General Obligation Unlimited, Series C, 5.55%, 05/01/2021		1,000,000		1,106,200
Wisconsin State Transportation Revenue Bonds, Series A, 5.50%, 07/01/2016		1,500,000		1,707,240


				2,813,440


Total Municipal Bonds				189,836,949


Total Investments (Cost $174,261,658) (a) — 98.8%				189,836,949
Other assets in excess of liabilities — 1.2%				2,402,327


NET ASSETS — 100.0%			$	192,239,276


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

Distribution of investments, as a percentage of net assets in securities at value, is as follows:


Industry	Percent		Value


Air, Water, and Solid Waste		1.14%	$	2,195,720
Airports Flying Fields		2.53%		4,861,010
Colleges and Universities		5.42%		10,427,553
Educational Services		0.57%		1,096,490
Electric and Other Services		0.79%		1,528,193
Elementary and Secondary Schools		5.88%		11,296,078
Environmental Quality		0.19%		366,489
Facilities Support Services		4.02%		7,720,238
Finance, Taxation, and Money		6.45%		12,391,293
General Obligation		25.24%		48,515,820
Health Services		7.32%		14,076,715
Highway and Street Construction		0.81%		1,551,178
Hospitals		10.78%		20,727,718
Local and Surburban		1.09%		2,101,460
Multi-Family Housing		0.53%		1,022,750
Regulation, Administration of Transportation		1.53%		2,935,624
Regulation, Administration of Utilities		0.54%		1,033,890
Single Family Housing		1.59%		3,059,508
Tobacco and Tobacco Products		3.62%		6,953,730
Transportation Services		7.96%		15,310,689
Water, Sewer, and Utility		10.75%		20,664,803

		98.75%	$	189,836,949

See notes to financial statements.

106 Annual Report 2004

Core Series


	Gartmore Money Market Fund

For the annual period ended Oct. 31, 2004, the Gartmore Money Market Fund returned 0.67% (Prime Shares) versus 0.69% for its benchmark, the iMoneyNet First Tier Retail Index. For broader comparison, the average return for the Fund’s Lipper peer category of Money Market Funds was 0.47%.

The rate of increase for U.S. inflation was 2.78% for the year ended Oct. 31, 2004. The target federal funds rate increased from 1.00% as of Oct. 31, 2003, to 1.75% on Oct. 31, 2004. The target federal funds rate, however, was stable at 1.00% until June 30, 2004, when the rate was increased 25 basis points to 1.25%, followed incremental increases of 25 basis points on Aug. 11 and Sept. 21, 2004.

The Sept. 21, 2004, Federal Reserve Board Meeting Minutes suggested that economic growth regained some vigor in recent months after having slowed in late spring. The Minutes indicated that the labor market improved in August, with the unemployment rate edging down to 5.4%. The staff forecast prepared for the Sept. 2004 Federal Reserve Board Meeting suggested that the economy would continue expanding at a solid pace through the end of 2006.

As we anticipated increases in the target federal funds rate to commence with the second quarter, the Fund restricted purchases of floating-rate notes to those with daily or monthly interest-rate adjustments. Floating-rate securities recently acquired will reset off the federal funds effective rate or the London Interbank Offered Rate (LIBOR). The effective federal funds rate and LIBOR are live market indicators, because these rates do not lag interest rates currently available to investors. Floating-rate notes provide a premium over issues with shorter maturity dates. As of Oct. 31, 2004, floating-rate notes represented 20.0% of the Fund’s net assets.

The purchase of floating rate notes with monthly resets is a defensive move against rising interest rates. Funds are invested at higher rates than straight one-month maturities of commercial paper. Because the interest rates float off live market indicators, buying floating rate notes with monthly resets keeps the interest rate more current than buying three, six or one-year floating rate notes. If the Fund acquired floating rate notes with longer time periods between resets, the Fund’s return would lag current market rates.

The Fund’s weighted average maturity was 40 days on Oct. 31, 2004, versus 63 days on Oct. 31, 2003. The decrease in the Fund’s weighted average maturity positioned it to capitalize on higher returns.

Portfolio Manager: Pat Mynster


	Institutional Class: GMIXX
	Prime: MIFXX
	Service Class: NWSXX

2004 Annual Report 107

Core Series

Gartmore Money Market Fund


	Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


	One		Five		Ten
	Year		Years		Years


Institutional Class Shares ¹		0.73%		2.54%		3.80%

Prime Shares		0.67%		2.49%		3.77%

Service Class Shares¹		0.52%		2.38%		3.71%

There is no sales charge on the shares of the Money Market Fund. Past performance is no guarantee of future results.

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 Prime shares. These returns were achieved prior to the creation of Service Class shares (1/4/99), and Institutional Class shares (12/13/01). Excluding the effects of any fee waivers or reimbursements, such prior performance is similar to what Service Class and Institutional Class shares would have produced during those periods because all classes of the Fund’s shares invest in the same portfolio of securities. The performance 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 the Service Class shares would have been lower.

Performance of a $10,000 Investment

LOGO


	Prime Shares		IMoneyNet-First Tier Retail		CPI

Oct. 31, 94		10000.00		10000.00		10000.00
Oct. 31, 95		10548.00		10538.00		10280.90
Oct. 31, 96		11080.00		11057.50		10588.60
Oct. 31, 97		11642.00		11606.00		10809.40
Oct. 31, 98		12242.00		12190.90		10969.90
Oct. 31, 99		12807.00		12739.50		11250.80
Oct. 31, 00		13542.00		13456.70		11638.80
Oct. 31, 01		14113.00		14032.70		11886.30
Oct. 31, 02		14287.00		14208.10		12127.10
Oct. 31, 03		14386.00		14287.70		12374.60
Oct. 31, 04		14482.00		14362.00		12719.10

Comparative performance of $10,000 invested in Prime Shares of the Gartmore Money Market Fund, the IMoneyNet-First Tier Retail(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 does not reflect any fees or expenses. Investors cannot invest directly in market indexes.


(a)		The IMoneyNet-First Tier Retail is an average of non-government retail money market mutual funds that do not invest in any second tier securities. Portfolio holdings of first tier money market mutual funds include U.S. treasury, U.S. other, repurchase agreements, time deposits, domestic bank obligations, foreign bank obligations, first tier commercial paper, floating rate notes, and asset-backed commercial paper.

(b)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

108 Annual Report 2004

Gartmore Money Market Fund

Shareholder Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


			Beginning		Ending
			Account Value		Account Value		Expenses Paid		Annualized
Money Market Fund			5/1/04		10/31/04		During Period*		Expense Ratio


Institutional Class	Actual		$	1,000	$	1,004	$	2.67		0.53%
	Hypothetical	¹	$	1,000	$	1,022	$	2.70		0.53%

Prime	Actual		$	1,000	$	1,004	$	2.97		0.59%
	Hypothetical	¹	$	1,000	$	1,022	$	3.00		0.59%

Service Class	Actual		$	1,000	$	1,003	$	3.78		0.75%
	Hypothetical	¹	$	1,000	$	1,021	$	3.82		0.75%


*	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 109

Gartmore Money Market Fund

Core Series


	Portfolio Summary
	(October 31, 2004)


Asset Allocation


Commercial Paper			67.6%
Floating Rate Notes			20.0%
U.S. Government Sponsored & Agency Obligations			6.3%
Taxable Municipal Bonds			3.6%
Certificates of Deposit			2.2%
Corporate Bonds			0.4%
Liabilities in excess of Other Assets			-0.1%

			100.0%


Top Industries


Asset Backed Securities — Yankee			14.2%
Banks — Foreign			10.9%
Asset Backed Trade & Term Receivables			10.4%
Asset Backed Home Loans			6.8%
Personal Credit Institutions			5.2%
Banks — Domestic			4.8%
Asset Backed CDO			4.3%
Finance Services			4.1%
Asset Backed CDO — Trust Preferred			3.6%
Frozen Bakery Products			3.3%
Other Industries			32.4%

			100.0%


Top Holdings


Abbey National PLC, 1.85%, 11/24/04			2.3%
Iowa Student Loan Liq. Co., 1.84%, 11/17/04			2.2%
State Street Corp., 1.31%, 04/15/05			2.2%
Sigma Finance, Inc., 1.92%, 11/30/04			2.1%
K2 (USA) LLC, 1.64%, 11/06/04			1.9%
PB Finance, 1.95%, 12/20/04			1.8%
Sara Lee Corp., 1.82%, 11/16/04			1.8%
Preferred Receivables Funding Corp., 1.86%, 11/16/04			1.7%
Household Finance Corp., 1.77%, 11/03/04			1.5%
Georgetown Funding Co., 1.84%, 11/04/04			1.5%
Other Holdings			81.0%

			100.0%

110 Annual Report 2004

Statement of Investments

October 31, 2004

Gartmore Money Market Fund



Commercial Paper (67.6%)

	Principal
	Amount		Value

ASSET BACKED CDO - TRUST PREFERRED (3.6%)
Lockhart Funding LLC (3.6%)
1.91%, 11/01/04 (b)	$	4,500,000	$	4,500,000
1.85%, 11/03/04 (b)		365,000		364,962
1.88%, 11/12/04 (b)		13,000,000		12,992,589
1.83%, 11/18/04 (b)		25,000,000		24,978,396
1.94%, 12/06/04 (b)		10,000,000		9,981,236
1.94%, 12/07/04 (b)		5,000,000		4,990,350


				57,807,533



ASSET BACKED HOME LOANS (6.8%)
Georgetown Funding Co. (3.4%)
1.84%, 11/04/04 (b)		25,000,000		24,996,166
1.83%, 11/16/04 (b)		5,000,000		4,996,188
1.89% - 1.90%, 11/23/04 (b)		15,000,000		14,982,614
1.96%, 12/28/04 (b)		10,000,000		9,969,125


				54,944,093


Thornburg Mortgage Capital (3.4%)
1.84%, 11/03/04 (b)		15,000,000		14,998,467
1.79%, 11/08/04 (b)		10,000,000		9,996,532
1.90%, 11/17/04 (b)		20,000,000		19,983,110
1.87%, 12/07/04 (b)		10,000,000		9,981,400


				54,959,509


				109,903,602



ASSET BACKED SECURITIES - DOMESTIC (2.6%)
CC USA, Inc. (1.6%)
1.68%, 11/18/04 (b)		8,000,000		7,993,691
1.87%, 11/19/04 (b)		1,554,000		1,552,547
2.08%, 01/27/05 (b)		17,600,000		17,511,957


				27,058,195


Harrier Financial Funding US LLC (1.0%)
1.96%, 11/29/04 (b)		5,700,000		5,691,311
2.19%, 03/15/05 (b)		10,000,000		9,919,227


				15,610,538


				42,668,733



ASSET BACKED SECURITIES - YANKEE (8.1%)
Giro Funding Corp. (0.3%)
1.78%, 11/08/04 (b)		5,414,000		5,412,126


K2 (USA) LLC (1.5%)
1.79%, 11/10/04 (b)		9,900,000		9,895,570
1.15%, 11/15/04 (b)		12,000,000		11,994,680
1.90%, 11/24/04 (b)		3,100,000		3,096,237


				24,986,487


Premier Asset Collateralized Entity LLC (2.5%)
1.84%, 11/18/04 (b)		18,000,000		17,984,360
1.76%, 11/23/04 (b)		15,000,000		14,983,958
1.93%, 12/13/04 (b)		3,000,000		2,993,245
2.03%, 01/07/05 (b)		4,700,000		4,682,331


				40,643,894


Sigma Finance, Inc. (2.6%)
1.87%, 11/01/04 (b)		2,250,000		2,250,000
1.92%, 11/30/04 (b)		34,000,000		33,947,413
1.24%, 12/03/04 (b)		5,000,000		5,000,000


				41,197,413


Stanfield Victoria Funding LLC (1.2%)
1.74%, 11/15/04 (b)		5,000,000		4,996,637
1.90%, 11/22/04 (b)		5,000,000		4,994,458
1.88%, 11/29/04 (b)		4,500,000		4,493,420
1.92%, 12/20/04 (b)		5,000,000		4,987,001


				19,471,516


				131,711,436



ASSET BACKED TRADE & TERM RECEIVABLES (10.4%)
Falcon Asset Securitization Corp. (0.9%)
1.85%, 11/18/04 (b)		14,382,000		14,369,436


Golden Funding Corp. (1.8%)
1.87%, 11/17/04 (b)		5,414,000		5,409,500
1.93%, 12/07/04 (b)		2,870,000		2,864,490
1.92%, 12/09/04 (b)		20,656,000		20,614,355


				28,888,345


Kitty Hawk Funding Corp. (0.4%)
1.83%, 11/15/04 (b)		6,531,000		6,526,352


Old Line Funding Corp. (2.9%)
1.79%, 11/10/04 (b)		6,000,000		5,997,315
1.80%, 11/15/04 (b)		15,000,000		14,989,500
1.83%, 11/19/04 (b)		15,281,000		15,267,017
1.94%, 12/07/04 (b)		11,551,000		11,528,591


				47,782,423


Preferred Receivables Funding Corp. (1.7%)
1.86%, 11/16/04 (b)		28,352,000		28,330,027


Three Rivers Funding Corp. (2.7%)
1.78%, 11/01/04 (b)		15,000,000		15,000,000
1.81%, 11/15/04 (b)		13,144,000		13,134,748
1.82%, 11/16/04 (b)		15,000,000		14,988,625


				43,123,373


				169,019,956

2004 Annual Report 111


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Money Market Fund (Continued)

Core Series



Commercial Paper (continued)

	Principal
	Amount		Value

BANKS - DOMESTIC (1.2%)
State Street Corp. (1.2%)
1.77%, 11/01/04	$	12,900,000	$	12,900,000
1.80%, 11/16/04		7,000,000		6,994,750


				19,894,750



BANKS - FOREIGN (9.2%)
Abbey National North America LLC (2.2%)
1.85%, 11/24/04		37,307,000		37,262,905


ANZ National (Int’l) Ltd. (1.9%)
1.78%, 11/05/04 (b)		25,000,000		24,995,069
2.07%, 01/27/05 (b)		5,300,000		5,273,615


				30,268,684


BBVA Bancomer SA (0.6%)
1.81%, 01/18/05 (b)		10,000,000		9,961,000


HBOS Treasury Services PLC (2.1%)
1.61%, 11/05/04		2,204,000		2,203,608
1.80%, 11/10/04		200,000		199,910
1.86%, 11/26/04		3,100,000		3,096,010
1.86%, 11/29/04		4,929,000		4,921,899
1.86%, 11/30/04		7,260,000		7,249,181
1.90% - 1.91%, 12/07/04		7,700,000		7,685,404
1.89% - 1.91%, 12/08/04		8,442,000		8,425,612


				33,781,624


Societe Generale North American (0.6%)
1.10%, 12/10/04		10,000,000		9,988,192


UBS Finance (DE) LLC (1.2%)
1.81%, 11/24/04		1,300,000		1,298,497
1.85% - 1.86%, 11/29/04		16,747,000		16,722,938
1.94%, 12/21/04		1,000,000		997,319


				19,018,754


Westcap Capital Corp. (0.6%)
1.92%, 11/23/04		5,700,000		5,693,312
1.84%, 11/26/04		2,642,000		2,638,632
2.03%, 01/27/05		1,190,000		1,184,191


				9,516,135


				149,797,294



BANKS - MORTGAGE (1.8%)
Countrywide Home Loans (0.5%)
1.86%, 11/12/04		2,592,000		2,590,527
2.01%, 12/20/04		5,155,000		5,140,967


				7,731,494


Northern Rock PLC (1.3%)
1.68%, 11/16/04 (b)		21,000,000		20,985,387


				28,716,881



BROKER / DEALERS (1.5%)
Bear Stearns Cos., Inc. (0.6%)
1.79%, 11/17/04 (b)		10,000,000		9,992,044


Morgan Stanley Dean Witter & Co. (0.9%)
1.79%, 11/02/04		15,000,000		14,999,255


				24,991,299



CUTLERY, HAND TOOLS, & HARDWARE (0.1%)
Gillette Co. (0.1%)
1.89%, 11/01/04 (b)		1,139,000		1,139,000



FINANCE LESSORS (3.1%)
PB Finance (Delaware) (3.1%)
1.69%, 11/15/04		10,000,000		9,993,467
1.87%, 11/16/04		6,000,000		5,995,325
1.95%, 12/20/04		30,000,000		29,920,783
2.03%, 01/06/05		5,000,000		4,981,392


				50,890,967



FINANCE SERVICES (4.1%)
ING US Funding (3.3%)
1.77%, 11/02/04		20,000,000		19,999,017
1.67%, 11/08/04		800,000		799,742
1.67%, 11/10/04		2,000,000		1,999,170
1.85%, 12/03/04		23,000,000		22,962,382
1.86%, 12/10/04		700,000		698,590
1.89%, 12/17/04		8,000,000		7,980,680


				54,439,581


Private Export Funding Corp. (0.8%)
2.07%, 02/02/05 (b)		12,642,000		12,574,723


				67,014,304



FROZEN BAKERY PRODUCTS (3.3%)
Sara Lee Corp. (3.3%)
1.82%, 11/16/04 (b)		29,031,000		29,008,985
1.93%, 11/24/04 (b)		10,000,000		9,987,669
1.87%, 12/01/04 (b)		14,518,000		14,495,497


				53,492,151



INSURANCE CARRIERS (1.0%)
Allianz Finance Corp. (1.0%)
1.61%, 11/01/04 (b)		15,863,000		15,863,000



PERSONAL CREDIT INSTITUTIONS (5.2%)
American General Finance Corp. (0.7%)
1.78%, 11/04/04		11,851,000		11,849,242


American Honda Finance Corp. (0.8%)
1.77%, 11/09/04		12,187,000		12,182,206

112 Annual Report 2004



Commercial Paper (continued)

	Principal
	Amount		Value

PERSONAL CREDIT INSTITUTIONS (continued)
General Electric Capital Corp. (1.8%)
1.16%, 11/02/04	$	5,000,000	$	4,999,840
1.78%, 11/17/04		24,000,000		23,981,014


				28,980,854


Household Finance Corp. (1.9%)
1.77%, 11/03/04		25,000,000		24,997,542
1.81%, 11/18/04		6,300,000		6,294,615


				31,292,157


				84,304,459



PHARMACEUTICALS (0.2%)
Bristol-Myers Squibb Co. (0.2%)
1.91%, 11/22/04 (b)		3,000,000		2,996,658



RAILROAD TRANSPORTATION (0.7%)
Network Rail Fin PLC (0.7%)
1.87%, 12/06/04 (b)		11,000,000		10,980,108



SUBDIVIDERS & DEVELOPERS (3.1%)
Yorkshire Building Society (3.1%)
1.83%, 11/17/04		15,149,000		15,136,746
1.91%, 12/08/04		11,772,000		11,749,012
1.92%, 12/14/04		2,760,000		2,753,703
2.03%, 01/05/05		10,000,000		9,963,528
2.10%, 01/14/05		10,000,000		9,957,039


				49,560,028



TELECOMMUNICATIONS (1.6%)
Bellsouth Corp. (1.6%)
1.88%, 11/01/04 (b)		1,000,000		1,000,000
1.82%, 11/10/04 (b)		25,000,000		24,988,625


				25,988,625


Total Commercial Paper				1,096,740,784


Floating Rate Notes (20.0%)
ASSET BACKED CDO (4.3%)
Castle Hill III CLO Ltd. (0.6%)
1.91%, 12/15/04 (b) (c)		10,000,000		10,000,000


Commodore CDO I LTD Class A1MM (0.9%)
1.97%, 12/12/04 (b) (c)		15,000,000		15,000,000


Davis Square Funding Ltd. (0.6%)
1.87%, 11/06/04 (b) (c)		10,000,000		10,000,000


Duke Funding VI Managed (0.3%)
2.12%, 01/08/05 (b) (c)		5,000,000		5,000,000


Newcastle CDO, Ltd. (0.6%)
1.96%, 11/24/04 (b) (c)		10,000,000		10,000,000


NorthLake CDO Class I-MM (1.3%)
1.91%, 12/06/04 (b) (c)		20,000,000		20,000,000


				70,000,000



ASSET BACKED EQUIPMENT TRUST (0.3%)
Marlin Leasing Receivables LLC (0.3%)
1.92%, 11/15/04 (b) (c)		5,176,262		5,176,262



ASSET BACKED SECURITIES - YANKEE (6.1%)
K2 (USA) LLC (1.9%)
1.64%, 11/06/04 (b) (c)		30,000,000		29,999,599


Premier Asset Collateralized Entity LLC (0.9%)
1.83%, 11/15/04 (b) (c)		15,000,000		14,997,386


Sigma Finance, Inc. (0.9%)
1.86%, 11/15/04 (b) (c)		15,000,000		15,001,139


Stanfield Victoria Funding LLC (2.4%)
1.86%, 11/15/04 (b) (c)		10,000,000		9,999,981
1.85%, 11/15/04 (b) (c)		17,000,000		16,997,348
1.90%, 11/25/04 (b) (c)		10,000,000		9,997,638


				36,994,967


				96,993,091



BANKS - DOMESTIC (1.4%)
Bank of America Corp. (0.6%)
1.80%, 11/01/04 (c)		10,000,000		10,000,000


Wells Fargo & Co. (0.8%)
1.86%, 11/02/04 (c)		13,000,000		13,000,000


				23,000,000



BANKS - FOREIGN (1.7%)
HBOS Treasury Services PLC (1.1%)
1.75%, 11/20/04 (c)		18,000,000		18,000,000


Westdeutsche Landesbank Giro (0.6%)
1.81%, 11/10/04 (b) (c)		10,000,000		10,000,000


				28,000,000



BANKS - MORTGAGE (0.8%)
Northern Rock PLC (0.8%)
1.87%, 12/09/04 (b) (c)		12,500,000		12,500,000



BROKER / DEALERS (1.7%)
Goldman Sachs Group, Inc. (1.7%)
1.87%, 11/01/04 (b) (c)		13,000,000		13,000,000
1.99%, 11/01/04 (b) (c)		15,000,000		15,000,000


				28,000,000

2004 Annual Report 113


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Money Market Fund (Continued)

Core Series



Floating Rate Notes (continued)

	Principal
	Amount		Value

FINANCE - DIVERSIFIED (1.6%)
General Electric Capital Corp. (1.6%)
1.96%, 11/09/04 (b) (c)	$	19,000,000	$	19,000,000
1.99%, 11/17/04 (b) (c)		7,000,000		7,000,000


				26,000,000



INSURANCE (0.9%)
Allstate Life Global Funding (0.9%)
1.83%, 11/08/04 (b) (c)		15,000,000		15,000,000



U.S. GOVERNMENT SPONSORED AND AGENCY OBLIGATIONS (1.2%)
Federal Home Loan Bank (1.2%)
1.79%, 09/16/05 (c)		20,000,000		19,996,194


Total Floating Rate Notes				324,665,547


U.S. Government Sponsored & Agency Obligations (6.3%)
Federal Home Loan Bank (3.1%)
1.30%, 02/23/05, Callable		10,000,000		10,000,000
1.47%, 03/01/05		10,000,000		10,000,000
1.50%, 03/04/05, Callable		10,000,000		10,000,000
1.40%, 03/29/05, Callable 01/07/05		10,000,000		10,000,000
1.35%, 04/29/05		10,000,000		10,000,000


				50,000,000


Federal Home Loan Mortgage Corporation (0.4%)
1.89%, 03/01/05		7,301,000		7,255,490


Federal National Mortgage Association (2.8%)
1.58%, 11/03/04		5,677,000		5,676,505
1.77%, 11/10/04		17,976,000		17,968,046
1.79%, 11/12/04		1,075,000		1,074,412
1.40%, 05/03/05, Callable		10,000,000		10,000,000
1.50%, 05/09/05, Callable		10,000,000		10,000,000


				44,718,963


Total U.S. Government Sponsored & Agency Obligations				101,974,453


Taxable Municipal Notes (3.6%)

	Principal
	Amount		Value

ELECTRIC UTILITY (0.8%)
South Carolina Public Service Authority (0.8%)
1.81%, 11/08/04		12,736,000		12,731,518



FINANCE - CONSUMER LOANS (2.3%)
Iowa Student Loan Liq. Co. (2.3%)
1.84%, 11/17/04		36,086,000		36,056,489



FINANCE, TAXATION, & MONETARY POLICY (0.5%)
Sunshine State Governmental Financing Commission (0.5%)
1.83%, 11/05/04		1,643,000		1,642,666
1.83%, 11/05/04		7,143,000		7,141,548


				8,784,214


Total Taxable Municipal Notes				57,572,221


Certificates of Deposit (2.2%)
BANKS - DOMESTIC (2.2%)
State Street Corp. (2.2%)
1.31%, 04/15/05		35,000,000		35,000,000


Total Certificates of Deposit				35,000,000


Corporate Bonds (0.4%)
ASSET BACKED AUTO RECEIVABLES (0.3%)
CPS Auto Trust Series 2004-B (0.3%)
1.80%, 07/15/05		3,445,001		3,445,001



ASSET BACKED EQUIPMENT TRUST (0.1%)
CIT Equipment Collateral (0.1%)
1.12%, 03/20/05, Callable		2,422,852		2,422,852


Total Corporate Bonds				5,867,853

114 Annual Report 2004



Money Market (0.0%)

	Shares		Value

MANAGEMENT INVESTMENT, OPEN-END - MUTUAL FUNDS (0.0%)
Aim Liquid Assets Portfolio - Institutional Class		18,200	$	18,200


Total Money Market				18,200


Total Investments (Cost $1,621,839,058) (a) — 100.1%				1,621,839,058
Liabilities in excess of other assets — (0.1)%				(1,505,393)


NET ASSETS — 100.0%			$	1,620,333,665


(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 in effect on October 31, 2004. The maturity date represents the next reset date for the security.

