Posted on 03/20/2004 10:32:52 PM PST by Murtyo
THE celebrations this week in Ireland might not only be for their national patron, St Patrick but also for the booming economy. Fortunately, there are several funds which allow investors here to share in their success.
Ireland is Europe’s fastest growing economy: over the past decade it has seen real growth of 114 per cent in comparison with 32.9 per cent in the UK. Favourable demographics, a flexible labour market, low corporation tax and a pro-business environment have all contributed to the Celtic success.
Gartmore Irish Growth is an investment trust fully focused on the Irish market. Launched nine years ago, it aims for long-term capital growth. In the past five years, its net asset value has risen 15 per cent per annum compared with the 9.9 per cent and minus 0.3 per cent, both in sterling-adjusted terms, notched up by comparable funds Davy Mid-Cap and ISEQ indices, respectively.
The fund is managed by Gervais Williams, a noted specialist on Irish companies. The portfolio holds 33 quoted stocks with the largest 20 companies representing 94 per cent of the investment. In the past year, net assets have increased more than 96 per cent. Last month Gartmore announced it was repurchasing up to 40 per cent of the share capital as the fund manager Jupiter, which holds 32 per cent of issued share capital, wishes to reduce its holding.
If looking for a sizeable interest in the Irish economy, the ISIS European Assets Trust has 26.2 per cent invested there. Crispin Longden manages the fund from Edinburgh. He previously managed European equities at Scottish Life.
Last year its assets rose 48.5 per cent in total return terms. The fund concentrates on smaller companies, such as Anglo Irish Bank, the IAWS Group with convenience foods, Paddy Power (online betting) and Ryanair. Outside Ireland, its main interests are France, Italy and Spain.
For ISA investors, ISIS is the only company offering no plan fees on its wrapper arrangements for investment trusts.
New Star European Growth has 25.3 per cent invested in Ireland. After charges and taking dividends into account, it has increased 34.7 per cent in the past 12 months, according to research group Lipper. Richard Pease, who was at Jupiter for 12 years, manages the fund, taking business models first and then selecting well-managed companies that fit his criteria.
The Jurys Doyle Hotel group is such an example. Based in Dublin, this major hotel chain has properties in Ireland, the UK and the US, and is rapidly expanding with a three-star inn concept. If the anticipated growth in tourism in the Republic materialises, then it should be well positioned.
For a combination of British and Irish stocks, Gartmore offers a UK and Irish Smaller Companies fund with more than 8 per cent in Ireland. Over five years, this open-ended investment company has grown more than 98 per cent. It has been running almost ten years and has attracted more than £288 million. The major holdings are in cyclical services, IT and financial companies. Fund managers Rob Giles and Gervais Williams aim to provide capital and income growth.
They expect "the renaissance of the smaller companies sector to be sustained in the months ahead" and there to be "a plentiful supply of companies offering genuine growth prospects".
Among this fund’s major holdings is Irish Continental, at almost 7 per cent of the portfolio. It is a fast-growing ferry operator, which provides freight and passenger services.
Other stocks selected include the Kerry Group, Ireland’s foremost food producer and distributor, and Bank of Ireland. Among other funds with a significant Irish holding, look at EP Global Opportunities (managed by Edinburgh Partners), Invesco Perpetual European, Henderson Global’s TR European Growth and Independent Investment Trust.
I am surprised the EU hasn't forced them to "equalize" their taxes... although I know they want to.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.