CDO Collateralized Debt Obligation

See notes to financial statements.

2004 Annual Report 115

Core Series


	Gartmore Morley Enhanced Income Fund

For the annual period ended Oct. 31, 2004, the Gartmore Morley Enhanced Income Fund returned 0.73% (Class A at NAV) versus 1.32% for its benchmark, the Lipper Ultra-Short Bond Fund Index. For broader comparison, the average return for the Fund’s Lipper peer category of Short Investment Grade Debt Funds was 1.89%.

After remaining near 40-year lows for the first five months of the period, interest rates on ultra-short assets, those generally with maturities of less than two years, began to rise in April 2004 in anticipation of the Federal Reserve’s move to a tighter monetary policy. On June 30, the Fed announced the first of what would be three 25-basis-point increases in the target federal funds rate that would eventually bring the rate to 1.75% by the end of the period. Six-month U.S. Treasury Bills finished the period with yields that were 114 basis points higher at 2.17%. Two-year Treasury Note yields increased 76 basis points to 2.58%, resulting in a much flatter yield curve. The increase in rates had a more negative impact on the Fund’s return as the value of fixed-income assets fell. The Fund also maintains an ultra-high credit quality focus, which limited the return potential from these assets relative to lower-quality investments.

We shortened the duration of the Fund’s assets during the period from 2.08 years to 0.97 years, reducing exposure to longer-duration assets. We further reduced the futures hedge in the Fund’s portfolio that serves to lower the Fund’s overall duration. On a hedged basis, the Fund’s duration was lowered from 0.97 years on April 30, 2004, to 0.65 years on Oct. 31, 2004.

The Fund’s strategy is intended to help the Fund maintain a defensive position against a rising interest-rate environment. By continuing to move out of the Fund’s longest-duration assets into ultra-short assets and reducing the futures hedge, we expect the Fund’s performance to be more competitive relative to its benchmark and peers. The Fund continues to maintain a high credit quality focus with 97% of the assets rated AAA by nationally recognized security rating services.

Portfolio Managers: Perpetua Phillips and Mark Kummerer


	Class A: NMEAX
	Institutional Class: NMEIX
	Institutional Service Class: NMESX
	Class R: GMERX

116 Annual Report 2004

Gartmore Morley Enhanced Income Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One year		Inception¹


Class A	without sales charge²		0.73%		2.21%
	with sales charge³		-3.04%		1.41%

Class R^4,5			0.48%		2.18%

Institutional Class⁴			1.07%		2.61%

Institutional Service Class⁴			0.82%		2.37%

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 December 29, 1999.

²	These returns do not reflect the effects of sales charges (SC).

³	A 3.75% front-end sales charge was deducted.

⁴	Not subject to any sales charges.

⁵	These returns until the creation of Class R shares (10/1/03) include the performance of the Fund’s Class A shares. Excluding the effects of any fee waivers or reimbursements, such prior performance is similar to what Class R shares would have produced because Class R shares invest in the same portfolio of securities as Class A shares. The performance for these classes has been restated to reflect the fact that Class R shares do not have any applicable sales charges, but does not reflect the differing levels of other fees (primarily Rule 12b-1 and/or administrative services fees) applicable to Class R shares; if these fees were reflected, the performance for Class R shares would have been lower.

Performance of a $10,000 Investment

LOGO


	Class A (A 3.75% front-end
	sales charge was deducted.)		Lipper Ultra Short Fund Index		CPI

Dec 29, 99		9625		10000		10000
Oct 31, 00		9996		10539.9		10339
Oct 31, 01		10322		11259.6		10559
Oct 31, 02		10487		11498		10772
Oct 31, 03		10626		11742.8		10992
Oct 31, 04		10701		11897		11298

Comparative performance of $10,000 invested in Class A shares of the Gartmore Morley Enhanced Income Fund, Lipper Ultra Short Fund 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 Lipper Ultra-Short Bond Fund Index consists of funds with at least 65% of their assets in investment-grade debt instruments and maintains a portfolio with average maturity between 91 and 365 days.

(b)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

2004 Annual Report 117

Gartmore Morley Enhanced Income Fund

Core Series


	Shareholder
	Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


			Beginning		Ending
			Account Value		Account Value		Expenses Paid		Annualized
Morley Enhanced Income Fund			5/1/04		10/31/04		During Period*		Expense Ratio


Class A	Actual		$	1,000	$	1,000	$	4.03		0.80%
	Hypothetical	¹	$	1,000	$	1,021	$	4.07		0.80%

Class R	Actual		$	1,000	$	999	$	4.58		0.91%
	Hypothetical	¹	$	1,000	$	1,015	$	4.62		0.91%

Institutional Service Class	Actual		$	1,000	$	1,001	$	3.53		0.70%
	Hypothetical	¹	$	1,000	$	1,021	$	3.56		0.70%

Institutional Class	Actual		$	1,000	$	1,004	$	2.27		0.45%
	Hypothetical	¹	$	1,000	$	1,023	$	2.29		0.45%


*	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.

118 Annual Report 2004

Gartmore Morley Enhanced Income Fund

Portfolio Summary

(October 31, 2004)


Asset Allocation


Asset Backed Securities			57.6%
Commercial Mortgage Backed Securities			12.6%
Collateralized Mortgage Obligations			10.7%
U.S. Government Agencies			8.7%
Repurchase Agreement			5.4%
Corporate Bonds			3.7%
U.S. Government Agencies — Mortgages			2.1%
Sovereign Bonds			1.7%
Other Investments*			1.4%
Liabilities in excess of Other Assets**			-3.9%

			100.0%


*	Includes value of collateral received from securities lending.

**	Includes value of collateral owed from securities lending.


Top Industries


Credit Cards			20.8%
Auto Loans			19.2%
Mortgage Backed			16.1%
Federal Home Loan Mortgage Corporation			9.9%
Federal National Mortgage Association			7.3%
Financial Services			3.7%
Federal Home Loan Bank			3.5%
Sovereign Bond			1.7%
Agency Wrapped			1.5%
Whole Loans			0.8%
Other Industries			15.5%

			100.0%


Top Holdings


Residential Asset Mortgage Products, Inc., 3.18%, 03/25/27			1.9%
Federal Home Loan Bank, 2.13%, 12/15/04			1.8%
Federal National Mortgage Association, 1.79%, 11/12/04			1.8%
Federal Home Loan Mortgage Corporation, 1.51%, 12/07/04			1.8%
Federal Home Loan Bank, 1.51%, 12/08/04			1.8%
Ontario Province, 6.00%, 02/21/06			1.7%
American Express Credit Account Master Trust, 5.53%, 10/15/08			1.7%
Capital One Master Trust, 7.2%, 08/15/08			1.7%
Daimler Chrysler Auto Trust, 4.49%, 10/06/08			1.6%
Federal Home Loan Mortgage Corporation, 3.75%, 09/15/22			1.6%
Other Holdings			82.6%

			100.0%

2004 Annual Report 119

Core Series


	Statement of Investments
	October 31, 2004

Gartmore Morley Enhanced Income Fund



Asset Backed Securities (57.6%)

	Principal
	Amount		Value

Agency Wrapped (1.5%)
Federal Home Loan Mortgage Corporation (0.7%)
Series T-50, Class A7, 3.55%, 10/27/31	$	2,000,000	$	2,015,142


Federal National Mortgage Association (0.8%)
Series 2003-W13, Class AF3, 2.85%, 10/25/33		2,500,000		2,494,958


				4,510,100



Auto Loans (19.2%)
Capital Auto Receivables Asset Trust, Series 2002-3, Class A2A, 3.05%, 09/15/05		774,745		775,488
Capital Auto Receivables Asset Trust, Series 2003-1, A2A, 2.27%, 01/17/06		4,025,000		4,026,843
Capital Auto Receivables Asset Trust, Series 2003-2, Class A3A, 1.44%, 02/15/07		2,504,009		2,489,434
Capital Auto Receivables Asset Trust, Series 2002-1, Class A4, 4.16%, 07/16/07		4,102,136		4,128,202
Capital One Auto Finance Trust, 3.44%, 06/15/09		4,000,000		4,039,653
Chase Manhattan Auto Owner Trust, Series 2003-C, Class A2, 1.60%, 09/15/06		2,274,594		2,269,670
Chase Manhattan Auto Owner Trust, Series 2003-A, Class A3, 1.52%, 05/15/07		4,950,000		4,921,738
Chase Manhattan Auto Owner Trust, Series 2002-B, Class A4, 4.21%, 01/15/09		4,000,000		4,051,567
Daimler Chrysler Auto Trust, Series 2003-B, Class A2, 1.61%, 07/10/06		3,175,252		3,170,157
Daimler Chrysler Auto Trust, Series 2003-A, Class A3, 2.12%, 11/08/06		5,000,000		4,990,513
Daimler Chrysler Auto Trust, 4.49%, 10/06/08		5,000,000		5,062,679
Ford Credit Auto Owner Trust, Series 2002-B, Class A4, 4.75%, 08/15/06		4,000,000		4,054,946
Ford Credit Auto Owner Trust, Series 2002-C, Class A4, 3.79%, 09/15/06		3,500,000		3,526,665
Honda Auto Receivables Owner Trust, Series 2003-3, Class A2, 1.52%, 04/21/06		3,104,962		3,099,752
Honda Auto Receivables Owner Trust, 1.92%, 11/20/06		3,621,748		3,615,238
Honda Auto Receivables Owner Trust, Series 2004-3, Class A2, 2.48%, 05/18/07		5,000,000		4,999,999


				59,222,544



Credit Cards (20.8%)
American Express Credit Account Master Trust, Series 01-2, Class A, 5.53%, 10/15/08		5,000,000		5,191,556
Bank One Issuance Trust, Series 2002-A2, Class A2, 4.16%, 01/15/08		4,000,000		4,037,818
Bank One Issuance Trust, Series 2003-A2, Class A2, 1.92%, 10/15/08		3,100,000		3,101,820
Capital One Master Trust, 2.22%, 08/15/07		5,000,000		4,989,905
Capital One Master Trust, Series 2000-2, Class A, 7.20%, 08/15/08		5,000,000		5,146,361
Capital One Master Trust, 5.45%, 03/16/09		4,500,000		4,652,807
Chase Credit Card Master Trust, Series 2003-1, Class A, 1.92%, 04/15/08		4,000,000		4,002,013
Chase Credit Card Master Trust, Series 2001-6, Class A, 2.00%, 03/16/09		4,000,000		4,009,498
Chemical Master Credit Card Trust I, Series 1996-2, Class A, 5.98%, 09/15/08		4,000,000		4,142,827
Citibank Credit Card Issuance Trust, Series 2003-A5, Class A5, 2.50%, 04/07/08		4,000,000		3,986,863
Citibank Credit Card Master Trust, Series 1999-5, Class A, 6.10%, 05/15/08		3,000,000		3,149,739
Discover Master Card Trust, Series 2002-2, Class A, 5.15%, 10/15/09		2,000,000		2,098,752
Fleet Credit Card Master Trust, 7.02%, 02/15/08		3,901,000		4,041,847

120 Annual Report 2004



Asset Backed Securities (continued)

	Principal
	Amount		Value

Credit Cards (continued)
MBNA Master Credit Card Trust, Series 1999-M, Class A, 6.60%, 04/16/07	$	3,500,000	$	3,507,287
MBNA Master Credit Card Trust, Series 1998-F, Class A, 1.98%, 02/15/08		4,100,000		4,102,095
Standard Credit Card Master Trust, Series 1994-2, Class A, 7.25%, 04/07/08		4,000,000		4,253,095


				64,414,283



Mortgage Backed (16.1%)
Centex Home Equity, Series 2004-C, Class AF1, 2.82%, 01/25/19		3,069,607		3,065,505
Centex Home Equity, 2.98%, 04/25/20		2,457,621		2,456,511
Centex Home Equity, Series 2003-C, Class AF2, 2.92%, 05/25/21		3,000,000		2,997,611
Chase Funding Mortgage Loan, Series 2003-4, Class 1A2, 2.14%, 07/25/18		4,000,000		3,986,148
Chase Funding Mortgage Loan, Series 2002-1, Class 1A3, 5.04%, 12/25/23		48,773		48,702
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A1, 3.11%, 08/01/38		1,874,412		1,880,153
Residential Asset Mortgage Products, Inc., Series 2004-RS1, Class AI2, 2.88%, 08/25/24		5,000,000		4,980,862
Residential Asset Mortgage Products, Inc., Series 2003-RS11, Class AI2, 3.05%, 03/25/25		3,000,000		2,993,715
Residential Asset Mortgage Products, Inc., Series 2003-RZ5, Class A2, 3.18%, 03/25/27		6,000,000		5,982,857
Residential Asset Mortgage Products, Inc., Series 2003-RS5, Class AI3, 2.59%, 10/25/28		3,000,000		2,988,619
Residential Asset Mortgage Products, Inc., Series 2003-RS9, Class AI3, 3.61%, 10/25/28		4,000,000		3,997,766
Residential Asset Securities Corp., Series 2003-KS2, Class AI2, 2.15%, 01/25/24		975,738		974,262
Residential Asset Securities Corp., Series 2002-KS8, Class AI3, 3.69%, 03/25/27		1,599,619		1,601,444
Residential Asset Securities Corp., Series 2003-KS7, Class AI3, 3.37%, 11/25/28		3,000,000		3,005,751
Residential Asset Mortgage, Inc., Series 2003-RS8, Class AI2, 2.90%, 11/25/23		5,000,000		4,989,969
Residential Funding Mortgage Securities I, Series 2004-HS1, Class AI3, 2.68%, 01/25/19		3,900,000		3,819,687


				49,769,562


Total Asset Backed Securities				177,916,489


Commercial Mortgage Backed Securities (12.6%)
Banc of America Commercial Mortgage, Inc., Series 2004-3, Class A1, 2.98%, 06/10/39		4,531,313		4,535,092
Banc of America Commercial Mortgage, Inc., Series 2003-2, Class A1, 3.41%, 03/11/41		4,144,498		4,140,659
Bear Stearns Commercial Mortgage Securities Corp., Series 2001-TOP2, Class A1, 6.08%, 02/15/35		2,559,325		2,713,924
Bear Stearns Commercial Mortgage Securities, Inc., Series 2004-T16, Class A1, 2.62%, 08/13/46		4,000,000		3,970,400
Chase Commercial Mortgage Securities Corp., Series 1998-2, Class A1, 6.03%, 11/18/30		456,558		475,518
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2001-CIB3, Class A1, 4.47%, 11/15/35		2,637,365		2,674,006
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2004-PNC1, Class A1, 2.80%, 06/12/41		3,813,850		3,772,879
LB-UBS Commercial Mortgage Trust, Series 2002-C7, Class A1, 3.17%, 12/15/26		1,432,117		1,432,437
Morgan Stanley Capital I, Series 2004-HQ4, 2.73%, 04/14/40		5,000,000		4,995,701
Morgan Stanley Dean Witter Capital I, Series 2001-TOP3, Class A1, 5.31%, 07/15/33		791,725		808,480
Morgan Stanley Dean Witter Capital I, Series 2002-HQ, Class A1, 4.59%, 04/15/34		279,328		283,820

2004 Annual Report 121


	Statement of Investments (Continued)
	October 31, 2004

Gartmore Morley Enhanced Income Fund (Continued)

Core Series



Commercial Mortgage Backed Securities (continued)

	Principal
	Amount		Value


Morgan Stanley Dean Witter Capital I, Series 2001-TOP5, Class A1, 5.02%, 10/15/35	$	2,016,093	$	2,068,235
Morgan Stanley Dean Witter Capital I, Series 2002-IQ2, Class A1, 4.09%, 12/15/35		486,959		493,386
Morgan Stanley Dean Witter Capital I, Series 2003-T11, Class A1, 3.26%, 06/13/41		2,629,571		2,617,180
Nomura Asset Corp., 6.28%, 03/15/30		3,733,798		3,901,198


Total Commercial Mortgage Backed Securities				38,882,915


Collateralized Mortgage Obligations (10.7%)
Federal Home Loan Mortgage Corporation (7.8%)
Series 2611, Class KC, 3.50%, 01/15/17		2,397,338		2,386,986
Series 2691, Class MA, 4.00%, 01/15/18		3,263,611		3,298,843
Series 2664, Class GA, 4.50%, 01/15/18		2,542,890		2,584,078
Series 2700, Class PA, 4.50%, 04/15/18		3,280,234		3,328,917
Series 2613, Class PA, 3.25%, 05/15/18		2,426,031		2,365,423
Series 2630, Class JA, 3.00%, 06/15/18		2,526,469		2,494,936
Series 2791, Class KA, 4.00%, 11/15/18		2,764,041		2,788,902
Series 2726, Class AC, 3.75%, 09/15/22		5,000,000		5,028,940


				24,277,025



Federal National Mortgage Association (2.1%)
Series 2003-57, Class NB, 3.00%, 06/25/18		2,427,743		2,381,093
Series 2003-75, Class NB, 3.25%, 08/25/18		1,709,629		1,697,466
Series 2003-14, Class AN, 3.50%, 03/25/33		2,492,541		2,466,566


				6,545,125



Whole Loans (0.8%)
Residential Funding Mortgage Securities I, Series 2003-S11, Class A1, 2.50%, 06/25/18		2,426,296		2,352,488


Total Collateralized Mortgage Obligations				33,174,638



U.S. Government Agencies (8.7%)

	Principal
	Amount		Value

Federal Home Loan Bank (3.5%)
1.51%, 12/08/04		5,500,000		5,496,827
2.13%, 12/15/04		5,500,000		5,500,324


				10,997,151



Federal Home Loan Mortgage Corporation (1.8%)
1.51%, 12/07/04		5,500,000		5,497,008



Federal National Mortgage Association (3.4%)
1.79%, 11/12/04		5,500,000		5,497,107
2.88%, 10/15/05		5,000,000		5,025,510


				10,522,617


Total U.S. Government Agencies				27,016,776


Corporate Bonds (3.7%)
Financial Services (3.7%)
AIG Sunamerica Global Financial, 5.85%, 02/01/06		4,000,000		4,145,896
Citigroup, Inc., 6.75%, 12/01/05		3,000,000		3,131,007
General Electric Capital Corp., Series MTNA, 2.97%, 07/26/06		4,000,000		4,015,044


Total Corporate Bonds				11,291,947


U.S. Government Agencies — Mortgages (2.1%)
Federal Home Loan Mortgage Corporation (0.3%)
Pool #E00678, 6.50%, 06/01/14		347,792		368,818
Pool #E00991, 6.00%, 07/01/16		420,234		441,217


				810,035



Federal National Mortgage Association (1.8%)
Pool #190255, 6.50%, 02/01/09		287,467		303,730
Pool #625178, 5.50%, 04/01/09		1,423,885		1,477,296
Pool #254195, 5.50%, 04/01/09		1,481,160		1,536,720
Pool #254256, 5.50%, 04/01/09		161,060		165,434
Pool #545415, 6.00%, 06/01/16		709,957		745,406
Pool #254089, 6.00%, 06/01/16		815,627		856,352

122 Annual Report 2004



U.S. Government Agencies — Mortgages (continued)

	Principal
	Amount		Value

Federal National Mortgage Association (continued)
Pool #253845, 6.00%, 06/01/16	$	509,387	$	534,821


				5,619,759


Total U.S. Government Agencies - Mortgages				6,429,794


Sovereign Bonds (1.7%)
Canada (1.7%)
Ontario Province, 6.00%, 02/21/06		5,000,000		5,212,030


Total Sovereign Bonds				5,212,030


Repurchase Agreements (5.4%)
CS First Boston, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $7,012,189 (Fully collateralized by U.S. Agency Securities and U.S. Treasury Notes)		7,011,166		7,011,166
Nomura Securities, 1.75%, dated 10/29/04, due 11/01/04, repurchase price $9,797,721 (Fully collateralized by AA Rated Corporate Bonds and U.S. Agency Securities)		9,796,292		9,796,292


Total Repurchase Agreements				16,807,458



Short-Term Securities Held as Collateral for Securities Lending (1.4%)

	Principal
	Amount		Value


Pool of short-term securities for Gartmore	$	4,388,720		4,388,720


Mutual Funds - footnote 3
(Securities Lending)
Total Short-Term Securities Held as Collateral for Securities Lending				4,388,720


Total Investments (Cost $322,276,846) (a) — 103.9%				321,120,767
Liabilities in excess of other assets — (3.9)%				(12,170,324)


NET ASSETS — 100.0%			$	308,950,443


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

At October 31,2004, the Fund’s open short futures contracts were as follows:

Unrealized

Market Value

Appreciation

Number of

Short

Covered by

(Depreciation)

Contracts

Contract*

Expiration

Contracts

at 10/31/04

250

U.S. Treasury
2 Year Note

12/31/04

52,941,406

(18,750)


*	Cash pledged as collateral.

See notes to financial statements.

2004 Annual Report 123

Core Series


	Gartmore Morley Capital Accumulation Fund

As previously disclosed to shareholders, the Fund’s Board of Trustees has determined that conversion of the Fund to the Gartmore Short Duration Bond Fund will serve the best interest of the Fund’s shareholders. As of Oct. 31, 2004, the Fund was in a 60-day interim period during which the Fund invested in money market issues and sought to maintain a $10 NAV. At the end of that interim period, on or about Dec. 6, 2004, the Gartmore Short Duration Bond Fund will begin investing in U.S. government, and U.S. government agency, securities and other investment-grade debt securities. The Fund’s investment objective will be to seek a high level of current income while preserving investment capital. The change in objectives is likely to affect the Fund’s yield, and it is expected that the Fund’s NAV will fluctuate with changes in the market.

For the annual period ended Oct. 31, 2004, the Gartmore Morley Capital Accumulation Fund returned 2.35% (Class A at NAV) versus 0.62% for its benchmark, the Lipper Money Market Fund Index. For broader comparison, the average return for the Fund’s Lipper peer category of Short-Intermediate Investment Grade Debt Funds was 3.17%.

After remaining near 40-year lows for the first five months of the period, interest rates began to rise in April 2004 in anticipation of the Federal Reserve’s move to a tighter monetary policy. On June 30, the Fed announced the first of what would be three 25-basis-point increases in the target federal funds rate that would eventually bring the rate to 1.75% by the end of the period. Five-year Treasury Note yields increased only nine basis points to 3.33%, resulting in a much flatter Treasury yield curve, which illustrates the relationship between and for a set of similar bonds. This increase narrowed the Fund’s advantage relative to money market funds, because money market funds were more sensitive to the rise in short rates.

The Fund held longer-maturity securities and maintained an average duration of 2.7 to 3.0 years for most of the period, providing for a yield advantage relative to its benchmark. The yield curve retained its steep slope on the short end, despite the flattening trend that occurred during the period. This scenario provided the Fund with a yield advantage to money market funds. The Fund’s holdings of asset classes such as residential mortgage-backed securities, home equity asset-backed securities and commercial mortgage-backed securities further enhanced performance, given their higher yields. Finally, the Fund’s book value maintenance agreements enabled the Fund to maintain a stable net asset value until their permanent termination in early October.

Portfolio Manager: Perpetua Phillips and Shane Johnston


	Class A: MCAPX
	Service Class: MCAFX
	Institutional Class: MCAIX
	IRA Class: NMIRX

124 Annual Report 2004

Gartmore Morley Capital Accumulation Fund

Fund Performance

Average Annual Total Return

(For periods ended October 31, 2004)


		One		Five
		Year		Years		Inception¹


Class A²	without sales charge³		2.35%		4.18%		4.26%
	with sales charge⁴		-0.73%		3.54%		3.71%

Service Class Shares⁵			2.26%		4.17%		4.26%

Institutional Class Shares⁵			2.69%		4.58%		4.67%

IRA Shares⁵			2.30%		4.16%		4.25%


¹	Fund commenced operations on February 1, 1999.

²	These returns until the creation of Class A shares (7/16/03) include the performance of the Fund’s IRA Class shares. Excluding the effects of any fee waivers or reimbursements, such performance is substantially similar to what Class A shares would have produced because Class A shares invest in the same portfolio of securities as IRA Class shares and have the same expenses after any fee waivers or reimbursements. For Class A returns including sales charges, these returns have been restated for the applicable sales charges.

³	These returns do not reflect the effects of sales charges (SC).

⁴	A 3.00% front-end sales charge was deducted.

⁵	Not subject to any sales charges.

Performance of a $10,000 Investment

LOGO


			Lipper Money Market Fund
	Service Class		Index		CPI

Feb. 1, 99		10000.00		10000.00		10000.00
Oct. 31, 99		10360.00		10344.00		10237.00
Oct. 31, 00		10931.00		10946.00		10590.00
Oct. 31, 01		11548.00		11436.00		10816.00
Oct. 31, 02		12060.00		11605.00		11035.00
Oct. 31, 03		12431.00		11687.30		11260.00
Oct. 31, 04		12709.00		11760.00		11573.00

Comparative performance of $10,000 invested in the Gartmore Morley Capital Accumulation Fund, the Lipper Money Market Fund 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 or expenses. Investors cannot invest directly in market indexes.


(a)		The Lipper Money Market Fund Index generally reflects the return on selected money market mutual funds maintaining a constant price per share.

(b)		The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households.

2004 Annual Report 125

Gartmore Morley Capital Accumulation Fund

Core Series


	Shareholder
	Expense Example

Actual Expenses

Hypothetical Example for Comparison Purposes

Schedule of Shareholder Expenses

Expense Analysis of a $1,000 Investment

(October 31, 2004)


		Beginning		Ending
Morley Capital		Account Value		Account Value		Expenses Paid		Annualized
Accumulation Fund		5/1/04		10/31/04		During Period*		Expense Ratio


Class A	Actual	$	1,000	$	1,011	$	4.30		0.85%
	Hypothetical ¹	$	1,000	$	1,021	$	4.33		0.85%

Institutional Class	Actual	$	1,000	$	1,013	$	2.73		0.54%
	Hypothetical ¹	$	1,000	$	1,022	$	2.75		0.54%

IRA Class	Actual	$	1,000	$	1,011	$	4.50		0.89%
	Hypothetical ¹	$	1,000	$	1,021	$	4.53		0.89%

Service Class	Actual	$	1,000	$	1,010	$	5.15		1.02%
	Hypothetical ¹	$	1,000	$	1,020	$	5.19		1.02%


*	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.

126 Annual Report 2004

Gartmore Morley Capital Accumulation Fund

Portfolio Summary

(October 31, 2004)


Asset Allocation


Repurchase Agreement			53.6%
U.S. Government Sponsored and Agency Obligations			46.6%
Liabilities in excess of Other Assets			-0.2%

			100.0%


Top Industries


Federal National Mortgage Association			44.5%
Federal Home Loan Mortgage Corporation			2.1%
Other			53.4%

			100.0%


Top Holdings


Federal National Mortgage Association, 1.75%, 11/10/04			6.4%
Federal National Mortgage Association, 1.75%, 11/01/04			4.2%
Federal National Mortgage Association, 1.75%, 11/03/04			4.2%
Federal National Mortgage Association, 1.75%, 11/05/04			4.2%
Federal National Mortgage Association, 1.75%, 11/08/04			4.2%
Federal National Mortgage Association, 1.80%, 11/12/04			4.2%
Federal National Mortgage Association, 1.81%, 11/15/04			4.2%
Federal National Mortgage Association, 1.76%, 11/17/04			4.2%
Federal National Mortgage Association, 1.76%, 11/19/04			4.2%
Federal National Mortgage Association, 1.81%, 11/22/04			4.2%
Other Holdings			55.8%

			100.0%

2004 Annual Report 127

Core Series


	Statement of Investments
	October 31, 2004

Gartmore Morley Capital Accumulation Fund



U.S. Government Sponsored and Agency Obligations (46.6%)

	Principal Amount		Value

Federal Home Loan Mortgage Corporation Discount Note (2.1%)
1.67%, 11/01/04	$	15,000,000	$	15,000,000



Federal National Mortgage Association Discount Notes (44.5%)
1.75%, 11/01/04		30,000,000		30,000,000
1.75%, 11/03/04		30,000,000		29,997,191
1.75%, 11/05/04		30,000,000		29,994,167
1.75%, 11/08/04		30,000,000		29,989,792
1.75%, 11/10/04		45,000,000		44,981,332
1.80%, 11/12/04		30,000,000		29,983,949
1.81%, 11/15/04		30,000,000		29,980,256
1.76%, 11/17/04		30,000,000		29,976,533
1.76%, 11/19/04		30,000,000		29,974,656
1.81%, 11/22/04		30,000,000		29,969,456


				314,847,332


Total U.S. Government Sponsored and Agency Obligations				329,847,332



Repurchase Agreements (53.6%)

	Principal Amount		Value

CS First Boston, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $158,069,127 (Fully collateralized by U.S. Treasury Notes and U.S. Agency Securities)	$	158,044,762	$	158,044,762
Nomura Securities, 1.75%, dated 10/29/04, due 11/1/04, repurchase price $220,862,377 (Fully collateralized by U.S. Agency Securities and AA Corporate Bonds)		220,826,677		220,826,677


Total Repurchase Agreements				378,871,439


Total Investments (Cost $708,718,771) (a) — 100.2%				708,718,771
Liabilities in excess of other assets — (0.2)%				(1,223,827)


NET ASSETS — 100.0%			$	707,494,944


(a)		See notes to financial statements for tax unrealized appreciation (depreciation) of securities.

See notes to financial statements.

128 Annual Report 2004

Statements of Assets and Liabilities

October 31, 2004


			Gartmore			Gartmore Government			Gartmore Tax-Free
			Bond Fund			Bond Fund			Income Fund



Assets:
Investments, at value (cost $131,098,913; $170,926,823 and $174,261,658; respectively)			$	138,159,251		$	175,074,002		$	189,836,949
Repurchase agreements, at cost				—			3,842,460			—

		Total Investments		138,159,251			178,916,462			189,836,949

Cash				—			—			161,575
Interest and dividends receivable				1,394,379			1,535,919			3,057,859
Receivable for investments sold				994,584			9,524,728			—
Prepaid expenses and other assets				22,551			22,736			16,570

		Total Assets		140,570,765			189,999,845			193,072,953

Liabilities
Payable to custodian				31,104			—			—
Distributions payable				459,242			543,488			688,292
Payable for investments purchased				—			6,349,559			—
Payable for return of collateral received for securities on loan				12,429,790			—			—
Accrued expenses and other payables
	Investment advisory fees			53,951			77,225			81,365
	Fund administration and transfer agent fees			22,492			24,492			28,995
	Distribution fees			5,125			16,014			8,131
	Administrative servicing fees			7,530			17,318			527
	Other			21,531			31,770			26,367

		Total Liabilities		13,030,765			7,059,866			833,677

Net Assets			$	127,540,000		$	182,939,979		$	192,239,276

Represented by:
Capital			$	124,498,122		$	179,813,675		$	177,412,190
Accumulated net investment income (loss)				(8,583	)		18,629			(156,386	)
Accumulated net realized gains (losses) on investment transactions				(4,009,877	)		(1,039,504	)		(591,819	)
Net unrealized appreciation (depreciation) on investments				7,060,338			4,147,179			15,575,291

Net Assets			$	127,540,000		$	182,939,979		$	192,239,276

Net Assets:
Class A Shares			$	10,668,648		$	55,480,750		$	9,598,673
Class B Shares				102,131			169,636			370,263
Class C Shares				182,446			295,915			983,650
Class D Shares				112,630,941			121,325,444			174,451,100
Class R Shares				1,037			1,019			—
Class X Shares				3,456,715			4,557,272			6,342,480
Class Y Shares				238,157			960,733			493,110
Institutional Shares				259,925			149,210			—

Total			$	127,540,000		$	182,939,979		$	192,239,276

Shares outstanding (unlimited number of shares authorized):
Class A Shares				1,094,274			5,351,122			899,775
Class B Shares				10,475			16,363			34,717
Class C Shares				18,694			28,541			92,423
Class D Shares				11,533,948			11,695,010			16,350,868
Class R Shares				106			98			—
Class X Shares				354,417			439,857			594,579
Class Y Shares				24,392			92,734			46,304
Institutional Shares				26,619			14,381			—

Total				13,062,925			17,638,106			18,018,666

Net asset value:
Class A Shares			$	9.75		$	10.37		$	10.67
Class B Shares (a)			$	9.75		$	10.37		$	10.67
Class C Shares (b)			$	9.76		$	10.37		$	10.64
Class D Shares			$	9.77		$	10.37		$	10.67
Class R Shares			$	9.77		$	10.38		$	—
Class X Shares			$	9.75		$	10.36		$	10.67
Class Y Shares			$	9.76		$	10.36		$	10.65
Institutional Shares			$	9.76		$	10.38		$	—
Maximum offering price per share (100%/(100%-maximum sales charge) of:
Class A Shares			$	10.24		$	10.89		$	11.20
Class D Shares			$	10.23		$	10.86		$	11.17

Maximum Sales Charge — Class A Shares				4.75	%		4.75	%		4.75	%

Maximum Sales Charge — Class D Shares				4.50	%		4.50	%		4.50	%


(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 129

Core Series


	Statements of Assets and Liabilities
	October 31, 2004


			Gartmore			Gartmore Morley			Gartmore Morley
			Money Market			Enhanced Income			Capital Accumulation
			Fund			Fund			Fund



Assets:
Investments, at value (cost $1,621,839,058; $305,469,388 and $329,847,332; respectively)			$	1,621,839,058		$	304,313,309		$	329,847,332
Repurchase agreements, at cost				—			16,807,458			378,871,439

		Total Investments		1,621,839,058			321,120,767			708,718,771

Cash				14			137,669			2,829,522
Interest and dividends receivable				1,096,603			1,055,930			555,349
Receivable from adviser				—			11,555			—
Receivable for investments sold				—			—			459,261
Prepaid expenses and other assets				14,276			14,186			16,034

		Total Assets		1,622,949,951			322,340,107			712,578,937

Liabilities
Payable to advisor				289			—			—
Distributions payable				1,638,244			611,083			774,223
Payable for investments purchased				—			8,213,839			3,129,876
Payable for return of collateral received for securities on loan				—			4,388,720			—
Payable for capital shares redeemed				—			—			248,182
Payable for variation margin on futures contracts				—			31,250			—
Accrued expenses and other payables
	Investment advisory fees			528,662			90,306			168,820
	Fund administration and transfer agent fees			181,240			29,953			99,836
	Distribution fees			539			334			150,621
	Administrative servicing fees			39,623			3,164			215,351
	Wrapper contract premiums			—			—			214,015
	Other			227,689			21,015			83,069

		Total Liabilities		2,616,286			13,389,664			5,083,993

Net Assets			$	1,620,333,665		$	308,950,443		$	707,494,944

Represented by:
Capital			$	1,620,343,846		$	315,585,293		$	708,114,988
Accumulated net investment income (loss)				2			6,882			(50,356	)
Accumulated net realized gains (losses) on investment and futures transactions				(10,183	)		(5,466,903	)		(569,688	)
Net unrealized appreciation (depreciation) on investments and futures				—			(1,174,829	)		—

Net Assets			$	1,620,333,665		$	308,950,443		$	707,494,944

Net Assets:
Class A Shares			$	—		$	1,575,174		$	1,584,663
Class R Shares				—			1,002			—
Institutional Class Shares				1,219,342,910			299,898,382			72,995,977
Institutional Service Class Shares				—			7,475,885			—
IRA Class Shares				—			—			369,014,026
Service Class Shares				5,952,324			—			263,900,278
Prime Shares				395,038,431			—			—

Total			$	1,620,333,665		$	308,950,443		$	707,494,944

Shares outstanding (unlimited number of shares authorized):
Class A Shares				—			171,868			158,460
Class R Shares				—			110			—
Institutional Class Shares				1,219,401,047			32,722,029			7,299,251
Institutional Service Class Shares				—			815,360			—
IRA Class Shares				—			—			36,900,189
Service Class Shares				5,951,284			—			26,389,168
Prime Shares				395,259,828			—			—

Total				1,620,612,159			33,709,367			70,747,068

Net asset value:
Class A Shares			$	—		$	9.16		$	10.00
Class R Shares			$	—		$	9.17		$	—
Institutional Class Shares			$	1.00		$	9.17		$	10.00
Institutional Service Class Shares			$	—		$	9.17		$	—
IRA Class Shares			$	—		$	—		$	10.00
Service Class Shares			$	1.00		$	—		$	10.00
Prime Shares			$	1.00		$	—		$	—
Maximum offering price per share (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent):
Class A Shares			$	—		$	9.52		$	10.31

Maximum Sales Charge — Class A Shares				—			3.75	%		3.00	%

See notes to financial statements.

130 Annual Report 2004

Statements of Operations

For the Year Ended October 31, 2004


		Gartmore			Gartmore Government			Gartmore Tax-Free
		Bond Fund			Bond Fund			Income Fund



INVESTMENT INCOME:
Interest income		$	7,138,073		$	8,645,819		$	9,935,439
Income from securities lending			19,488			13,025			—


	Total Income		7,157,561			8,658,844			9,935,439


Expenses:
Investment advisory fees			660,495			973,826			986,039
Fund administration and transfer agent fees			190,448			246,159			265,269
Distribution fees Class A			25,430			137,887			21,755
Distribution fees Class B			636			1,011			2,310
Distribution fees Class C			575			2,500			7,253
Distribution fees Class R			4			4			—
Distribution fees Class X			30,029			44,057			56,994
Distribution fees Class Y			2,136			11,563			4,158
Administrative servicing fees Class A			6,919			73,677			104
Administrative servicing fees Class D			66,498			126,074			—
Administrative servicing fees Class R			3			3			—
Other			103,263			122,122			98,048


	Total Expenses		1,086,436			1,738,883			1,441,930


Net Investment Income			6,071,125			6,919,961			8,493,509


REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) on investment transactions			3,939,111			(858,692	)		29,089
Net change in unrealized appreciation/depreciation on investments			(2,757,638	)		1,007,897			3,242,490


Net realized/unrealized gains (losses) on investments			1,181,473			149,205			3,271,579


CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		$	7,252,598		$	7,069,166		$	11,765,088

See notes to financial statements.

2004 Annual Report 131

Core Series


	Statements of Operations
	For the Year Ended October 31, 2004


		Gartmore			Gartmore Morley			Gartmore Morley
		Money Market			Enhanced Income			Capital Accumulation
		Fund			Fund			Fund



INVESTMENT INCOME:
Interest income		$	20,722,977		$	6,132,324		$	25,535,404
Dividend income			14,431			—			—
Income from securities lending			—			3,672			32,752

	Total Income		20,737,408			6,135,996			25,568,156

Expenses:
Investment advisory fees			6,418,662			856,504			2,693,481
Fund administration and transfer agent fees			1,914,475			270,039			947,252
Distribution fees Class A			—			5,313			1,764
Distribution fees Class R			—			4			—
Distribution fees IRA Class			—			—			1,133,029
Distribution fees Service Class			6,415			—			593,788
Administrative servicing fees Class A			—			2,031			—
Administrative servicing fees Class R			—			3			—
Administrative servicing fees Institutional Service Class			—			19,834			—
Administrative servicing fees IRA Class			—			—			172,829
Administrative servicing fees Service Class			8,857			—			427,458
Administrative servicing fees Prime Shares			247,145			—			—
Wrapper contract premiums			—			—			1,301,010
Other			488,263			100,846			369,240

	Total expenses before reimbursed expenses		9,083,817			1,254,574			7,639,851
Investment advisory fees voluntarily reduced			—			—			(769,558	)
Expenses reimbursed			(1,937	)		(120,757	)		—

	Total Expenses		9,081,880			1,133,817			6,870,293

Net investment income			11,655,528			5,002,179			18,697,863

REALIZED/ UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
Net realized gains (losses) on investment transactions			(951	)		(419,727	)		(8,080,424	)
Net realized gains (losses) on futures transactions			—			(1,925,046	)		—
Net increase from payment by advisor for losses realized on the disposal of investments			—			—			6,254,100

Net realized gains (losses) on investment and futures transactions			(951	)		(2,344,773	)		(1,826,324	)
Net change in unrealized appreciation/depreciation on investments and futures			—			(97,688	)		1,372,707
Net change in unrealized appreciation/depreciation on wrapper contracts			—			—			(550,681	)

Net realized/unrealized gains (losses) on investments futures and wrapper			(951	)		(2,442,461	)		(1,004,298	)

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		$	11,654,577		$	2,559,718		$	17,693,565

See notes to financial statements.

132 Annual Report 2004

Statements of Changes in Net Assets



	Gartmore						Gartmore Government
	Bond Fund						Bond 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	$	6,071,125		$	7,453,062		$	6,919,961		$	9,506,317
Net realized gains (losses) on investment transactions		3,939,111			1,832,992			(858,692	)		4,881,775
Net change in unrealized appreciation/depreciation on investments		(2,757,638	)		1,999,768			1,007,897			(8,408,900	)


Change in net assets from operations		7,252,598			11,285,822			7,069,166			5,979,192


Distributions to Class A Shareholders from:
Net investment income		(449,448	)		(445,266	)		(1,912,956	)		(2,166,470	)
Net realized gains on investments		—			—			(1,310,536	)		(965,450	)
Distributions to Class B Shareholders from:
Net investment income		(2,334	)		(50	) (a)		(2,899	)		(5	) (a)
Net realized gains on investments		—			—			(147	)		—
Distributions to Class C Shareholders from:
Net investment income		(2,007	)		(19	) (a)		(7,117	)		(90	) (a)
Net realized gains on investments		—			—			(1,855	)		—
Distributions to Class D Shareholders from:
Net investment income		(5,518,021	)		(6,876,923	)		(4,979,167	)		(6,934,155	)
Net realized gains on investments		—			—			(3,527,208	)		(3,061,885	)
Distributions to Class R Shareholders from:
Net investment income		(41	)		(3	) (b)		(32	)		(3	) (b)
Net realized gains on investments		—			—			(24	)		—
Distributions to Class X Shareholders from:
Net investment income		(137,402	)		(157,316	)		(155,711	)		(195,511	)
Net realized gains on investments		—			—			(136,123	)		(106,430	)
Distributions to Class Y Shareholders from:
Net investment income		(9,770	)		(10,690	)		(40,922	)		(50,035	)
Net realized gains on investments		—			—			(46,030	)		(18,390	)
Distributions to Institutional Class Shareholders from:
Net Investment Income		(4,055	) (c)		—			(1,969	) (c)		—


Change in net assets from shareholder distributions		(6,123,078	)		(7,490,267	)		(12,122,696	)		(13,498,424	)


Change in net assets from capital transactions		(15,273,501	)		(9,530,494	)		(30,816,842	)		(10,824,892	)


Change in net assets		(14,143,981	)		(5,734,939	)		(35,870,372	)		(18,344,124	)
Net Assets:
Beginning of period		141,683,981			147,418,920			218,810,351			237,154,475


End of period	$	127,540,000		$	141,683,981		$	182,939,979		$	218,810,351

[Additional columns below]

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



	Gartmore Tax-Free
	Income Fund
	Year Ended			Year Ended
	October 31, 2004			October 31, 2003



FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income	$	8,493,509		$	9,145,088
Net realized gains (losses) on investment transactions		29,089			(260,643	)
Net change in unrealized appreciation/depreciation on investments		3,242,490			(117,813	)


Change in net assets from operations		11,765,088			8,766,632


Distributions to Class A Shareholders from:
Net investment income		(357,117	)		(309,159	)
Net realized gains on investments		—			—
Distributions to Class B Shareholders from:
Net investment income		(7,762	)		(9	) (a)
Net realized gains on investments		—			—
Distributions to Class C Shareholders from:
Net investment income		(24,323	)		(5	) (a)
Net realized gains on investments		—			—
Distributions to Class D Shareholders from:
Net investment income		(7,852,219	)		(8,569,910	)
Net realized gains on investments		—			—
Distributions to Class R Shareholders from:
Net investment income		—			—
Net realized gains on investments		—			—
Distributions to Class X Shareholders from:
Net investment income		(234,899	)		(245,325	)
Net realized gains on investments		—			—
Distributions to Class Y Shareholders from:
Net investment income		(17,189	)		(20,680	)
Net realized gains on investments		—			—
Distributions to Institutional Class Shareholders from:
Net Investment Income		—			—


Change in net assets from shareholder distributions		(8,493,509	)		(9,145,088	)


Change in net assets from capital transactions		(10,941,315	)		(9,565,227	)


Change in net assets		(7,669,736	)		(9,943,683	)
Net Assets:
Beginning of period		199,909,012			209,852,695


End of period	$	192,239,276		$	199,909,012


(a)		For the period from September 4, 2003 (commencement of operations) through October 31, 2003.
(b)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(c)		For the period from June 30, 2004 (commencement of operations) through October 31, 2004.

See notes to financial statements.

2004 Annual Report 133

Core Series


	Statements of Changes in Net Assets



	Gartmore						Gartmore Morley
	Money Market Fund						Enhanced Income 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	$	11,655,528		$	13,125,877		$	5,002,179		$	3,841,174
Net realized gains (losses) on investment transactions and futures		(951	)		771			(2,344,773	)		(302,885	)
Net change in unrealized appreciation/depreciation on investments and futures		—			—			(97,688	)		(2,101,594	)
Net change in unrealized appreciation/depreciation on wrapper contracts		—			—			—			—


Change in net assets from operations		11,654,577			13,126,648			2,559,718			1,436,695


Distributions to Class A Shareholders from:
Net investment income		—			—			(38,436	)		(66,894	)
Net realized gains on investments								—			—
Distributions to Class R Shareholders from:
Net investment income		—			—			(16	)		(2	) (b)
Distributions to Institutional Class Shareholders from:
Net investment income		(8,807,543	)		(8,441,031	)		(5,018,476	)		(3,542,314	)
Net realized gain on investments		—			—			—			—
Distributions to Institutional Service Class Shareholders from:
Net investment income		—			—			(152,442	)		(314,815	)
Distributions to IRA Class Shareholders from:
Net investment income		—			—			—			—
Net realized gain on investments
Distributions to Service Class Shareholders from:
Net investment income		(32,428	)		(534,990	)		—			—
Net realized gain on investments		—			—
Distributions to Prime Class Shareholders from:
Net investment income		(2,815,557	)		(4,238,813	)		—			—


Change in net assets from shareholder distributions		(11,655,528	)		(13,214,834	)		(5,209,370	)		(3,924,025	)


Change in net assets from share transactions		(73,315,619	)		(119,774,015	)		144,235,418			100,365,305


Change in net assets		(73,316,570	)		(119,862,201	)		141,585,766			97,877,975
Net Assets:
Beginning of period		1,693,650,235			1,813,512,436			167,364,677			69,486,702


End of period	$	1,620,333,665		$	1,693,650,235		$	308,950,443		$	167,364,677

[Additional columns below]

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



	Gartmore Morley
	Capital Accumulation Fund
	Year Ended			Year Ended
	October 31, 2004			October 31, 2003



FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income	$	18,697,863		$	12,081,257
Net realized gains (losses) on investment transactions and futures		(1,826,324	)		(409	)
Net change in unrealized appreciation/depreciation on investments and futures		1,372,707			(4,604,412	)
Net change in unrealized appreciation/depreciation on wrapper contracts		(550,681	)		4,002,639


Change in net assets from operations		17,693,565			11,479,075


Distributions to Class A Shareholders from:
Net investment income		(14,701	)		(518	) (a)
Net realized gains on investments		(190	)		—
Distributions to Class R Shareholders from:
Net investment income		—			—
Distributions to Institutional Class Shareholders from:
Net investment income		(2,052,609	)		(1,122,822	)
Net realized gain on investments		(46,583	)		—
Distributions to Institutional Service Class Shareholders from:
Net investment income		—			—
Distributions to IRA Class Shareholders from:
Net investment income		(10,365,445	)		(6,252,425	)
Net realized gain on investments		(289,512	)		—
Distributions to Service Class Shareholders from:
Net investment income		(5,233,773	)		(4,103,264	)
Net realized gain on investments		(145,883	)		—
Distributions to Prime Class Shareholders from:
Net investment income		—			—


Change in net assets from shareholder distributions		(18,148,696	)		(11,479,029	)


Change in net assets from share transactions		49,914,041			516,116,660


Change in net assets		49,458,910			516,116,706
Net Assets:
Beginning of period		658,036,034			141,919,328


End of period	$	707,494,944		$	658,036,034


(a)		For the period from July 16, 2003 (commencement of operations) through October 31, 2003.
(b)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.

See notes to financial statements.

134 Annual Report 2004

Financial Highlights

Selected Data for Each Share of Capital Outstanding

Gartmore Bond Fund



											Distributions
			Investment Activities
					Net Realized
					and
	Net Asset				Unrealized			Total
	Value,		Net		Gains			from			Net						Net Asset
	Beginning		Investment		(Losses) on			Investment			Investment			Total			Value, End		Total
	of Period		Income		Investments			Activities			Income			Distributions			of Period		Return (c)



Class A Shares
Year Ended October 31, 2000	$	9.07		0.57		(0.32	)		0.25			(0.57	)		(0.57	)	$	8.75		2.87%
Year Ended October 31, 2001	$	8.75		0.52		0.84			1.36			(0.53	)		(0.53	)	$	9.58		16.01%
Year Ended October 31, 2002	$	9.58		0.50		(0.15	)		0.35			(0.50	)		(0.50	)	$	9.43		3.84%
Year Ended October 31, 2003	$	9.43		0.46		0.24			0.70			(0.46	)		(0.46	)	$	9.67		7.55%
Year Ended October 31, 2004	$	9.67		0.43		0.08			0.51			(0.43	)		(0.43	)	$	9.75		5.37%
Class B Shares
Period Ended October 31, 2003 (d)	$	9.49		0.06		0.18			0.24			(0.06	)		(0.06	)	$	9.67		2.50%	(i)
Year Ended October 31, 2004	$	9.67		0.36		0.08			0.44			(0.36	)		(0.36	)	$	9.75		4.66%
Class C Shares
Period Ended October 31, 2003 (d)	$	9.50		0.06		0.18			0.24			(0.06	)		(0.06	)	$	9.68		2.49%	(i)
Year Ended October 31, 2004	$	9.68		0.36		0.08			0.44			(0.36	)		(0.36	)	$	9.76		4.63%
Class D Shares
Year Ended October 31, 2000	$	9.09		0.59		(0.33	)		0.26			(0.59	)		(0.59	)	$	8.76		2.97%
Year Ended October 31, 2001	$	8.76		0.54		0.84			1.38			(0.55	)		(0.55	)	$	9.59		16.23%
Year Ended October 31, 2002	$	9.59		0.52		(0.15	)		0.37			(0.52	)		(0.52	)	$	9.44		4.07%
Year Ended October 31, 2003	$	9.44		0.49		0.24			0.73			(0.49	)		(0.49	)	$	9.68		7.81%
Year Ended October 31, 2004	$	9.68		0.45		0.09			0.54			(0.45	)		(0.45	)	$	9.77		5.75%
Class R Shares
Period Ended October 31, 2003 (e)	$	9.80		0.03		(0.12	)		(0.09	)		(0.03	)		(0.03	)	$	9.68		(0.92%	) (i)
Year Ended October 31, 2004	$	9.68		0.39		0.09			0.48			(0.39	)		(0.39	)	$	9.77		5.06%
Class X Shares
Year Ended October 31, 2000	$	9.08		0.52		(0.33	)		0.19			(0.52	)		(0.52	)	$	8.75		2.15%
Year Ended October 31, 2001	$	8.75		0.47		0.84			1.31			(0.48	)		(0.48	)	$	9.58		15.33%
Year Ended October 31, 2002	$	9.58		0.45		(0.15	)		0.30			(0.45	)		(0.45	)	$	9.43		3.26%
Year Ended October 31, 2003 (f)	$	9.43		0.41		0.24			0.65			(0.41	)		(0.41	)	$	9.67		6.98%
Year Ended October 31, 2004	$	9.67		0.38		0.08			0.46			(0.38	)		(0.38	)	$	9.75		4.82%
Class Y Shares
Period Ended October 31, 2001 (g)	$	9.19		0.25		0.40			0.65			(0.25	)		(0.25	)	$	9.59		7.25%	(i)
Year Ended October 31, 2002	$	9.59		0.45		(0.15	)		0.30			(0.45	)		(0.45	)	$	9.44		3.26%
Year Ended October 31, 2003 (f)	$	9.44		0.41		0.24			0.65			(0.41	)		(0.41	)	$	9.68		6.97%
Year Ended October 31, 2004	$	9.68		0.38		0.08			0.46			(0.38	)		(0.38	)	$	9.76		4.81%
Institutional Shares
Period Ended October 31, 2004 (h)	$	9.50		0.15		0.26			0.41			(0.15	)		(0.15	)	$	9.76		4.32%	(i)

[Additional columns below]

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



	Ratios / Supplemental Data
											Ratio of
									Ratio of		Investment
						Ratio of Net			Expenses		Income
	Net Assets		Ratio of			Investment			(Prior to		(Prior to
	at End of		Expenses			Income			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	$	3,458		1.05%			6.42%			(k)		(k)		72.80%
Year Ended October 31, 2001	$	4,775		1.14%			5.71%			(k)		(k)		42.47%
Year Ended October 31, 2002	$	7,551		1.06%			5.34%			(k)		(k)		27.66%
Year Ended October 31, 2003	$	10,128		1.08%			4.74%			(k)		(k)		17.73%
Year Ended October 31, 2004	$	10,669		1.04%			4.38%			(k)		(k)		17.20%
Class B Shares
Period Ended October 31, 2003 (d)	$	24		1.83%	(j)		3.62%	(j)		(k)		(k)		17.73%
Year Ended October 31, 2004	$	102		1.72%			3.64%			(k)		(k)		17.20%
Class C Shares
Period Ended October 31, 2003 (d)	$	9		1.87%	(j)		3.60%	(j)		(k)		(k)		17.73%
Year Ended October 31, 2004	$	182		1.72%			3.48%			(k)		(k)		17.20%
Class D Shares
Year Ended October 31, 2000	$	108,413		0.83%			6.62%			(k)		(k)		72.80%
Year Ended October 31, 2001	$	132,034		0.92%			5.94%			(k)		(k)		42.47%
Year Ended October 31, 2002	$	136,049		0.83%			5.58%			(k)		(k)		27.66%
Year Ended October 31, 2003	$	127,591		0.82%			5.00%			(k)		(k)		17.73%
Year Ended October 31, 2004	$	112,631		0.78%			4.64%			(k)		(k)		17.20%
Class R Shares
Period Ended October 31, 2003 (e)	$	1		1.85%	(j)		3.48%	(j)		1.95%		3.38%		17.73%
Year Ended October 31, 2004	$	1		1.37%			3.99%			(k)		(k)		17.20%
Class X Shares
Year Ended October 31, 2000	$	1,707		1.64%			5.83%			(k)		(k)		72.80%
Year Ended October 31, 2001	$	2,935		1.72%			5.10%			(k)		(k)		42.47%
Year Ended October 31, 2002	$	3,548		1.62%			4.79%			(k)		(k)		27.66%
Year Ended October 31, 2003 (f)	$	3,674		1.60%			4.22%			(k)		(k)		17.73%
Year Ended October 31, 2004	$	3,457		1.57%			3.85%			(k)		(k)		17.20%
Class Y Shares
Period Ended October 31, 2001 (g)	$	162		1.74%	(j)		4.77%	(j)		(k)		(k)		42.47%
Year Ended October 31, 2002	$	272		1.62%			4.78%			(k)		(k)		27.66%
Year Ended October 31, 2003 (f)	$	256		1.60%			4.21%			(k)		(k)		17.73%
Year Ended October 31, 2004	$	238		1.57%			3.85%			(k)		(k)		17.20%
Institutional Shares
Period Ended October 31, 2004 (h)	$	260		0.73%	(j)		4.51%	(j)		(k)		(k)		17.20%


(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 September 4, 2003 (commencement of operations) through October 31, 2003.
(e)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(f)		Effective September 1, 2003, Class B and Class C were renamed Class X and Class Y, respectively.
(g)		For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(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 during the period.

See notes to financial statements.

2004 Annual Report 135


	Financial Highlights
	Selected Data for Each Share of Capital Outstanding

Core Series

Gartmore Government Bond Fund



			Investment Activities
					Net Realized
					and
	Net Asset				Unrealized			Total
	Value,		Net		Gains			from
	Beginning		Investment		(Losses) on			Investment
	of Period		Income		Investments			Activities



Class A Shares
Year Ended October 31, 2000	$	9.89		0.57		0.13			0.70
Year Ended October 31, 2001	$	10.00		0.53		0.95			1.48
Year Ended October 31, 2002	$	10.95		0.45		0.20			0.65
Year Ended October 31, 2003	$	10.95		0.41		(0.16	)		0.25
Year Ended October 31, 2004	$	10.61		0.35		0.03			0.38
Class B Shares
Period Ended October 31, 2003 (d)	$	10.48		0.06		0.12			0.18
Year Ended October 31, 2004	$	10.61		0.28		0.03			0.31
Class C Shares
Period Ended October 31, 2003 (d)	$	10.48		0.06		0.12			0.18
Year Ended October 31, 2004	$	10.61		0.28		0.03			0.31
Class D Shares
Year Ended October 31, 2000	$	9.89		0.59		0.14			0.73
Year Ended October 31, 2001	$	10.01		0.55		0.95			1.50
Year Ended October 31, 2002	$	10.96		0.48		0.19			0.67
Year Ended October 31, 2003	$	10.95		0.44		(0.15	)		0.29
Year Ended October 31, 2004	$	10.62		0.38		0.02			0.40
Class R Shares
Period Ended October 31, 2003 (e)	$	10.77		0.04		(0.16	)		(0.12	)
Year Ended October 31, 2004	$	10.62		0.32		0.03			0.35
Class X Shares
Year Ended October 31, 2000	$	9.89		0.51		0.13			0.64
Year Ended October 31, 2001	$	10.00		0.47		0.94			1.41
Year Ended October 31, 2002	$	10.94		0.40		0.19			0.59
Year Ended October 31, 2003 (f)	$	10.93		0.36		(0.14	)		0.22
Year Ended October 31, 2004	$	10.61		0.30		0.02			0.32
Class Y Shares
Period Ended October 31, 2001 (g)	$	10.47		0.24		0.47			0.71
Year Ended October 31, 2002	$	10.94		0.40		0.19			0.59
Year Ended October 31, 2003 (f)	$	10.93		0.36		(0.14	)		0.22
Year Ended October 31, 2004	$	10.61		0.30		0.02			0.32
Institutional Shares
Period Ended October 31, 2004 (h)	$	10.11		0.12		0.28			0.40

[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
Year Ended October 31, 2000		(0.57	)		(0.02	)		(0.59	)	$	10.00		7.40%
Year Ended October 31, 2001		(0.53	)		—			(0.53	)	$	10.95		15.21%
Year Ended October 31, 2002		(0.45	)		(0.20	)		(0.65	)	$	10.95		6.42%
Year Ended October 31, 2003		(0.40	)		(0.19	)		(0.59	)	$	10.61		2.29%
Year Ended October 31, 2004		(0.36	)		(0.26	)		(0.62	)	$	10.37		3.68%
Class B Shares
Period Ended October 31, 2003 (d)		(0.05	)		—			(0.05	)	$	10.61		1.73%	(i)
Year Ended October 31, 2004		(0.29	)		(0.26	)		(0.55	)	$	10.37		3.04%
Class C Shares
Period Ended October 31, 2003 (d)		(0.05	)		—			(0.05	)	$	10.61		1.73%	(i)
Year Ended October 31, 2004		(0.29	)		(0.26	)		(0.55	)	$	10.37		3.03%
Class D Shares
Year Ended October 31, 2000		(0.59	)		(0.02	)		(0.61	)	$	10.01		7.73%
Year Ended October 31, 2001		(0.55	)		—			(0.55	)	$	10.96		15.43%
Year Ended October 31, 2002		(0.48	)		(0.20	)		(0.68	)	$	10.95		6.61%
Year Ended October 31, 2003		(0.43	)		(0.19	)		(0.62	)	$	10.62		2.67%
Year Ended October 31, 2004		(0.39	)		(0.26	)		(0.65	)	$	10.37		3.87%
Class R Shares
Period Ended October 31, 2003 (e)		(0.03	)		—			(0.03	)	$	10.62		(1.12%	) (i)
Year Ended October 31, 2004		(0.33	)		(0.26	)		(0.59	)	$	10.38		3.41%
Class X Shares
Year Ended October 31, 2000		(0.51	)		(0.02	)		(0.53	)	$	10.00		6.72%
Year Ended October 31, 2001		(0.47	)		—			(0.47	)	$	10.94		14.41%
Year Ended October 31, 2002		(0.40	)		(0.20	)		(0.60	)	$	10.93		5.80%
Year Ended October 31, 2003 (f)		(0.35	)		(0.19	)		(0.54	)	$	10.61		2.00%
Year Ended October 31, 2004		(0.31	)		(0.26	)		(0.57	)	$	10.36		3.10%
Class Y Shares
Period Ended October 31, 2001 (g)		(0.24	)		—			(0.24	)	$	10.94		6.89%	(i)
Year Ended October 31, 2002		(0.40	)		(0.20	)		(0.60	)	$	10.93		5.80%
Year Ended October 31, 2003 (f)		(0.35	)		(0.19	)		(0.54	)	$	10.61		2.00%
Year Ended October 31, 2004		(0.31	)		(0.26	)		(0.57	)	$	10.36		3.10%
Institutional Shares
Period Ended October 31, 2004 (h)		(0.13	)		—			(0.13	)	$	10.38		4.00%	(i)

[Additional columns below]

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



	Ratios / Supplemental Data
												Ratio of
									Ratio of			Investment
						Ratio of Net			Expenses			Income
	Net Assets		Ratio of			Investment			(Prior to			(Prior to
	at End of		Expenses			Income			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	$	54,796		0.99%			5.84%			1.05%			5.78%			107.86%
Year Ended October 31, 2001	$	57,336		0.99%			5.12%			1.20%			4.91%			159.68%
Year Ended October 31, 2002	$	55,510		1.07%			4.28%			1.11%			4.24%			99.42%
Year Ended October 31, 2003	$	56,589		1.10%			3.76%			(k)			(k)			106.65%
Year Ended October 31, 2004	$	55,481		1.07%			3.37%			(k)			(k)			110.72%
Class B Shares
Period Ended October 31, 2003 (d)	$	1		1.80%	(j		) 3.52%	(j)		(k)			(k)			106.65%
Year Ended October 31, 2004	$	170		1.69%			2.75%			(k)			(k)			110.72%
Class C Shares
Period Ended October 31, 2003 (d)	$	65		1.76%	(j)		4.11%	(j)		(k)			(k)			106.65%
Year Ended October 31, 2004	$	296		1.69%			2.75%			(k)			(k)			110.72%
Class D Shares
Year Ended October 31, 2000	$	55,812		0.78%			6.03%			0.78%			6.03%			107.86%
Year Ended October 31, 2001	$	124,117		0.79%			5.24%			0.90%			5.13%			159.68%
Year Ended October 31, 2002	$	174,637		0.81%			4.52%			0.81%			4.52%			99.42%
Year Ended October 31, 2003	$	154,556		0.82%			4.03%			(k)			(k)			106.65%
Year Ended October 31, 2004	$	121,325		0.78%			3.66%			(k)			(k)			110.72%
Class R Shares
Period Ended October 31, 2003 (e)	$	1		1.48%	(j		) 4.13%	(j)		1.58%	(j)		4.03%	(j)		106.65%
Year Ended October 31, 2004	$	1		1.37%			3.12%			(k)			(k)			110.72%
Class X Shares
Year Ended October 31, 2000	$	1,129		1.63%			5.19%			1.63%			5.19%			107.86%
Year Ended October 31, 2001	$	4,024		1.64%			4.27%			1.68%			4.23%			159.68%
Year Ended October 31, 2002	$	6,067		1.58%			3.74%			1.58%			3.74%			99.42%
Year Ended October 31, 2003 (f)	$	5,689		1.57%			3.29%			(k)			(k)			106.65%
Year Ended October 31, 2004	$	4,557		1.54%			2.91%			(k)			(k)			110.72%
Class Y Shares
Period Ended October 31, 2001 (g)	$	449		1.64%	(j		) 4.20%	(j)		1.73%	(j)		4.11%	(j)		159.68%
Year Ended October 31, 2002	$	941		1.58%			3.72%			1.58%			3.72%			99.42%
Year Ended October 31, 2003 (f)	$	1,910		1.57%			3.28%			(k)			(k)			106.65%
Year Ended October 31, 2004	$	961		1.54%			2.93%			(k)			(k)			110.72%
Institutional Shares
Period Ended October 31, 2004 (h)	$	14		0.69%	(j		) 3.66%	(j)		(k)			(k)			110.72%


(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 September 4, 2003 (commencement of operations) through October 31, 2003.
(e)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(f)		Effective September 1, 2003, Class B and Class C shares were renamed Class X and Class Y shares, respectively.
(g)		For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(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 during the period.

See notes to financial statements.

136 Annual Report 2004

Gartmore Tax-Free Income Fund



			Investment Activities
					Net Realized
					and
	Net Asset				Unrealized			Total
	Value,		Net		Gains			from
	Beginning		Investment		(Losses) on			Investment
	of Period		Income		Investments			Activities



Class A Shares
Year Ended October 31, 2000	$	9.79		0.50		0.25			0.75
Year Ended October 31, 2001	$	10.04		0.46		0.49			0.95
Year Ended October 31, 2002	$	10.51		0.47		—			0.47
Year Ended October 31, 2003	$	10.51		0.44		(0.02	)		0.42
Year Ended October 31, 2004	$	10.49		0.43		0.18			0.61
Class B Shares
Period Ended October 31, 2003 (d)	$	10.28		0.06		0.20			0.26
Year Ended October 31, 2004	$	10.48		0.35		0.19			0.54
Class C Shares
Period Ended October 31, 2003 (d)	$	10.27		0.06		0.20			0.26
Year Ended October 31, 2004	$	10.47		0.36		0.17			0.53
Class D Shares
Year Ended October 31, 2000	$	9.78		0.53		0.25			0.78
Year Ended October 31, 2001	$	10.03		0.49		0.49			0.98
Year Ended October 31, 2002	$	10.50		0.49		0.01			0.50
Year Ended October 31, 2003	$	10.51		0.47		(0.02	)		0.45
Year Ended October 31, 2004	$	10.49		0.46		0.18			0.64
Class X Shares
Year Ended October 31, 2000	$	9.78		0.44		0.25			0.69
Year Ended October 31, 2001	$	10.03		0.40		0.49			0.89
Year Ended October 31, 2002	$	10.50		0.40		0.01			0.41
Year Ended October 31, 2003 (e)	$	10.51		0.38		(0.02	)		0.36
Year Ended October 31, 2004	$	10.49		0.37		0.18			0.55
Class Y Shares
Period Ended October 31, 2001 (f)	$	10.32		0.22		0.16			0.38
Year Ended October 31, 2002	$	10.48		0.41		—			0.41
Year Ended October 31, 2003 (e)	$	10.49		0.39		(0.03	)		0.36
Year Ended October 31, 2004	$	10.47		0.38		0.17			0.55

[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
Year Ended October 31, 2000		(0.50	)		(0.50	)	$	10.04		7.90%
Year Ended October 31, 2001		(0.48	)		(0.48	)	$	10.51		9.70%
Year Ended October 31, 2002		(0.47	)		(0.47	)	$	10.51		4.57%
Year Ended October 31, 2003		(0.44	)		(0.44	)	$	10.49		4.09%
Year Ended October 31, 2004		(0.43	)		(0.43	)	$	10.67		5.97%
Class B Shares
Period Ended October 31, 2003 (d)		(0.06	)		(0.06	)	$	10.48		2.48%	(g)
Year Ended October 31, 2004		(0.35	)		(0.35	)	$	10.67		5.28%
Class C Shares
Period Ended October 31, 2003 (d)		(0.06	)		(0.06	)	$	10.47		2.48%	(g)
Year Ended October 31, 2004		(0.36	)		(0.36	)	$	10.64		5.12%
Class D Shares
Year Ended October 31, 2000		(0.53	)		(0.53	)	$	10.03		8.18%
Year Ended October 31, 2001		(0.51	)		(0.51	)	$	10.50		9.99%
Year Ended October 31, 2002		(0.49	)		(0.49	)	$	10.51		4.94%
Year Ended October 31, 2003		(0.47	)		(0.47	)	$	10.49		4.36%
Year Ended October 31, 2004		(0.46	)		(0.46	)	$	10.67		6.23%
Class X Shares
Year Ended October 31, 2000		(0.44	)		(0.44	)	$	10.03		7.27%
Year Ended October 31, 2001		(0.42	)		(0.42	)	$	10.50		9.06%
Year Ended October 31, 2002		(0.40	)		(0.40	)	$	10.51		4.05%
Year Ended October 31, 2003 (e)		(0.38	)		(0.38	)	$	10.49		3.48%
Year Ended October 31, 2004		(0.37	)		(0.37	)	$	10.67		5.34%
Class Y Shares
Period Ended October 31, 2001 (f)		(0.22	)		(0.22	)	$	10.48		3.73%	(g)
Year Ended October 31, 2002		(0.40	)		(0.40	)	$	10.49		4.06%
Year Ended October 31, 2003 (e)		(0.38	)		(0.38	)	$	10.47		3.49%
Year Ended October 31, 2004		(0.37	)		(0.37	)	$	10.65		5.35%

[Additional columns below]

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



	Ratios / Supplemental Data
											Ratio of
									Ratio of		Investment
						Ratio of Net			Expenses		Income
	Net Assets		Ratio of			Investment			(Prior to		(Prior to
	at End of		Expenses			Income			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	$	3,792		0.94%			5.09%			(i)		(i)		7.08%
Year Ended October 31, 2001	$	5,837		1.00%			4.56%			(i)		(i)		7.29%
Year Ended October 31, 2002	$	7,586		0.99%			4.48%			(i)		(i)		27.77%
Year Ended October 31, 2003	$	7,580		0.98%			4.20%			(i)		(i)		16.91%
Year Ended October 31, 2004	$	9,599		0.93%			4.10%			(i)		(i)		0.00%
Class B Shares
Period Ended October 31, 2003 (d)	$	41		1.72%	(h)		3.54%	(h)		(i)		(i)		16.91%
Year Ended October 31, 2004	$	370		1.68%			3.36%			(i)		(i)		0.00%
Class C Shares
Period Ended October 31, 2003 (d)	$	1		1.72%	(h)		3.65%	(h)		(i)		(i)		16.91%
Year Ended October 31, 2004	$	984		1.66%			3.32%			(i)		(i)		0.00%
Class D Shares
Year Ended October 31, 2000	$	204,337		0.70%			5.35%			0.70%		5.35%		7.08%
Year Ended October 31, 2001	$	202,942		0.75%			4.82%			(i)		(i)		7.29%
Year Ended October 31, 2002	$	195,601		0.73%			4.74%			(i)		(i)		27.77%
Year Ended October 31, 2003	$	184,774		0.72%			4.47%			(i)		(i)		16.91%
Year Ended October 31, 2004	$	174,451		0.68%			4.35%			(i)		(i)		0.00%
Class X Shares
Year Ended October 31, 2000	$	4,601		1.55%			4.50%			(i)		(i)		7.08%
Year Ended October 31, 2001	$	5,592		1.60%			3.96%			(i)		(i)		7.29%
Year Ended October 31, 2002	$	6,445		1.58%			3.88%			(i)		(i)		27.77%
Year Ended October 31, 2003 (e)	$	6,861		1.57%			3.61%			(i)		(i)		16.91%
Year Ended October 31, 2004	$	6,342		1.53%			3.50%			(i)		(i)		0.00%
Class Y Shares
Period Ended October 31, 2001 (f)	$	115		1.62%	(h)		3.98%	(h)		(i)		(i)		7.29%
Year Ended October 31, 2002	$	221		1.59%			3.87%			(i)		(i)		27.77%
Year Ended October 31, 2003 (e)	$	652		1.57%			3.61%			(i)		(i)		16.91%
Year Ended October 31, 2004	$	493		1.54%			3.51%			(i)		(i)		0.00%


(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 September 4, 2003 (commencement of operations) through October 31, 2003.
(e)		Effective September 1, 2003, Class B and Class C shares were renamed Class X and Class Y shares, respectively.
(f)		For the period from March 1, 2001 (commencement of operations) through October 31, 2001.
(g)		Not annualized.
(h)		Annualized.
(i)		There were no fee reductions during the period.

See notes to financial statements.

2004 Annual Report 137


	Financial Highlights
	Selected Data for Each Share of Capital Outstanding

Core Series

Gartmore Money Market Fund



			Investment Activities
	Net Asset				Total
	Value,		Net		from
	Beginning		Investment		Investment
	of Period		Income		Activities



Institutional Class Shares
Period Ended October 31, 2002 (b)	$	1.00		0.01		0.01
Year Ended October 31, 2003	$	1.00		0.01		0.01
Year Ended October 31, 2004	$	1.00		0.01		0.01
Service Class Shares
Year Ended October 31, 2000	$	1.00		0.06		0.06
Year Ended October 31, 2001	$	1.00		0.04		0.04
Year Ended October 31, 2002	$	1.00		0.01		0.01
Year Ended October 31, 2003	$	1.00		0.01		0.01
Year Ended October 31, 2004	$	1.00		0.01		0.01
Prime Shares
Year Ended October 31, 2000	$	1.00		0.06		0.06
Year Ended October 31, 2001	$	1.00		0.04		0.04
Year Ended October 31, 2002	$	1.00		0.01		0.01
Year Ended October 31, 2003	$	1.00		0.01		0.01
Year Ended October 31, 2004	$	1.00		0.01		0.01

[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



Institutional Class Shares
Period Ended October 31, 2002 (b)		(0.01	)		(0.01	)	$	1.00		1.12%	(d)
Year Ended October 31, 2003		(0.01	)		(0.01	)	$	1.00		0.77%
Year Ended October 31, 2004		(0.01	)		(0.01	)	$	1.00		0.73%
Service Class Shares
Year Ended October 31, 2000		(0.06	)		(0.06	)	$	1.00		5.64%
Year Ended October 31, 2001		(0.04	)		(0.04	)	$	1.00		4.15%
Year Ended October 31, 2002		(0.01	)		(0.01	)	$	1.00		1.11%
Year Ended October 31, 2003		(0.01	)		(0.01	)	$	1.00		0.59%
Year Ended October 31, 2004		(0.01	)		(0.01	)	$	1.00		0.52%
Prime Shares
Year Ended October 31, 2000		(0.06	)		(0.06	)	$	1.00		5.74%
Year Ended October 31, 2001		(0.04	)		(0.04	)	$	1.00		4.22%
Year Ended October 31, 2002		(0.01	)		(0.01	)	$	1.00		1.23%
Year Ended October 31, 2003		(0.01	)		(0.01	)	$	1.00		0.69%
Year Ended October 31, 2004		(0.01	)		(0.01	)	$	1.00		0.67%

[Additional columns below]

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



	Ratios/Supplemental Data
												Ratio of Net
									Ratio of			Investment
						Ratio of Net			Expenses			Income
	Net Assets		Ratio of			Investment			(Prior to			(Prior to
	at End of		Expenses			Income			Reimbursements)			Reimbursements)
	Period		to Average			to Average			to Average			to Average
	(000s)		Net Assets			Net Assets			Net Assets (a)			Net Assets (a)



Institutional Class Shares
Period Ended October 31, 2002 (b)	$	8,606		0.59%	(e)		1.25%	(e)		(c	)		(c	)
Year Ended October 31, 2003	$	1,214,406		0.56%			0.73%			(c	)		(c	)
Year Ended October 31, 2004	$	1,219,343		0.54%			0.73%			(c	)		(c	)
Service Class Shares
Year Ended October 31, 2000	$	256,221		0.75%			5.68%			0.86	%		5.57	%
Year Ended October 31, 2001	$	440,874		0.75%			3.85%			0.91	%		3.69	%
Year Ended October 31, 2002	$	627,365		0.80%			1.09%			0.96	%		0.93	%
Year Ended October 31, 2003	$	8,473		0.75%			0.89%			0.92	%		0.72	%
Year Ended October 31, 2004	$	5,952		0.75%			0.51%			0.78	%		0.48	%
Prime Shares
Year Ended October 31, 2000	$	1,241,194		0.65%			5.58%			0.65	%		5.58	%
Year Ended October 31, 2001	$	1,385,774		0.68%			4.10%			(c	)		(c	)
Year Ended October 31, 2002	$	1,177,541		0.70%			1.22%			(c	)		(c	)
Year Ended October 31, 2003	$	470,771		0.64%			0.73%			(c	)		(c	)
Year Ended October 31, 2004	$	395,038		0.60%			0.66%			(c	)		(c	)


(a)		During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(b)		For the period from December 13, 2001 (commencement of operations) through October 31, 2002.
(c)		There were no fee reductions in this period.
(d)		Not annualized.
(e)		Annualized.

See notes to financial statements.

138 Annual Report 2004

Gartmore Morley Enhanced Income Fund



			Investment Activities
					Net Realized
					and
	Net Asset				Unrealized			Total
	Value,		Net		Gains			from
	Beginning of		Investment		(Losses) on			Investment
	Period		Income		Investments			Activities



Class A Shares
Period Ended October 31, 2000 (d)	$	10.00		0.48		(0.10	)		0.38
Year Ended October 31, 2001	$	9.90		0.52		(0.20	)		0.32
Year Ended October 31, 2002	$	9.70		0.41		(0.26	)		0.15
Year Ended October 31, 2003	$	9.44		0.30		(0.18	)		0.12
Year Ended October 31, 2004	$	9.26		0.16		(0.09	)		0.07
Class R Shares
Period Ended October 31, 2003 (e)	$	9.30		0.02		(0.03	)		(0.01	)
Year Ended October 31, 2004	$	9.27		0.13		(0.09	)		0.04
Institutional Class Shares
Period Ended October 31, 2000 (d)	$	10.00		0.51		(0.11	)		0.40
Year Ended October 31, 2001	$	9.89		0.56		(0.19	)		0.37
Year Ended October 31, 2002	$	9.70		0.45		(0.26	)		0.19
Year Ended October 31, 2003	$	9.44		0.33		(0.18	)		0.15
Year Ended October 31, 2004	$	9.26		0.19		(0.08	)		0.11
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	10.00		0.49		(0.10	)		0.39
Year Ended October 31, 2001	$	9.90		0.54		(0.19	)		0.35
Year Ended October 31, 2002	$	9.71		0.42		(0.27	)		0.15
Year Ended October 31, 2003	$	9.44		0.31		(0.17	)		0.14
Year Ended October 31, 2004	$	9.27		0.17		(0.09	)		0.08

[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)		(0.48	)		(0.48	)	$	9.90		3.86%	(f)
Year Ended October 31, 2001		(0.52	)		(0.52	)	$	9.70		3.26%
Year Ended October 31, 2002		(0.41	)		(0.41	)	$	9.44		1.60%
Year Ended October 31, 2003		(0.30	)		(0.30	)	$	9.26		1.31%
Year Ended October 31, 2004		(0.17	)		(0.17	)	$	9.16		0.73%
Class R Shares
Period Ended October 31, 2003 (e)		(0.02	)		(0.02	)	$	9.27		(0.13%	) (f)
Year Ended October 31, 2004		(0.14	)		(0.14	)	$	9.17		0.48%
Institutional Class Shares
Period Ended October 31, 2000 (d)		(0.51	)		(0.51	)	$	9.89		4.16%	(f)
Year Ended October 31, 2001		(0.56	)		(0.56	)	$	9.70		3.83%
Year Ended October 31, 2002		(0.45	)		(0.45	)	$	9.44		1.96%
Year Ended October 31, 2003		(0.33	)		(0.33	)	$	9.26		1.64%
Year Ended October 31, 2004		(0.20	)		(0.20	)	$	9.17		1.07%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)		(0.49	)		(0.49	)	$	9.90		4.02%	(f)
Year Ended October 31, 2001		(0.54	)		(0.54	)	$	9.71		3.57%
Year Ended October 31, 2002		(0.42	)		(0.42	)	$	9.44		1.60%
Year Ended October 31, 2003		(0.31	)		(0.31	)	$	9.27		1.50%
Year Ended October 31, 2004		(0.18	)		(0.18	)	$	9.17		0.82%

[Additional columns below]

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



	Ratios / Supplemental Data
												Ratio of Net
									Ratio of			Investment
						Ratio of Net			Expenses			Income
	Net Assets		Ratio of			Investment			(Prior to			(Prior to
	at End of		Expenses			Income			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)	$	368		0.90%	(g)		5.90%	(g)		2.63%	(g)		4.17%	(g)		4.42%
Year Ended October 31, 2001	$	629		0.90%			5.18%			1.51%			4.57%			46.50%
Year Ended October 31, 2002	$	1,691		0.79%			4.28%			0.95%			4.12%			32.97%
Year Ended October 31, 2003	$	2,404		0.78%			3.11%			0.88%			3.01%			29.97%
Year Ended October 31, 2004	$	1,575		0.80%			1.74%			0.85%			1.69%			51.59%
Class R Shares
Period Ended October 31, 2003 (e)	$	1		1.05%	(g)		2.01%	(g)		1.15%	(g)		1.91%	(g)		29.97%
Year Ended October 31, 2004	$	1		1.00%			1.49%			1.00%			1.49%			51.59%
Institutional Class Shares
Period Ended October 31, 2000 (d)	$	497		0.45%	(g)		6.44%	(g)		2.13%	(g)		4.76%	(g)		4.42%
Year Ended October 31, 2001	$	10,144		0.45%			5.39%			0.98%			4.86%			46.50%
Year Ended October 31, 2002	$	57,703		0.45%			4.57%			0.64%			4.38%			32.97%
Year Ended October 31, 2003	$	155,704		0.45%			3.40%			0.55%			3.30%			29.97%
Year Ended October 31, 2004	$	299,898		0.45%			2.05%			0.50%			2.00%			51.59%
Institutional Service Class Shares
Period Ended October 31, 2000 (d)	$	11,614		0.70%	(g)		5.96%	(g)		1.73%	(g)		4.93%	(g)		4.42%
Year Ended October 31, 2001	$	11,593		0.70%			5.45%			1.44%			4.71%			46.50%
Year Ended October 31, 2002	$	10,093		0.70%			4.41%			0.90%			4.21%			32.97%
Year Ended October 31, 2003	$	9,256		0.70%			3.25%			0.80%			3.15%			29.97%
Year Ended October 31, 2004	$	7,476		0.70%			1.84%			0.75%			1.79%			51.59%


(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 29, 1999 (commencement of operations) through October 31, 2000.
(e)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(f)		Not annualized.
(g)		Annualized.

See notes to financial statements.

2004 Annual Report 139


	Financial Highlights
	Selected Data for Each Share of Capital Outstanding

Core Series

Gartmore Morley Capital Accumulation 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, 2003 (d)	$	10.00		0.08		—			0.08
Year Ended October 31, 2004	$	10.00		0.23		(0.07	)		0.16
Institutional Class Shares
Year Ended October 31, 2000	$	10.00		0.57		0.01			0.58
Year Ended October 31, 2001	$	10.00		0.59		—			0.59
Year Ended October 31, 2002	$	10.00		0.47		—			0.47
Year Ended October 31, 2003	$	10.00		0.34		—			0.34
Year Ended October 31, 2004	$	10.00		0.27		(0.07	)		0.20
IRA Class Shares
Year Ended October 31, 2000	$	10.00		0.53		0.01			0.54
Year Ended October 31, 2001	$	10.00		0.55		—			0.55
Year Ended October 31, 2002	$	10.00		0.43		—			0.43
Year Ended October 31, 2003	$	10.00		0.29		0.01			0.30
Year Ended October 31, 2004	$	10.00		0.23		(0.07	)		0.16
Service Class Shares
Year Ended October 31, 2000	$	10.00		0.53		0.01			0.54
Year Ended October 31, 2001	$	10.00		0.55		—			0.55
Year Ended October 31, 2002	$	10.00		0.44		—			0.44
Year Ended October 31, 2003	$	10.00		0.30		—			0.30
Year Ended October 31, 2004	$	10.00		0.22		(0.07	)		0.15

[Additional columns below]

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



	Distributions
													Capital		Net Asset
	Net												Contributions		Value, End of
	Investment			Net Realized			Total			Reverse			from		Period		Total
	Income			Gains			Distributions			Stock Split			Adviser		(000’s)		Return (a)



Class A Shares
Period Ended October 31, 2003 (d)		(0.08	)		—			(0.08	)		—			—	$	10.00		0.76%	(e)
Year Ended October 31, 2004		(0.23	)		(0.01	)		(0.24	)		0.01 (	h)		0.07	$	10.00		2.35%	(i)
Institutional Class Shares
Year Ended October 31, 2000		(0.58	)		—			(0.58	)		—			—	$	10.00		5.93%
Year Ended October 31, 2001		(0.59	)		—			(0.59	)		—			—	$	10.00		6.06%
Year Ended October 31, 2002		(0.47	)		(0.04	)		(0.51	)		0.04 (	g)		—	$	10.00		4.84%
Year Ended October 31, 2003		(0.34	)		—			(0.34	)		—			—	$	10.00		3.41%
Year Ended October 31, 2004		(0.27	)		(0.01	)		(0.28	)		0.01 (	h)		0.07	$	10.00		2.69%	(j)
IRA Class Shares
Year Ended October 31, 2000		(0.54	)		—			(0.54	)		—			—	$	10.00		5.51%
Year Ended October 31, 2001		(0.55	)		—			(0.55	)		—			—	$	10.00		5.64%
Year Ended October 31, 2002		(0.43	)		(0.04	)		(0.47	)		0.04 (	g)		—	$	10.00		4.41%
Year Ended October 31, 2003		(0.30	)		—			(0.30	)		—			—	$	10.00		2.99%
Year Ended October 31, 2004		(0.23	)		(0.01	)		(0.24	)		0.01 (	h)		0.07	$	10.00		2.30%	(k)
Service Class Shares
Year Ended October 31, 2000		(0.54	)		—			(0.54	)		—			—	$	10.00		5.52%
Year Ended October 31, 2001		(0.55	)		—			(0.55	)		—			—	$	10.00		5.64%
Year Ended October 31, 2002		(0.44	)		(0.04	)		(0.48	)		0.04 (	g)		—	$	10.00		4.44%
Year Ended October 31, 2003		(0.30	)		—			(0.30	)		—			—	$	10.00		3.05%
Year Ended October 31, 2004		(0.22	)		(0.01	)		(0.23	)		0.01 (	h)		0.07	$	10.00		2.26%	(l)

[Additional columns below]

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



	Ratios/Supplemental Data
												Ratio of Net
									Ratio of			Investment
						Ratio of Net			Expenses			Income
			Ratio of			Investment			(Prior to			(Prior to
	Net Assets at		Expenses to			Income to			Reimbursements)			Reimbursements)
	End of		Average Net			Average Net			to Average			to Average			Portfolio
	Period (000s)		Assets			Assets			Net Assets (b)			Net Assets (a)			Turnover (c)



Class A Shares
Period Ended October 31, 2003 (d)	$	42		0.95%	(f)		2.68%	(f)		1.05%	(f)		2.58%	(f)		16.61%
Year Ended October 31, 2004	$	1,585		0.86%			2.08%			0.96%			1.98%			129.96%
Institutional Class Shares
Year Ended October 31, 2000	$	8,973		0.55%			5.85%			1.47%			4.93%			28.30%
Year Ended October 31, 2001	$	15,531		0.55%			5.83%			0.83%			5.55%			59.67%
Year Ended October 31, 2002	$	19,239		0.57%			4.73%			0.71%			4.69%			37.37%
Year Ended October 31, 2003	$	47,491		0.60%			3.40%			0.70%			3.30%			16.61%
Year Ended October 31, 2004	$	72,996		0.54%			2.63%			0.64%			2.53%			129.96%
IRA Class Shares
Year Ended October 31, 2000	$	1,867		0.95%			5.38%			1.81%			4.52%			28.30%
Year Ended October 31, 2001	$	2,073		0.95%			5.46%			1.19%			5.22%			59.67%
Year Ended October 31, 2002	$	38,001		1.01%			4.00%			1.11%			4.00%			37.37%
Year Ended October 31, 2003	$	413,934		1.01%			2.90%			1.11%			2.80%			16.61%
Year Ended October 31, 2004	$	369,014		0.91%			2.29%			1.01%			2.19%			129.96%
Service Class Shares
Year Ended October 31, 2000	$	8,820		0.95%			5.51%			1.80%			4.66%			28.30%
Year Ended October 31, 2001	$	24,871		0.95%			5.45%			1.23%			5.17%			59.67%
Year Ended October 31, 2002	$	84,679		0.96%			4.23%			1.08%			4.21%			37.37%
Year Ended October 31, 2003	$	196,569		0.95%			3.06%			1.05%			2.96%			16.61%
Year Ended October 31, 2004	$	263,900		0.97%			2.20%			1.07%			2.10%			129.96%


(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 July 16, 2003 (commencement of operations) through October 31, 2003.
(e)		Not annualized.
(f)		Annualized.
(g)		Per share numbers prior to December 31, 2001 have been adjusted to reflect a 1.003633 for 1 reverse stock split.
(h)		Per share numbers prior to April 16, 2004 have been adjusted to reflect a 1.00620 for 1 reverse stock split.
(i)		The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.63%. See footnote 3(i).
(j)		The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.97%. See footnote 3(i).
(k)		The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.58%. See footnote 3(i).
(l)		The total return includes a contribution from adviser. If that contribution had not taken place, the total return would have been 1.54%. See footnote 3(i).

See notes to financial statements.

140 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 16 funds listed below (individually a “Fund,” collectively the “Funds”):


	-	Gartmore Growth Fund (“Growth”)
	-	Gartmore Large Cap Value Fund (“Large Cap Value”)
	-	Gartmore Nationwide Fund (“Nationwide”)
	-	Gartmore Mid Cap Growth Fund (“Mid Cap Growth”)
	-	Gartmore Small Cap Fund (“Small Cap”) (formerly Nationwide Small Cap Fund)
	-	Gartmore Investor Destinations Aggressive Fund (“Aggressive”)
	-	Gartmore Investor Destinations Moderately Aggressive Fund (“Moderately Aggressive”)
	-	Gartmore Investor Destinations Moderate Fund (“Moderate”)
	-	Gartmore Investor Destinations Moderately Conservative Fund (“Moderately Conservative”)
	-	Gartmore Investor Destinations Conservative Fund (“Conservative”)
	-	Gartmore Bond Fund (“Bond”)
	-	Gartmore Government Bond Fund (“Government Bond”)
	-	Gartmore Tax-Free Income Fund (“Tax-Free Income”)
	-	Gartmore Money Market Fund (“Money Market”)
	-	Gartmore Morley Enhanced Income Fund (“Morley Enhanced Income”)
	-	Gartmore Morley Capital Accumulation Fund (“Morley Capital Accumulation”)

The Aggressive, Moderately Aggressive, Moderate, Moderately Conservative and Conservative Funds (collectively, the “Investor Destinations Funds”) are constructed as “fund of funds” which means that these Funds pursue their investment objectives primarily by allocating their investments among other mutual funds (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities. The Investor Destinations Funds, except for the Aggressive Fund, may also invest in a non-registered Fixed Interest Contract issued by Nationwide Life Insurance Company (“Fixed Interest Contract”) up to each Fund’s designated limit.

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. Based on experience, however, 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. Nationwide Large Cap Growth Fund Reorganization

The Trust entered an agreement and plan of reorganization (“the Nationwide Large Cap Growth Fund Reorganization”) on behalf of the Nationwide Large Cap Growth Fund (the “Large Cap Growth Fund”) and the Growth Fund, that provides for the acquisition by the Growth Fund of all of the assets, subject to stated liabilities, of the Large Cap Growth Fund, in exchange for Class A, Class B, Class C and Institutional Service Class shares of the Growth Fund, the distribution of such shares to the shareholders of the Large Cap Growth Fund and the dissolution of the Large Cap Growth Fund. The Nationwide Large Cap Growth Fund Reorganization, which qualified as a tax-free exchange for

2004 Annual Report 141


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series

Federal income tax purposes, was completed on December 21, 2003 following approval by shareholders of Large Cap Growth Fund at a special shareholder meeting. The following is a summary of shares outstanding, net assets, net asset value per share issued and unrealized appreciation immediately before and after the Nationwide Large Cap Growth Fund Reorganization:


								After
		Before Reorganization						Reorganization

		Nationwide			Gartmore			Gartmore
		Large Cap Growth Fund			Growth Fund			Growth Fund


Shares*			3,393,729			53,273,719			57,915,856

Net assets		$	27,802,691		$	324,580,837		$	352,383,528

Net asset value:
	Class A		8.22			6.02			6.02
	Class B		7.87			5.59			5.59
	Class C		7.87			5.60			5.60
	Class D		—			6.10			6.10
	Class R		—			6.09			6.09
	Institutional Service Class		—			6.11			6.11

Unrealized appreciation (depreciation)			2,323,026			34,205,248			36,528,274

Accumulated net realized loss			(23,742,357	)		(297,064,522	)		(320,806,879	)


*	The share amounts after reorganization, reflected above, contain adjustments required to maintain the net asset value of the acquiring fund.

3. 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.


(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,

142 Annual Report 2004


	(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.

	Investments of the Money Market Fund are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant (straightline) basis to the maturity of the security.

	Shares of the Underlying Funds in which the Investor Destinations Funds invest are valued at their respective net asset values as reported by the Underlying Funds. The securities in the Underlying Funds are generally valued as of the close of business of the regular session of trading on the New York Stock Exchange. Underlying Funds generally value securities and assets at fair market value. Under most circumstances, the fixed interest contract is valued at par value each day, which is deemed to be fair value. The par value is calculated each day by the summation of the following factors: prior day’s par value; prior day’s interest accrued (par multiplied by guaranteed fixed rate); and current day net purchase or redemption.

	Prior to October 4, 2004, the wrap contracts purchased and held by the Gartmore Morley Capital Accumulation Fund were valued in accordance with policies and procedures established and adopted by the Board of Trustees which the Board believed accurately reflected the value of such Fund’s wrap contracts in accordance with the procedures of the Board. [During the time prior to October 4, 2004, other fair and reasonable valuation methodologies were permitted to be utilized in certain circumstances including, but not limited to: (1) default by a wrap provider under a wrap contract or other agreement; (2) insolvency of a wrap provider; (3) reduction of the credit rating of a wrap provider; or (4) any other situation in which the Board of Trustees, or its delegate, may have determined that a wrap provider would no longer have been able to satisfy its obligations under a wrap contract. In any such case, the fair value of any wrap contract may have been determined to be less than the difference between book value and the market value of covered assets. In these situations the Morley Capital Accumulation Fund would have experienced variability in its NAV per share.] Beginning on October 4, 2004, through December 5, 2004, the Fund valued its securities using the amortized cost methodology in seeking to continue to maintain a stable NAV of $10.00 per share without the use of wrap contracts to stabilize the NAV. On December 6, 2004, upon the Fund’s change to a short

2004 Annual Report 143


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series


	duration bond fund with a fluctuating NAV, the Fund commenced valuation of its securities using the Fund’s valuation procedures.


(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. 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)	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 of the underlying assets. A gain or loss equal to the daily variation margin is recognized on a daily basis. Future 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, the Funds 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 of the underlying hedged assets.


(d)	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. Interest income for the fixed contract is accrued daily and reinvested the following day.


(e)	Securities Lending

To generate additional income, each of the Funds, with the exception of the Money Market Fund, 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

144 Annual Report 2004

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. JP Morgan 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


Commercial Paper		AJAX Bambino Funding Ltd.	$	8,786,531		1.90	%		11/18/04

Funding Agreement		GE Life and Annuity		5,500,000		1.97	%		11/15/04

Master Note — Floating		CDC Financial Product Inc.		11,000,000		1.98	%		11/01/04

Master Note — Floating		Goldman Sachs Group LP		4,000,000		2.06	%		11/01/04

Medium Term Note — Fixed		Concord Minutemen C.C. LLC		9,202,236		1.86	%		11/09/04

Medium Term Note — Floating		Countrywide Home Loans Inc.		10,011,233		1.84	%		11/23/04

Medium Term Note — Floating		Pacific Life Global Funding		9,996,052		2.18	%		01/26/05

Money Market Fund		JPM S/ L Collateral Investment		2,600,000		1.81	%		11/01/04

Repurchase Agreement		Barclays Capital		30,246,709		1.91	%		11/01/04

Yankee Certificates of Deposit — Floating		RABOBANK, New York		9,993,998		1.88	%		11/01/04

Yankee Certificates of Deposit — Floating		Societe Generale, New York		2,999,579		1.82	%		11/01/04


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


	Market Value
	of Loaned		Market Value
Fund	Securities		of Collateral*


Growth	$	9,904,917	$	10,149,468

Large Cap Value		324,902		338,250

Nationwide		69,978,879		70,993,578

Small Cap		5,880,534		6,036,533

Bond		16,309,036		16,531,503

Government Bond		20,775,091		21,190,593

Morley Enhanced Income		10,337,799		10,546,222


	*	Includes securities and cash collateral


(f)	Distributions to Shareholders

Net investment income, if any, is declared and paid quarterly for the Growth, Large Cap Value, Nationwide, Mid Cap Growth, Small Cap, and Investor Destinations Funds and is declared daily and paid monthly 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 excesses are reported as distributions of paid-in-capital.


(g)	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.

2004 Annual Report 145


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series


(h)	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.


(i)	Wrap Contract—Morley Capital Accumulation (Renamed Gartmore Short Duration Bond Fund)


	The following describes the wrap contracts that were utilized by the Fund until October 4, 2004.

	A “wrap contract” is a contract between the Fund and a financial institution, usually a bank or an insurance company. There is no active trading market for wrap contracts and none is expected to develop; therefore, these wrap contracts are considered illiquid. In connection with its investment objective, seeking to maintain a stable net asset value per share, the Morley Capital Accumulation Fund had entered into book value maintenance contracts “wrap contracts” with the following institutions: Bank of America, N.A., Transamerica Life Insurance and Annuity Company, and Royal Bank of Canada (collectively the “wrap providers”). The wrap contracts obligated the wrap providers to make payments to the Fund in specified circumstances and were intended to enable the Fund, under most circumstances, to maintain its net asset value at $10.00 per share.

	The value of the wrap contracts of the Morley Capital Accumulation Fund varied inversely with the value of the Fund’s assets that were covered by the contracts (“covered assets”). When the market value of covered assets fell below “book value” (essentially the purchase price of covered assets plus interest on the assets accrued at the crediting rate specified under the wrap contracts), the wrap contracts were assets of the Fund with a value equal to the difference between the book and market values. Similarly, when the market value of covered assets was greater than the assets’ book value, the wrap contracts became a liability of the Fund equal to the amount by which the market value of covered assets exceeded the assets’ book value. In this manner, under normal conditions, wrap contracts were expected to, and did reduce the impact of interest rate risk on covered assets and, hence, the market price variability of the Morley Capital Accumulation Fund.

	The Securities and Exchange Commission (“SEC”) had inquired into the valuation methodology utilized for the wrap agreements by the Fund and other registered stable value funds in the industry. As of the date of the annual report, the SEC had rendered no definitive conclusions regarding the valuation of the wrap contracts. However, if any governmental or self-regulatory authority had determined that it was not appropriate to continue to value wrap contracts as the difference between the market value of the Fund’s covered assets and their book value, the Fund may not have been able to maintain a stable net asset value. Concern had continued to increase that the SEC may have determined that the valuation methodology being utilized by registered stable value funds, including the Fund up until October 4, 2004, for fair valuing wrap contracts may have changed, and thus, the fair value of the wrap contracts may have been different. Therefore, there would likely have been an immediate increase or decrease in the Fund’s net asset value which could have then begun to fluctuate daily. As a result, the Morley Capital Accumulation Fund would no longer have been able to maintain a stable net asset value per share.

	On October 1, 2004, the Board of Trustees determined to change the Fund from a stable value Fund to a short duration bond fund with a fluctuating NAV. Accordingly, on October 4, 2004, the Fund ceased to rely on wrap contracts in seeking to maintain a stable NAV of $10.00 per share and, during the period from October 4, 2004 until December 5, 2004 the Fund utilized the amortized cost methodology in seeking to maintain a stable NAV.

	As of October 4, 2004, the last day the wrap contracts were utilized, the fair value of the wrap contracts was $6,254,100. Gartmore Mutual Fund Capital Trust made a contribution of $6,254,100 to maintain the NAV of $10.00.


(j)	Capital Share Transactions


	Transactions in capital shares of the Funds were as follows:

146 Annual Report 2004



		Growth						Large Cap Value
		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)	$	7,859,219		$	2,910,606		$	9,618,899		$	12,314,429
	Proceeds from shares issued in connection with merger		25,745,232			—			—			—
	Dividends reinvested		—			—			217,672			260,774
	Cost of shares redeemed		(9,914,834	)		(2,601,863	)		(12,838,218	)		(15,437,364	)



			23,689,617			308,743			(3,001,647	)		(2,862,161	)



Class B Shares
	Proceeds from shares issued (a)		584,632			486,213			265,624			125,624
	Proceeds from shares issued in connection with merger		2,002,751			—			—			—
	Dividends reinvested		—			—			2,413			2,960
	Cost of shares redeemed		(835,589	)		(576,838	)		(142,322	)		(70,249	)


			1,751,794			(90,625	)		125,715			58,335



Class C Shares
	Proceeds from shares issued (a)		127,521			32,377			1,899,004			151,694
	Proceeds from shares issued in connection with merger		54,708			—			—			—
	Dividends reinvested		—			—			408			455
	Cost of shares redeemed		(34,209	)		(2,889	)		(1,499,853	)		(14,973	)



			148,020			29,488			399,559			137,176



Class D Shares
	Proceeds from shares issued (a)		8,752,070			18,673,667			—			—
	Dividends reinvested		79,967			—			—			—
	Cost of shares redeemed		(34,708,301	)		(38,706,342	)		—			—



			(25,876,264	)		(20,032,675	)		—			—



Class R Shares
	Proceeds from shares issued (a)		—			1,000	(b)		—			1,000	(b)
	Dividends reinvested		—			—			8			—



			—			1,000			8			1,000



Institutional Service Class Shares
	Proceeds from shares issued (a)		3,159,908			9,137,163			—			—
	Dividends reinvested		28,144			—			—			—
	Cost of shares redeemed		(82,872,540	)		(8,589,211	)		—			—



			(79,684,488	)		547,952			—			—


Institutional Class Shares
	Proceeds from shares issued (a)		1,000	(c)		—			—			—
	Dividends reinvested		—			—			—			—
	Cost of shares redeemed		—			—			—			—



			1,000			—			—			—



Change in net assets from capital transactions		$	(79,970,321	)	$	(19,236,117	)	$	(2,476,365	)	$	(2,665,650	)


SHARE TRANSACTIONS:
Class A Shares
	Issued		1,291,849			558,282			849,959			1,354,090
	Issued in connection with merger		4,274,297			—			—			—
	Reinvested		—			—			19,268			28,368
	Redeemed		(1,627,493	)		(474,885	)		(1,136,552	)		(1,702,392	)



			3,938,653			83,397			(267,325	)		(319,934	)



Class B Shares
	Issued		103,358			103,132			23,967			13,569
	Issued in connection with merger		358,069			—			—			—
	Reinvested		—			—			217			325
	Redeemed		(147,973	)		(124,007	)		(12,584	)		(7,764	)



			313,454			(20,875	)		11,600			6,130



Class C Shares
	Issued		22,287			7,311			174,622			16,415
	Issued in connection with merger		9,772			—			—			—
	Reinvested		—			—			37			50
	Redeemed		(6,263	)		(643	)		(134,727	)		(1,587	)


			25,796			6,668			39,932			14,878



Class D Shares
	Issued		1,414,110			3,554,468			—			—
	Reinvested		13,284			—			—			—
	Redeemed		(5,603,737	)		(7,575,195	)		—			—


			(4,176,343	)		(4,020,727	)		—			—



Class R Shares
	Issued		—			174	(b)		—			101	(b)
	Reinvested		—			—			1			—



			—			174			1			101



Institutional Service Class Shares
	Issued		508,713			1,794,514			—			—
	Reinvested		4,667			—			—			—
	Redeemed		(12,993,820	)		(1,684,284	)		—			—



			(12,480,440	)		110,230			—			—



Institutional Class Shares
	Issued		158	(c)		—			—			—
	Reinvested		—			—			—			—
	Redeemed		—			—			—			—



			158			—			—			—


Total change in shares			(12,378,722	)		(3,841,133	)		(215,792	)		(298,825	)

[Additional columns below]

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



		Nationwide
		Year Ended			Year Ended
		October 31, 2004			October 31, 2003




CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (a)	$	214,013,083		$	309,491,897
	Proceeds from shares issued in connection with merger		—			—
	Dividends reinvested		1,728,517			1,913,907
	Cost of shares redeemed		(359,515,876	)		(184,973,546	)


			(143,774,276	)		126,432,258


Class B Shares
	Proceeds from shares issued (a)		2,694,414			2,851,038
	Proceeds from shares issued in connection with merger		—			—
	Dividends reinvested		—			20,214
	Cost of shares redeemed		(4,792,571	)		(4,517,058	)


			(2,098,157	)		(1,645,806	)


Class C Shares
	Proceeds from shares issued (a)		432,663			453,623
	Proceeds from shares issued in connection with merger		—			—
	Dividends reinvested		210			152
	Cost of shares redeemed		(193,194	)		(37,271	)


			239,679			416,504


Class D Shares
	Proceeds from shares issued (a)		49,440,425			51,966,650
	Dividends reinvested		8,190,661			9,067,856
	Cost of shares redeemed		(195,870,077	)		(156,627,769	)


			(138,238,991	)		(95,593,263	)


Class R Shares
	Proceeds from shares issued (a)		—			1,000	(b)
	Dividends reinvested		2			—


			2			1,000


Institutional Service Class Shares
	Proceeds from shares issued (a)		1,760,405			5,415,463
	Dividends reinvested		161,778			446,348
	Cost of shares redeemed		(62,700,633	)		(7,635,009	)


			(60,778,450	)		(1,773,198	)


Institutional Class Shares
	Proceeds from shares issued (a)		365,541	(c)		—
	Dividends reinvested		537	(c)		—
	Cost of shares redeemed		(21,684	)(c)		—


			344,394			—


Change in net assets from capital transactions		$	(344,305,799	)	$	27,837,495


SHARE TRANSACTIONS:
Class A Shares
	Issued		11,308,654			19,320,268
	Issued in connection with merger		—			—
	Reinvested		92,155			120,704
	Redeemed		(19,420,042	)		(11,876,314	)


			(8,019,233	)		7,564,658


Class B Shares
	Issued		146,163			183,115
	Issued in connection with merger		—			—
	Reinvested		—			1,376
	Redeemed		(260,865	)		(293,230	)


			(114,702	)		(108,739	)


Class C Shares
	Issued		23,828			28,327
	Issued in connection with merger		—			—
	Reinvested		12			10
	Redeemed		(10,633	)		(2,312	)


			13,207			26,025


Class D Shares
	Issued		2,630,865			3,245,827
	Reinvested		439,561			576,879
	Redeemed		(10,423,824	)		(9,997,956	)


			(7,353,398	)		(6,175,250	)


Class R Shares
	Issued		—			58	(b)
	Reinvested		—			—


			—			58


Institutional Service Class Shares
	Issued		93,373			344,193
	Reinvested		8,764			28,354
	Redeemed		(3,213,563	)		(489,697	)


			(3,111,426	)		(117,150	)


Institutional Class Shares
	Issued		19,274	(c)		—
	Reinvested		29	(c)		—
	Redeemed		(1,178	)(c)		—


			18,125			—


Total change in shares			(18,567,427	)		1,189,602


(a)		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 147


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series



		Mid Cap Growth						Small Cap Fund
		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)	$	1,321,580		$	467,286	(c)	$	16,035,203		$	13,361,740
	Dividends reinvested		25,656			—			260,691			—
	Cost of shares redeemed		(448,690	)		—			(17,255,793	)		(19,926,369	)


			898,546			467,286			(959,899	)		(6,564,629	)


Class B Shares
	Proceeds from shares issued (a)		132,573			17,998	(d)		149,084			181,450
	Dividends reinvested		2,266			—			17,840			—
	Cost of shares redeemed		(2,010	)		(70	) (d)		(214,488	)		(163,081	)


			132,829			17,928			(47,564	)		18,369


Class C Shares
	Proceeds from shares issued (a)		1,002,064			1,000	(d)		98,779			46,554
	Dividends reinvested		28			—			1,102			—
	Cost of shares redeemed		(784,671	)		—			(21,720	)		(8,167	)


			217,421			1,000			78,161			38,387


Class R Shares
	Proceeds from shares issued (a)		—			1,000	(b)		1,003	(f)		—
	Dividends reinvested		28			—			—			—


			28			1,000			1,003			—


Institutional Service Class Shares
	Proceeds from shares issued (a)		—			—			31,388,164			11,749,731
	Dividends reinvested		—			—			282,807			—
	Cost of shares redeemed		—			—			(50,921,441	)		(2,368,474	)


			—			—			(19,250,470	)		9,381,257


Institutional Class Shares
	Proceeds from shares issued (a)		98,617			—			130,222	(e)		—
	Dividends reinvested		36,735						—			—
	Cost of shares redeemed		(7,792	)		(1,999	)		(10,519	) (e)		—


			127,560			(1,999	)		119,703			—


Change in net assets from capital transactions		$	1,376,384		$	485,215		$	(20,059,066	)	$	2,873,384


SHARE TRANSACTIONS:
Class A Shares
	Issued		95,473			37,697	(c)		1,087,993			1,197,541
	Reinvested		1,881			—			18,346			—
	Redeemed		(32,039	)		—			(1,178,894	)		(1,759,018	)


			65,315			37,697			(72,555	)		(561,477	)


Class B Shares
	Issued		9,505			1,329	(d)		10,169			17,705
	Reinvested		166			—			1,295			—
	Redeemed		(145	)		(5	)(d)		(14,985	)		(15,954	)


			9,526			1,324			(3,521	)		1,751


Class C Shares
	Issued		72,398			76	(d)		6,689			4,623
	Reinvested		2			—			80			—
	Redeemed		(56,594	)		—			(1,540	)		(852	)


			15,806			76			5,229			3,771


Class R Shares
	Issued		—			76	(b)		71	(f)		—
	Reinvested		2			—			—			—


			2			76			71			—


Institutional Service Class Shares
	Issued		—			—			2,083,984			946,746
	Reinvested		—			—			19,749			—
	Redeemed		—			—			(3,451,255	)		(204,231	)


			—			—			(1,347,522	)		742,515


Institutional Class Shares
	Issued		6,864			—			8,320	(e)		—
	Reinvested		2,686			—			—			—
	Redeemed		(560	)		(152	)		(686	) (e)		—


			8,990			(152	)		7,634			—


Total change in shares			99,639			39,021			(1,410,664	)		186,560


(a)		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 March 5, 2003 (commencement of operations) through October 31, 2003.
(d)		For the period from August 21, 2003 (commencement of operations) through October 31, 2003.
(e)		For the period from June 29, 2004 (commencement of operations) through October 31, 2004.
(f)		For the period from December 30, 2003 (commencement of operations) through October 31, 2004.

148 Annual Report 2004



		Aggressive						Moderately Aggressive
		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	$	21,668,419		$	3,686,965		$	29,075,809		$	8,167,525
	Dividends reinvested		67,625			11,380			166,167			35,945
	Cost of shares redeemed		(6,633,812	)		(498,817	)		(5,060,251	)		(339,508	)


			15,102,232			3,199,528			24,181,725			7,863,962


Class B Shares
	Proceeds from shares issued		5,717,425			1,413,283			13,608,132			5,302,542
	Dividends reinvested		14,290			2,025			53,483			8,638
	Cost of shares redeemed		(191,398	)		(16,292	)		(743,029	)		(21,928	)


			5,540,317			1,399,016			12,918,586			5,289,252


Class C Shares
	Proceeds from shares issued		36,327,447			7,347,682			81,881,317			16,915,450
	Dividends reinvested		26,537			5,965			118,357			25,460
	Cost of shares redeemed		(2,129,482	)		(129,658	)		(4,268,083	)		(94,987	)


			34,224,502			7,223,989			77,731,591			16,845,923


Class R Shares
	Proceeds from shares issued		34,333			1,000	(a)		59,943			1,000	(a)
	Dividends reinvested		10			—			12			—


			34,343			1,000			59,955			1,000


Service Class Shares
	Proceeds from shares issued		152,585,830			61,169,677			237,274,734			102,633,178
	Dividends reinvested		2,076,144			880,099			4,111,940			1,919,662
	Cost of shares redeemed		(18,735,618	)		(6,896,672	)		(27,552,917	)		(8,800,054	)


			135,926,356			55,153,104			213,833,757			95,752,786


Change in net assets from capital transactions		$	190,827,750		$	66,976,637		$	328,725,614		$	125,752,923


SHARE TRANSACTIONS:
Class A Shares
	Issued		2,591,594			507,294			3,278,521			1,051,871
	Reinvested		8,052			1,620			18,669			4,741
	Redeemed		(787,762	)		(68,383	)		(568,297	)		(44,131	)


			1,811,884			440,531			2,728,893			1,012,481


Class B Shares
	Issued		689,149			195,801			1,558,732			678,077
	Reinvested		1,719			287			6,084			1,120
	Redeemed		(23,051	)		(2,612	)		(85,185	)		(2,960	)


			667,817			193,476			1,479,631			676,237


Class C Shares
	Issued		4,383,105			1,005,789			9,358,201			2,160,542
	Reinvested		3,201			834			13,462			3,284
	Redeemed		(256,556	)		(17,019	)		(488,888	)		(12,091	)


			4,129,750			989,604			8,882,775			2,151,735


Class R Shares
	Issued		4,248			134	(a)		6,853			125	(a)
	Reinvested		1			—			1			—


			4,249			134			6,854			125


Service Class Shares
	Issued		18,118,430			8,858,470			26,738,835			13,748,910
	Reinvested		246,979			128,385			463,056			256,279
	Redeemed		(2,228,254	)		(1,023,553	)		(3,093,329	)		(1,199,936	)


			16,137,155			7,963,302			24,108,562			12,805,253


Total change in shares			22,750,855			9,587,047			37,206,715			16,645,831

[Additional columns below]

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



		Moderate
		Year Ended			Year Ended
		October 31, 2004			October 31, 2003



CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued	$	28,300,143		$	8,412,908
	Dividends reinvested		209,300			64,774
	Cost of shares redeemed		(4,510,995	)		(366,671	)


			23,998,448			8,111,011


Class B Shares
	Proceeds from shares issued		13,421,315			5,971,251
	Dividends reinvested		69,279			19,679
	Cost of shares redeemed		(869,023	)		(248,657	)


			12,621,571			5,742,273


Class C Shares
	Proceeds from shares issued		84,358,359			21,097,191
	Dividends reinvested		164,758			32,729
	Cost of shares redeemed		(7,305,391	)		(295,650	)


			77,217,726			20,834,270


Class R Shares
	Proceeds from shares issued		39,600			1,000	(a)
	Dividends reinvested		15			—


			39,615			1,000


Service Class Shares
	Proceeds from shares issued		256,521,364			110,564,120
	Dividends reinvested		5,748,426			3,226,859
	Cost of shares redeemed		(42,366,755	)		(15,743,164	)


			219,903,035			98,047,815


Change in net assets from capital transactions		$	333,780,395		$	132,736,369


SHARE TRANSACTIONS:
Class A Shares
	Issued		3,011,399			993,432
	Reinvested		22,187			7,673
	Redeemed		(479,820	)		(43,976	)


			2,553,766			957,129


Class B Shares
	Issued		1,433,413			701,282
	Reinvested		7,382			2,324
	Redeemed		(92,522	)		(28,954	)


			1,348,273			674,652


Class C Shares
	Issued		9,031,094			2,437,819
	Reinvested		17,614			3,850
	Redeemed		(784,797	)		(34,283	)


			8,263,911			2,407,386


Class R Shares
	Issued		4,280			114	(a)
	Reinvested		2			—


			4,282			114


Service Class Shares
	Issued		27,161,559			13,378,945
	Reinvested		610,271			388,429
	Redeemed		(4,483,160	)		(1,910,894	)


			23,288,670			11,856,480


Total change in shares			35,458,902			15,895,761


(a)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.

2004 Annual Report 149


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series



		Moderately Conservative						Conservative
		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	$	9,525,868		$	4,225,841		$	4,116,231		$	1,393,569
	Dividends reinvested		101,639			55,286			42,702			37,342
	Cost of shares redeemed		(3,295,669	)		(986,302	)		(1,014,708	)		(496,526	)


			6,331,838			3,294,825			3,144,225			934,385


Class B Shares
	Proceeds from shares issued		2,661,539			2,455,366			2,087,549			1,561,345
	Dividends reinvested		24,872			10,211			23,210			15,110
	Cost of shares redeemed		(686,483	)		(180,607	)		(351,106	)		(61,044	)


			1,999,928			2,284,970			1,759,653			1,515,411


Class C Shares
	Proceeds from shares issued		22,705,109			7,381,645			12,228,628			3,810,896
	Dividends reinvested		82,699			22,729			49,034			17,856
	Cost of shares redeemed		(4,177,562	)		(149,275	)		(2,320,470	)		(694,751	)


			18,610,246			7,255,099			9,957,192			3,134,001


Class R Shares
	Proceeds from shares issued		37			1,000	(a)		140			1,000	(a)
	Dividends reinvested		17			—			19			—


			54			1,000			159			1,000


Service Class Shares
	Proceeds from shares issued		68,707,212			42,497,599			58,037,110			39,960,821
	Dividends reinvested		2,042,334			1,228,985			1,696,250			1,183,948
	Cost of shares redeemed		(16,895,381	)		(7,526,005	)		(19,762,869	)		(11,679,132	)


			53,854,165			36,200,579			39,970,491			29,465,637


Change in net assets from capital transactions		$	80,796,231		$	49,036,473		$	54,831,720		$	35,050,434


SHARE TRANSACTIONS:
Class A Shares
	Issued		982,378			474,146			409,200			144,654
	Reinvested		10,435			6,111			4,256			3,872
	Redeemed		(338,213	)		(108,681	)		(100,949	)		(50,964	)


			654,600			371,576			312,507			97,562


Class B Shares
	Issued		273,936			269,647			208,358			161,142
	Reinvested		2,552			1,119			2,315			1,555
	Redeemed		(70,137	)		(20,469	)		(35,104	)		(6,304	)


			206,351			250,297			175,569			156,393


Class C Shares
	Issued		2,339,588			802,877			1,219,283			391,909
	Reinvested		8,508			2,492			4,904			1,850
	Redeemed		(430,830	)		(16,198	)		(232,553	)		(71,128	)


			1,917,266			789,171			991,634			322,631


Class R Shares
	Issued		4			107	(a)		13			102	(a)
	Reinvested		2			—			2			—


			6			107			15			102


Service Class Shares
	Issued		7,024,940			4,727,140			5,764,611			4,124,747
	Reinvested		209,104			136,388			168,801			122,204
	Redeemed		(1,732,898	)		(837,236	)		(1,964,374	)		(1,204,062	)


			5,501,146			4,026,292			3,969,038			3,042,889


Total change in shares			8,279,369			5,437,443			5,448,763			3,619,577


(a)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.

150 Annual Report 2004



		Bond						Government Bond
		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)	$	4,395,849		$	17,113,561		$	22,247,288		$	50,656,040
	Dividends reinvested		388,820			401,909			3,206,971			3,120,054
	Cost of shares redeemed		(4,324,080	)		(15,097,592	)		(25,255,940	)		(50,704,478	)


			460,589			2,417,878			198,319			3,071,616


Class B Shares
	Proceeds from shares issued (a)		82,988			24,399	(b)		379,377			1,000	(b)
	Dividends reinvested		984			4	(b)		2,659			2	(b)
	Cost of shares redeemed		(7,476	)		—			(213,355	)		—


			76,496			24,403			168,681			1,002


Class C Shares
	Proceeds from shares issued (a)		178,993			9,239	(b)		382,446			64,984	(b)
	Dividends reinvested		274			3	(b)		1,002			2	(b)
	Cost of shares redeemed		(8,954	)		—			(150,644	)		—


			170,313			9,242			232,804			64,986


Class D Shares
	Proceeds from shares issued (a)		8,622,722			15,368,864			19,942,178			77,219,009
	Dividends reinvested		4,990,110			6,304,715			7,911,363			9,346,911
	Cost of shares redeemed		(29,578,633	)		(33,672,230	)		(57,516,442	)		(101,363,228	)


			(15,965,801	)		(11,998,651	)		(29,662,901	)		(14,797,308	)


Class R Shares
	Proceeds from shares issued (a)		—			1,000	(c)		—			1,000	(c)
	Dividends reinvested		40			—			56			—


			40			1,000			56			1,000


Class X Shares
	Proceeds from shares issued (a)		122,993			488,460	(d)		107,014			1,051,895	(d)
	Dividends reinvested		120,618			131,737	(d)		270,999			281,738	(d)
	Cost of shares redeemed		(491,500	)		(581,771	) (d)		(1,370,259	)		(1,521,327	) (d)


			(247,889	)		38,426			(992,246	)		(187,694	)


Class Y Shares
	Proceeds from shares issued (a)		9,565			61,711	(d)		38,141			1,415,153	(d)
	Dividends reinvested		7,632			9,624	(d)		38,511			44,330	(d)
	Cost of shares redeemed		(37,097	)		(94,127	) (d)		(983,441	)		(437,977	) (d)


			(19,900	)		(22,792	)		(906,789	)		1,021,506


Institutional Class Shares
	Proceeds from shares issued (a)		274,489	(e)		—			157,722	(e)		—
	Dividends reinvested		3,099	(e)		—			1,495	(e)		—
	Cost of shares redeemed		(24,937	) (e)		—			(13,983	) (e)		—


			252,651			—			145,234			—


Change in net assets from capital transactions		$	(15,273,501	)	$	(9,530,494	)	$	(30,816,842	)	$	(10,824,892	)

SHARE TRANSACTIONS:
Class A Shares
	Issued		452,327			1,763,195			2,145,208			4,725,761
	Reinvested		40,156			41,695			309,760			288,833
	Redeemed		(445,874	)		(1,558,074	)		(2,435,334	)		(4,754,819	)


			46,609			246,816			19,634			259,775


Class B Shares
	Issued		8,618			2,521	(b)		36,733			96	(b)
	Reinvested		102			—	(f)		259			—	(f)
	Redeemed		(766	)		—			(20,725	)		—


			7,954			2,521			16,267			96


Class C Shares
	Issued		18,625			960	(b)		36,914			6,111	(b)
	Reinvested		28			—	(f)		97			—	(f)
	Redeemed		(919	)		—			(14,581	)		—


			17,734			960			22,430			6,111


Class D Shares
	Issued		886,254			1,595,650			1,932,331			7,193,613
	Reinvested		514,563			653,370			763,040			864,411
	Redeemed		(3,044,879	)		(3,479,399	)		(5,553,157	)		(9,453,642	)


			(1,644,062	)		(1,230,379	)		(2,857,786	)		(1,395,618	)


Class R Shares
	Issued		—			102	(c)		—			93	(c)
	Reinvested		4			—			5			—


			4			102			5			93


Class X Shares
	Issued		12,682			50,487	(d)		10,308			97,180	(d)
	Reinvested		12,455			13,668	(d)		26,189			26,083	(d)
	Redeemed		(50,684	)		(60,358	) (d)		(133,004	)		(141,799	) (d)


			(25,547	)		3,797			(96,507	)		(18,536	)


Class Y Shares
	Issued		977			6,436	(d)		3,651			130,614	(d)
	Reinvested		787			998	(d)		3,722			4,104	(d)
	Redeemed		(3,813	)		(9,806	) (d)		(94,727	)		(40,663	) (d)


			(2,049	)		(2,372	)		(87,354	)		94,055


Institutional Class Shares
	Issued		28,858	(e)		—			15,585	(e)		—
	Reinvested		321	(e)		—			145	(e)		—
	Redeemed		(2,560	) (e)		—			(1,349	) (e)		—


			26,619			—			14,381			—


Total change in shares			(1,572,738	)		(978,555	)		(2,968,930	)		(1,054,024	)

[Additional columns below]

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



		Tax-Free Income
		Year Ended			Year Ended
		October 31, 2004			October 31, 2003




CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (a)	$	3,319,010		$	8,702,448
	Dividends reinvested		249,559			240,264
	Cost of shares redeemed		(1,711,258	)		(8,938,264	)


			1,857,311			4,448


Class B Shares
	Proceeds from shares issued (a)		382,798			40,995	(b)
	Dividends reinvested		4,477			2	(b)
	Cost of shares redeemed		(64,584	)		—


			322,691			40,997


Class C Shares
	Proceeds from shares issued (a)		1,001,038			1,000	(b)
	Dividends reinvested		1,899			3	(b)
	Cost of shares redeemed		(24,538	)		—


			978,399			1,003


Class D Shares
	Proceeds from shares issued (a)		4,285,007			6,215,219
	Dividends reinvested		5,883,981			6,415,897
	Cost of shares redeemed		(23,473,368	)		(23,117,612	)


			(13,304,380	)		(10,486,496	)


Class R Shares
	Proceeds from shares issued (a)		—			—
	Dividends reinvested		—			—


			—			—


Class X Shares
	Proceeds from shares issued (a)		188,611			1,557,938	(d)
	Dividends reinvested		169,798			170,155	(d)
	Cost of shares redeemed		(984,657	)		(1,286,332	) (d)


			(626,248	)		441,761


Class Y Shares
	Proceeds from shares issued (a)		117,769			488,558	(d)
	Dividends reinvested		17,040			17,835	(d)
	Cost of shares redeemed		(303,897	)		(73,333	) (d)


			(169,088	)		433,060


Institutional Class Shares
	Proceeds from shares issued (a)		—			—
	Dividends reinvested		—			—
	Cost of shares redeemed		—			—


			—			—


Change in net assets from capital transactions		$	(10,941,315	)	$	(9,565,227	)


SHARE TRANSACTIONS:
Class A Shares
	Issued		315,901			827,782
	Reinvested		23,670			22,794
	Redeemed		(162,530	)		(849,639	)


			177,041			937


Class B Shares
	Issued		36,654			3,907	(b)
	Reinvested		426			—	(f)
	Redeemed		(6,270	)		—


			30,810			3,907


Class C Shares
	Issued		94,479			98	(b)
	Reinvested		181			—	(f)
	Redeemed		(2,335	)		—


			92,325			98


Class D Shares
	Issued		406,464			588,592
	Reinvested		557,872			608,486
	Redeemed		(2,228,266	)		(2,189,516	)


			(1,263,930	)		(992,438	)


Class R Shares
	Issued		—			—
	Reinvested		—			—


			—			—


Class X Shares
	Issued		17,828			147,470	(d)
	Reinvested		16,103			16,143	(d)
	Redeemed		(93,604	)		(122,511	) (d)


			(59,673	)		41,102


Class Y Shares
	Issued		11,117			46,460	(d)
	Reinvested		1,619			1,693	(d)
	Redeemed		(28,679	)		(6,987	) (d)


			(15,943	)		41,166


Institutional Class Shares
	Issued		—			—
	Reinvested		—			—
	Redeemed		—			—


			—			—


Total change in shares			(1,039,370	)		(905,228	)


(a)		Includes redemption fees, if any.
(b)		For the period from September 4, 2003 (commencement of operations) through October 31, 2003.
(c)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(d)		Effective September 1, 2003, Class B and Class C shares were renamed Class X and Class Y shares, respectively.
(e)		For the period from June 30, 2004 (commencement of operations) through October 31, 2004.
(f)		Less than 1 share.

2004 Annual Report 151


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series



		Money Market						Morley Enhanced Income
		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 (c)	$	—		$	—		$	1,625,575		$	1,795,507
	Dividends reinvested		—			—			26,520			54,052
	Cost of shares redeemed		—			—			(2,456,275	)		(1,092,659	)


			—			—			(804,180	)		756,900


Class R Shares
	Proceeds from shares issued (c)		—			—			—			1,000	(b)
	Dividends reinvested		—			—			16			—


			—			—			16			1,000


Institutional Class Shares
	Proceeds from shares issued (c)		1,179,019,081			2,480,711,321			151,261,349			111,749,011
	Dividends reinvested		8,180,833			7,836,288			4,805,301			3,350,437
	Cost of shares redeemed		(1,182,262,579	)		(1,282,690,155	)		(9,332,795	)		(14,827,890	)


			4,937,335			1,205,857,454			146,733,855			100,271,558


Institutional Service Class Shares
	Proceeds from shares issued (c)		—			—			2,055,063			2,358,477
	Dividends reinvested		—			—			160,545			326,798
	Cost of shares redeemed		—			—			(3,909,881	)		(3,349,428	)


			—			—			(1,694,273	)		(664,153	)


IRA Class Shares
	Proceeds from shares issued (c)		—			—			—			—
	Dividends reinvested		—			—			—			—
	Cost of shares redeemed		—			—			—			—


			—			—			—			—


Service Class Shares
	Proceeds from shares issued (c)		50,997,429			466,749,057			—			—
	Dividends reinvested		31,400			1,032,516			—			—
	Cost of shares redeemed		(53,549,396	)		(1,086,643,180	)		—			—


			(2,520,567	)		(618,861,607	)		—			—


Prime Shares
	Proceeds from shares issued (c)		325,149,966			824,451,445			—			—
	Dividends reinvested		2,503,157			4,982,233			—			—
	Cost of shares redeemed		(403,385,510	)		(1,536,203,540	)		—			—


			(75,732,387	)		(706,769,862	)		—			—


Change in net assets from capital transactions		$	(73,315,619	)	$	(119,774,015	)	$	144,235,418		$	100,365,305

SHARE TRANSACTIONS:
Class A Shares
	Issued		—			—			176,384			190,806
	Reinvested		—			—			2,876			5,753
	Redeemed		—			—			(266,872	)		(116,300	)


			—			—			(87,612	)		80,259


Class R Shares
	Issued		—			—			—			108	(b)
	Reinvested		—			—			2			—


			—			—			2			108


Institutional Class Shares
	Issued		1,179,019,081			2,480,711,321			16,406,509			11,916,117
	Reinvested		8,180,833			7,836,288			521,703			357,213
	Redeemed		(1,182,262,579	)		(1,282,690,155	)		(1,013,943	)		(1,578,882	)


			4,937,335			1,205,857,454			15,914,269			10,694,448


Institutional Service Class Shares
	Issued		—			—			222,791			251,282
	Reinvested		—			—			17,400			34,764
	Redeemed		—			—			(423,504	)		(356,234	)


			—			—			(183,313	)		(70,188	)


IRA Class Shares
	Issued		—			—			—			—
	Reinvested		—			—			—			—
	Redeemed		—			—			—			—


			—			—			—			—


Service Class Shares
	Issued		50,997,429			466,749,057			—			—
	Reinvested		31,400			1,032,516			—			—
	Redeemed		(53,549,396	)		(1,086,643,180	)		—			—


			(2,520,567	)		(618,861,607	)		—			—


Prime Shares
	Issued		325,149,866			824,451,415			—			—
	Reinvested		2,503,157			4,982,233			—			—
	Redeemed		(403,385,510	)		(1,536,203,533	)		—			—


			(75,732,487	)		(706,769,885	)		—			—


Total change in shares			(73,315,719	)		(119,774,038	)		15,643,346			10,704,627

[Additional columns below]

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



		Morley Capital Accumulation
		Year Ended			Year Ended
		October 31, 2004			October 31, 2003



CAPITAL TRANSACTIONS:
Class A Shares
	Proceeds from shares issued (c)	$	1,930,508		$	73,351	(a)
	Dividends reinvested		12,775			242	(a)
	Cost of shares redeemed		(400,935	)		(31,148	) (a)


			1,542,348			42,445


Class R Shares
	Proceeds from shares issued (c)		—			—
	Dividends reinvested		—			—


			—			—


Institutional Class Shares
	Proceeds from shares issued (c)		92,614,497			60,199,337
	Dividends reinvested		2,020,022			1,020,626
	Cost of shares redeemed		(69,085,810	)		(32,968,438	)


			25,548,709			28,251,525


Institutional Service Class Shares
	Proceeds from shares issued (c)		—			—
	Dividends reinvested		—			—
	Cost of shares redeemed		—			—


			—			—


IRA Class Shares
	Proceeds from shares issued (c)		412,997,999			535,353,917
	Dividends reinvested		10,308,892			4,792,329
	Cost of shares redeemed		(467,952,756	)		(164,212,921	)


			(44,645,865	)		375,933,325


Service Class Shares
	Proceeds from shares issued (c)		234,707,875			204,774,259
	Dividends reinvested		5,513,973			3,908,068
	Cost of shares redeemed		(172,752,999	)		(96,792,962	)


			67,468,849			111,889,365


Prime Shares
	Proceeds from shares issued (c)		—			—
	Dividends reinvested		—			—
	Cost of shares redeemed		—			—


			—			—


Change in net assets from capital transactions		$	49,914,041		$	516,116,660


SHARE TRANSACTIONS:
Class A Shares
	Issued		193,030			7,335	(a)
	Reinvested		1,278			24	(a)
	Redeemed		(40,093	)		(3,114	) (a)


			154,215			4,245


Class R Shares
	Issued		—			—
	Reinvested		—			—


			—			—


Institutional Class Shares
	Issued		9,256,793			6,019,933
	Reinvested		201,940			102,063
	Redeemed		(6,908,581	)		(3,296,844	)


			2,550,152			2,825,152


Institutional Service Class Shares
	Issued		—			—
	Reinvested		—			—
	Redeemed		—			—


			—			—


IRA Class Shares
	Issued		41,270,841			53,535,387
	Reinvested		1,030,950			479,233
	Redeemed		(46,794,992	)		(16,421,292	)


			(4,493,201	)		37,593,328


Service Class Shares
	Issued		23,456,199			20,477,426
	Reinvested		551,397			390,807
	Redeemed		(17,275,300	)		(9,679,296	)


			6,732,296			11,188,937


Prime Shares
	Issued		—			—
	Reinvested		—			—
	Redeemed		—			—


			—			—


Total change in shares			4,943,462			51,611,662


(a)		For the period from July 16, 2003 (commencement of operations) through October 31, 2003.
(b)		For the period from October 1, 2003 (commencement of operations) through October 31, 2003.
(c)		Includes redemption fees, if any.

152 Annual Report 2004

4. Transactions with Affiliates

Under the terms of the Trust’s Investment Advisory Agreements, Gartmore Mutual Fund Capital Trust (“GMF”) or Gartmore Morley Capital Management, Inc. (“GMCM”) manages the investment of the assets and supervises the daily business affairs of their respective Funds (as shown in the table below). GMF is a wholly-owned subsidiary of Gartmore Global Investments, Inc. (“GGI”), a holding company. GGI is a majority-owned subsidiary of Gartmore Global Asset Management Trust (“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. GMCM is a wholly-owned subsidiary of Gartmore Morley Financial Services, Inc., an indirect subsidiary of GGI. With respect to the Large Cap Value Fund, GMF also provides investment management evaluation services in initially selecting and monitoring on an ongoing basis the performance of the subadvisers for such Fund. NorthPointe Capital, LLC (“NorthPointe”) currently serves as the subadviser for the Large Cap Value Fund and as such, manages the Fund’s investments and has the responsibility for making all investment decisions for the Fund. The adviser and subadviser, if applicable, for each Fund is as follows:


Fund	Adviser		Subadviser


Growth		GMF		n/a

Large Cap Value		GMF		NorthPointe Capital, LLC (a)

Nationwide		GMF		n/a

Mid Cap Growth		GMF		n/a

Small Cap		GMF		n/a

Aggressive		GMF		n/a

Moderately Aggressive		GMF		n/a

Moderate		GMF		n/a

Moderately Conservative		GMF		n/a

Conservative		GMF		n/a

Bond		GMF		n/a

Government Bond		GMF		n/a

Tax-Free Income		GMF		n/a

Money Market		GMF		n/a

Morley Enhanced Income		GMCM		n/a

Morley Capital Accumulation		GMCM		n/a


(a)		Affiliate of GMF.

2004 Annual Report 153


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series

Under the terms of the Investment Advisory Agreements, each Fund pays GMF or GMCM, as applicable, an investment advisory fee based on that Fund’s average daily net assets. From these fees, pursuant to the subadvisory agreement, GMF pays fees to NorthPointe. Additional information regarding the investment advisory fees and subadvisory fees for GMF, GMCM and NorthPointe is as follows for the year ended October 31, 2004:


		Total		Fees		Paid to
Fund	Fee Schedule	Fees		Retained		Subadviser


Growth and Nationwide	Up to $250 million		0.60%		0.60%		—
	On the next $750 million		0.575%		0.575%		—
	On the next $1 billion		0.55%		0.55%		—
	On the next $3 billion		0.525%		0.525%		—
	On $5 billion and more		0.50%		0.50%		—

Large Cap Value	Up to $100 million		0.75%		0.40%		0.35%
	On $100 million and more		0.70%		0.40%		0.30%

Mid Cap Growth (a)	Up to $250 million		0.75%		0.75%		—
	$250 million up to $1 billion		0.725%		0.725%		—
	$1 billion up to $2 billion		0.70%		0.70%		—
	$2 billion up to $5 billion		0.675%		0.675%		—
	On $5 billion and more		0.65%		0.65%		—

Small Cap	Up to $100 million		0.95%		0.95%		—
	On $100 million and more		0.80%		0.80%		—

Investor Destinations Funds	All Assets		0.13%		0.13%		—

Bond, Government Bond	Up to $250 million		0.50%		0.50%		—
and Tax-Free Income	On the next $750 million		0.475%		0.475%		—
	On the next $1 billion		0.45%		0.45%		—
	On the next $3 billion		0.425%		0.425%		—
	On $5 billion and more		0.40%		0.40%		—

Money Market	Up to $1 billion		0.40%		0.40%		—
	On the next $1 billion		0.38%		0.38%		—
	On the next $3 billion		0.36%		0.36%		—
	On $5 billion and more		0.34%		0.34%		—

Morley Enhanced Income	Up to $500 million		0.35%		0.35%		—
	$500 million up to $1 billion		0.34%		0.34%		—
	$1 billion up to $3 billion		0.325%		0.325%		—
	$3 billion up to $5 billion		0.30%		0.30%		—
	$5 billion up to $10 billion		0.285%		0.285%		—
	$10 billion and more		0.275%		0.275%		—

Morley Capital Accumulation (b)	All Assets		0.35%		0.25%		—


(a)		Prior to March 1, 2004, the advisory fee was 0.75% on all asset levels.
(b)		GMCM has agreed to voluntarily waive 0.10% of the advisory fee until further written notice to the shareholders.

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

154 Annual Report 2004

until February 28, 2005. The expense limitations for the Investor Destinations Funds do not exclude Rule 12b-1 fees and administrative services fees.

Expense Caps

Institutional

Class A

Class B

Class C

Class D

Class R

Class X

Class Y

Class

Fund

Shares

Large Cap Value

1.00%

n/a

1.00%

n/a

Mid Cap Growth

1.15%

n/a

1.15%

n/a

1.15%

Small Cap

1.20%

n/a

1.20%

n/a

1.20%

Investor Destinations Funds (a)

0.71%

1.31%

n/a

0.81%

n/a

Government Bond

0.79%

n/a

Money Market (b)

n/a

0.59%

Morley Enhanced Income

0.45%

n/a

0.45%

n/a

0.45%

Morley Capital Accumulation

0.55%

n/a

0.55%

[Additional columns below]

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



	Expense Caps

	Institutional
	Service	Service	Prime	IRA
Fund	Class	Class	Shares	Class


Large Cap Value	n/a	n/a	n/a	n/a

Mid Cap Growth	n/a	n/a	n/a	n/a

Small Cap	1.20%	n/a	n/a	n/a

Investor Destinations Funds (a)	n/a	0.61%	n/a	n/a

Government Bond	0.79%	n/a	n/a	n/a

Money Market (b)	n/a	0.59%	0.59%	n/a

Morley Enhanced Income	0.45%	n/a	n/a	n/a

Morley Capital Accumulation	n/a	0.55%	n/a	0.55%


(a)		The Expense Limitation Agreement for these Funds also states that the expense ratio for each class will not exceed 4.00% through February 28, 2011.
(b)		GMF has also agreed contractually to limit expenses of the Service class to 0.75% including Rule 12b-1 fees and administrative services fees, until at least February 28, 2005.

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


Fund	Amount		Expires


Aggressive	$	154	March 31, 2005

Moderately Aggressive		483	March 31, 2005

Moderate		237	March 31, 2005

Moderately Conservative		505	March 31, 2005

Conservative		14,685	March 31, 2005

Morley Enhanced Income		518,978	December 29, 2004

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


	Amount		Amount		Amount
	Fiscal Year		Fiscal Year		Fiscal Year
Fund	2002		2003		2004


Large Cap Value	$	—	$	—	$	17,394

Mid Cap Growth		16,030		62,838		34,484

Small Cap		—		—		13,994

Money Market		86,972		102,737		1,937

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 certain

2004 Annual Report 155


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series

classes of 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 the following:


	Class A		Class B		Class C		Class R		Class X		Class Y
Fund	Shares		Shares		Shares		Shares		Shares		Shares


Growth		0.25%		1.00%		1.00%		0.50%		n/a		n/a

Large Cap Value		0.25%		1.00%		1.00%		0.50%		n/a		n/a

Nationwide		0.25%		1.00%		1.00%		0.50%		n/a		n/a

Mid Cap Growth		0.25%		1.00%		1.00%		0.50%		n/a		n/a

Small Cap		0.25%		1.00%		1.00%		0.50%		n/a		n/a

Investor Destinations Funds		0.25%		1.00%		1.00%		0.50%		n/a		n/a

Bond		0.25%		1.00%		1.00%		0.50%		0.85%		0.85%

Government Bond		0.25%		1.00%		1.00%		0.50%		0.85%		0.85%

Tax-Free Income		0.25%		1.00%		1.00%		n/a		0.85%		0.85%

Money Market		n/a		n/a		n/a		n/a		n/a		n/a

Morley Enhanced Income		0.25%		n/a		n/a		0.50%		n/a		n/a

Morley Capital Accumulation		0.25%		n/a		n/a		n/a		n/a		n/a

[Additional columns below]

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


	Service Class
Fund	Shares		IRA Class


Growth		n/a		n/a

Large Cap Value		n/a		n/a

Nationwide		n/a		n/a

Mid Cap Growth		n/a		n/a

Small Cap		n/a		n/a

Investor Destinations Funds		0.25%		n/a

Bond		n/a		n/a

Government Bond		n/a		n/a

Tax-Free Income		n/a		n/a

Money Market		0.15%		n/a

Morley Enhanced Income		n/a		n/a

Morley Capital Accumulation		0.25%		0.25%

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), Class D, and Class Y (until April 1, 2004) shares. These fees are deducted from and are not included in proceeds from sales of Class A, Class C, Class D, and Class Y shares. From these fees, GDSI pays sales commissions, salaries, and other expenses in connection with generating new sales of Class A, Class C, Class D, and Class Y shares of the Funds. GDSI also receives fees for services as principal underwriter for Class B and Class X shares of the Funds. These fees are contingent deferred sales charges (“CDSCs”) ranging from 1% to 5% imposed on redemptions of Class B and Class X 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 and Class Y shares also have a CDSC fee of 1% imposed on redemptions of Class C and Class Y shares made within one year of purchase. For the year ended October 31, 2004, GDSI received commissions of $6,074,186 from front-end sales charges of Class A, Class C, Class D, and Class Y shares and from CDSC fees from Class B, Class C, Class X, and Class Y shares of the Funds, of which $236,301 was reallowed to affiliated broker-dealers of the Funds.

The Funds (except the Investor Destinations, Money Market, and Morley Enhanced Income Funds) assess a 2.00% redemption fee on all classes of shares that are purchased and are sold or exchanged within 30 days of purchase (within 90 days for the Mid Cap Growth and Small Cap Funds and within five days for the Bond, Government Bond, and Tax-Free Income 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


Small Cap	$	80,106

For the Morley Capital Accumulation Fund, prior to October 4, 2004, the Fund imposed a redemption fee on certain redemptions, however, no redemption fee was charged during the annual period beginning November 1, 2003, as the events that would trigger the imposition of a redemption fee did not occur and the Fund did not collect any redemption

156 Annual Report 2004

fees. Beginning on October 4, 2004, when the wrap contracts terminated, through December 5, 2004, when the Fund converted to a short duration bond fund, the redemption fee was waived by the Fund. Beginning on December 6, 2004, the Fund began assessing a 2% redemption fee on all classes of shares that are sold or exchanged within 5 business days of purchase.

Under the terms of a Fund Administration Agreement, Gartmore SA Capital Trust (“GSA”) provides various administrative and accounting services for the Funds, 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 then are 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, Prime Shares, Service Class and Institutional Service Class shares of each of the Funds (except for the Morley Capital Accumulation Fund). For the Morley Capital Accumulation Fund, these fees are based on an annual rate of up to 0.25% of the average daily net assets of the IRA Class and Service Class shares.

As of October 31, 2004, the advisers or affiliates of the advisers directly held 76% of the shares outstanding of Mid Cap Growth.

5. 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.

2004 Annual Report 157


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series

6. 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


Growth	$	837,354,249	$	838,079,613

Large Cap Value		15,722,037		18,220,002

Nationwide		2,677,650,731		2,946,743,290

Mid Cap Growth		4,119,341		2,776,673

Small Cap		157,468,088		177,610,762

Aggressive		196,740,902		5,392,852

Moderately Aggressive		332,331,451		11,609,552

Moderate		333,069,498		24,589,300

Moderately Conservative		78,447,854		8,185,061

Conservative		50,993,435		8,557,001

Bond		20,535,666		46,301,785

Government Bond		211,975,162		253,434,325

Tax-Free Income		—		11,024,702

Morley Enhanced Income		240,739,813		112,165,253

Morley Capital Accumulation		858,272,295		1,205,463,079

7. 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.

158 Annual Report 2004

8. Federal Tax Information

The tax character of distributions paid during the fiscal year ended October 31, 2004, were 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
			Term
	Ordinary		Capital		Total Taxable		Tax Exempt
Fund	Income		Gains		Distributions		Distributions


Growth	$	110,403	$	—	$	110,403	$	—

Large Cap Value		225,175		—		225,175		—

Nationwide		10,820,137		—		10,820,137		—

Mid Cap Growth		66,870		16,507		83,377		—

Small Cap		—		562,665		562,665		—

Aggressive		2,367,184		—		2,367,184		—

Moderately Aggressive		5,002,066		—		5,002,066		—

Moderate		7,006,786		—		7,006,786		—

Moderately Conservative		2,521,331		—		2,521,331		—

Conservative		1,955,277		—		1,955,277		—

Bond		6,219,460		—		6,219,460		—

Government Bond		9,984,020		2,302,174		12,286,194		—

Tax-Free Income		17,054		—		17,054		8,517,827

Money Market		10,841,503		—		10,841,503		—

Morley Enhanced Income		5,007,108		—		5,007,108		—

Morley Capital Accumulation		18,735,742		13,503		18,749,245		—

[Additional columns below]

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


			Total
	Return of		Distributions
Fund	Capital		Paid


Growth	$	—	$	110,403

Large Cap Value		—		225,175

Nationwide		—		10,820,137

Mid Cap Growth		—		83,377

Small Cap		—		562,665

Aggressive		—		2,367,184

Moderately Aggressive		—		5,002,066

Moderate		—		7,006,786

Moderately Conservative		—		2,521,331

Conservative		—		1,955,277

Bond		—		6,219,460

Government Bond		—		12,286,194

Tax-Free Income		—		8,534,881

Money Market		—		10,841,503

Morley Enhanced Income		—		5,007,108

Morley Capital Accumulation		—		18,749,245

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
			Term
	Ordinary		Capital		Total Taxable		Tax Exempt
Fund	Income		Gains		Distributions		Distributions


Growth	$	—	$	—	$	—	$	—

Large Cap Value		265,045		—		265,045		—

Nationwide		12,278,389		—		12,278,389		—

Mid Cap Growth		—		—		—		—

Aggressive		824,793		—		824,793		—

Moderately Aggressive		2,020,165		—		2,020,165		—

Moderate		3,388,294		—		3,388,294		—

Moderately Conservative		1,342,809		—		1,342,809		—

Conservative		1,266,359		—		1,266,359		—

Bond		7,589,935		—		7,589,935		—

Government Bond		10,868,647		2,788,828		13,657,475		—

Tax-Free Income		21,005		—		21,005		9,201,358

Money Market		14,043,059		—		14,043,059		—

Morley Enhanced Income		3,745,157		—		3,745,157		—

Morley Capital Accumulation		10,522,121		—		10,522,121		—

[Additional columns below]

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


			Total
	Return of		Distributions
Fund	Capital		Paid


Growth	$	—	$	—

Large Cap Value		—		265,045

Nationwide		—		12,278,389

Mid Cap Growth		—		—

Aggressive		84,159		908,952

Moderately Aggressive		6,702		2,026,867

Moderate		—		3,388,294

Moderately Conservative		—		1,342,809

Conservative		—		1,266,359

Bond		—		7,589,935

Government Bond		—		13,657,475

Tax-Free Income		—		9,222,363

Money Market		—		14,043,059

Morley Enhanced Income		—		3,745,157

Morley Capital Accumulation		—		10,522,121

2004 Annual Report 159


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series

As of October 31, 2004, the components of accumulated earnings (deficit) on a tax basis was as follows:


	Undistributed		Undistributed		Undistributed							Accumulated
	Tax Exempt		Ordinary		Long-Term		Accumulated		Distributions			Capital and
Fund	Income		Income		Capital Gains		Earnings		Payable			Other Losses


Growth	$	—	$	43	$	—	$	43	$	—		$	(283,722,441	)

Large Cap Value		—		26,173		—		26,173		—			(979,118	)

Nationwide		—		554,054		6,053,403		6,607,457		—			—

Mid Cap Growth		—		—		165,112		165,112		—			—

Small Cap		—		—		3,107,190		3,107,190		—			—

Aggressive		—		—		—		—		—			(1,167,194	)

Moderately Aggressive		—		95,961		52,876		148,837		—			—

Moderate		—		580,305		562,563		1,142,868		—			—

Moderately Conservative		—		290,114		196,919		487,033		—			—

Conservative		—		268,056		712,241		980,297		—			—

Bond		—		450,659		—		450,659		(459,242	)		(4,009,877	)

Government Bond		—		562,117		—		562,117		(543,488	)		(916,878	)

Tax-Free Income		531,905		—		—		531,905		(688,291	)		(591,819	)

Money Market		—		1,638,246		—		1,638,246		(1,638,244	)		(10,183	)

Morley Enhanced Income		—		617,965		—		617,965		(611,083	)		(5,485,653	)

Morley Capital Accumulation		—		723,867		—		723,867		(774,223	)		(569,688	)

[Additional columns below]

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


				Total
	Unrealized			Accumulated
	Appreciation			Earnings
Fund	(Depreciation)*			(Deficit)


Growth	$	6,768,148		$	(276,954,250	)

Large Cap Value		4,043,014			3,090,069

Nationwide		71,584,732			78,192,189

Mid Cap Growth		398,821			563,933

Small Cap		(49,839	)		3,057,351

Aggressive		30,248,660			29,081,466

Moderately Aggressive		46,042,197			46,191,034

Moderate		36,911,823			38,054,691

Moderately Conservative		8,025,044			8,512,077

Conservative		2,208,046			3,188,343

Bond		7,060,338			3,041,878

Government Bond		4,024,553			3,126,304

Tax-Free Income		15,575,291			14,827,086

Money Market		—			(10,181	)

Morley Enhanced Income		(1,156,079	)		(6,634,850	)

Morley Capital Accumulation		—			(620,044	)


*	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)


Growth	$	258,777,549	$	16,866,247	$	(10,098,099	)	$	6,768,148

Large Cap Value		22,829,604		4,738,937		(695,923	)		4,043,014

Nationwide		1,629,854,650		131,435,966		(59,851,234	)		71,584,732

Mid Cap Growth		2,967,943		514,957		(116,136	)		398,821

Small Cap		30,820,296		1,732,550		(1,682,711	)		(49,839	)

Aggressive		323,667,078		39,327,824		(9,079,164	)		30,248,660

Moderately Aggressive		561,307,848		49,731,196		(3,688,999	)		46,042,197

Moderate		607,352,801		42,618,413		(5,714,373	)		36,911,823

Moderately Conservative		170,847,010		9,873,047		(1,848,003	)		8,025,044

Conservative		121,336,427		3,387,475		(1,179,429	)		2,208,046

Bond		131,098,913		7,498,869		(438,531	)		7,060,338

Government Bond		174,891,909		4,368,833		(344,280	)		4,024,553

Tax-Free Income		174,261,658		15,719,722		(144,431	)		15,575,291

Morley Enhanced Income		322,276,846		418,443		(1,574,522	)		(1,156,079	)

160 Annual Report 2004

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


Fund	Amount		Expires


Growth	$	203,843,102		2009

Growth		71,971,609		2010

Large Cap Value		979,118		2011

Aggressive		575,335		2009

Aggressive		591,859		2011

Bond		1,655,181		2008

Bond		813,853		2009

Bond		1,540,843		2010

Government Bond		916,878		2012

Tax-Free Income		83,587		2007

Tax-Free Income		233,248		2008

Tax-Free Income		274,984		2011

Money Market		1,238		2008

Money Market		7,994		2010

Money Market		951		2012

Morley Enhanced Income		181,706		2008

Morley Enhanced Income		896,348		2009

Morley Enhanced Income		1,947,216		2010

Morley Enhanced Income		952,689		2011

Morley Enhanced Income		1,507,694		2012

Morley Capital Accumulation		569,688		2012

As of October 31, 2004, the following fund have 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 Gartmore Large Cap Growth Fund:


Fund	Amount		Expires


Growth	$	5,271,820		2008

Growth		1,317,955		2009

Growth		1,317,955		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.

2004 Annual Report 161


	Notes to Financial Statements (Continued)
	October 31, 2004

Core Series

For the period ended October 31, 2004, the following Funds paid qualified dividend income:


Fund	Qualified Dividend Income


Large Cap Value	$	225,175

Mid Cap Growth		3,932

Nationwide		10,820,137

Aggressive		2,219,962

Moderately Aggressive		3,773,344

Moderate		2,959,008

Moderately Conservative		585,472

Conservative		194,226

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:


Fund	Dividends Received Deduction


Growth		100%

Large Cap Value		100%

Nationwide		100%

Mid Cap Growth		7%

Aggressive		78%

Moderately Aggressive		52%

Moderate		33%

Moderately Conservative		18%

Conservative		8%

162 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 Growth Fund, Gartmore Large Cap Value Fund, Gartmore Nationwide Fund, Gartmore Mid Cap Growth Fund, Gartmore Small Cap Fund, Gartmore Investor Destinations Aggressive Fund, Gartmore Investor Destinations Moderately Aggressive Fund, Gartmore Investor Destinations Moderate Fund, Gartmore Investor Destinations Moderately Conservative Fund, Gartmore Investor Destinations Conservative Fund, Gartmore Bond Fund, Gartmore Government Bond Fund, Gartmore Tax-Free Income Fund, Gartmore Money Market Fund, Gartmore Morley Enhanced Income Fund and Gartmore Morley Capital Accumulation Fund (sixteen 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 then ended, the changes in each of their net assets 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, the transfer agent and brokers, provide a reasonable basis for our opinion. The financial highlights of Gartmore Growth Fund, Gartmore Large Cap Value Fund, Gartmore Nationwide Fund, Gartmore Small Cap Fund, Gartmore Investor Destinations Aggressive Fund, Gartmore Investor Destinations Moderately Aggressive Fund, Gartmore Investor Destinations Moderate Fund, Gartmore Investor Destinations Moderately Conservative Fund, Gartmore Investor Destinations Conservative Fund, Gartmore Bond Fund, Gartmore Government Bond Fund, Gartmore Tax-Free Income Fund, Gartmore Money Market Fund, Gartmore Morley Enhanced Income Fund and Gartmore Morley Capital Accumulation 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 163


	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

164 Annual Report 2004

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
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 165


	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
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, 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.
**		This position is held with an affiliated person or principal underwriter of the Funds.
		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.

166 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		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
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”),⁴Gartmore Investor Services, Inc. (“GISI”),⁴Gartmore Morley Capital Management, Inc. (“GMCM”),⁴Gartmore Morley Financial Services, Inc. (“GMFS”),⁴NorthPointe Capital, LLC (“NorthPointe”),⁴Gartmore Global Asset Management Trust (“GGAMT”)⁴, Gartmore Global Investments, Inc. (“GGI”)⁴, Gartmore Mutual Fund Capital Trust (“GMFCT”) ⁴and Gartmore SA Capital Trust (“GSA”)⁴; and a Director of Nationwide Securities, Inc.⁴, as well as several entities within Nationwide Financial Services, Inc.		84³	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 167


	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		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
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, GMFCT³and GSA³since 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 Leaders Long-Short Fund LDC, four private investment companies (hedge funds) managed by GSA.
**		This position is held with an affiliated person or principal underwriter of the Funds.
		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.

168 Annual Report 2004

Index Definitions

The Gartmore Investor Destinations Aggressive Fund benchmark consists of 40% S&P 500 Index, 30% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index, 15% S&P MidCap 400 Index, 10% Russell 2000® Index and 5% Lehman Brothers U.S. Aggregate Bond Index.

The Gartmore Investor Destinations Moderately Aggressive Fund benchmark consists of 35% S&P 500 Index, 25% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index, 15% Lehman Brothers U.S. Aggregate Bond Index, 15% S&P MidCap 400 Index, 5% Citigroup 3-Month T-Bill Index and 5% Russell 2000® Index.

The Gartmore Investor Destinations Moderate Fund benchmark consists of 30% S&P 500 Index, 25% Lehman Brothers U.S. Aggregate Bond Index, 15% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index, 15% Citigroup 3-Month T-Bill Index, 10% S&P MidCap 400 Index and 5% Russell 2000® Index.

The Gartmore Investor Destinations Moderately Conservative Fund benchmark consists of 35% Lehman Brothers U.S. Aggregate Bond Index, 25% Citigroup 3-Month T-Bill Index, 20% S&P 500 Index, 10% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index, and 10% S&P MidCap 400 Index.

The Gartmore Investor Destinations Conservative Fund benchmark consists of 45% Citigroup 3-Month T-Bill Index, 35% Lehman Brothers U.S. Aggregate Bond Index, 10% S&P 500 Index, 5% Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index, and 5% S&P MidCap 400 Index.

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).

iMoneyNet First Tier Retail Index: An unmanaged index that is an average of non-government retail money market mutual funds that do not invest in any second-tier securities. Portfolio holdings of first-tier money market mutual funds include U.S. Treasury, U.S. other, repurchase agreements, time deposits, domestic and foreign bank obligations, first-tier commercial paper, floating-rate notes and asset-backed commercial paper.

Lehman Brothers Government/Credit Bond Index: An unmanaged index of U.S. government and investment-grade corporate bonds with at least one year to maturity; gives a broad look at how the prices of these securities have performed.

Lehman Brothers Municipal Bond Index: An unmanaged index that gives a broad look at how the prices of municipal bonds have performed; includes approximately 15,000 municipal bonds that are rated Baa or better by Moody’s and have a maturity of at least two years.

Lehman Brothers U.S. Aggregate Bond Index: An unmanaged, market value-weighted index of investment-grade, fixed-rate debt issues (including government, corporate, asset-backed, and mortgage-backed securities with maturities of one year or more) that is generally representative of the bond market as a whole.

Lipper Money Market Fund Index: An unmanaged, equally weighted index that measures the performance of a broad group of taxable money market funds having a constant market price of $1 per share; consists of the largest 30 funds within the general money market funds investment objective as defined by Lipper Inc.

Lipper Ultra-Short Bond Fund Index: An unmanaged index that consists of fixed-income funds having very short durations (average maturity of between 91 and 365 days), relatively little market price sensitivity to changes in interest rates, and at least 65% of their assets in investment-grade debt instruments.

Merrill Lynch Government Master Index: An unmanaged index that gives a broad look at how U.S. government bonds have performed.

Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE®) Index: An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada.

Russell 1000® Growth Index: An unmanaged index that measures the performance of the stocks of U.S. companies in the Russell 1000® Index (the largest 1,000 U.S. companies, based on market capitalization) with higher price-to-book ratios and higher forecasted growth values.

Russell 1000® Value Index: An unmanaged index that measures the performance of the stocks of U.S. companies in the Russell 1000® Index (the largest 1,000 U.S. companies, based on market capitalization) with lower price-to-book ratios and lower forecasted growth values.

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 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 (S&P) MidCap 400 Index: An unmanaged index that measures the performance of 400 stocks of medium-sized U.S. companies.

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.

(GARTMORE LOGO)

Gartmore Funds
1200 River Road, Suite 1000
Conshohocken, PA 19428
www.gartmorefunds.com

Federal law requires the Trust, and each of its investments 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.

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.

Nationwide Small Company Growth Fund (NWSAX) N-CSRCertified annual shareholder report (management investment company)