By Mark Preskett A strong Irish economy that has helped fuel a 10-year equity market boom should he...
By Mark Preskett
A strong Irish economy that has helped fuel a 10-year equity market boom should help generate further positive returns from the region, according to Gervais Williams, manager of the Gartmore Irish Growth trust.
Williams pointed to two positives that remain in place today and have helped his trust deliver 735.6% share price growth over 10 years to 28 February 2007.
"Irish demographics are still good, with a young population coming through," he said. "Immigration also remains strong and all this is positive for economic growth.
"In addition, there has been a policy of reducing corporation tax to encourage inward investment so young people stay in Ireland."
Williams said he believes Ireland remains competitive, with wage growth modest and costs low.
"The Irish Government has pledged to spend d184bn on an investment programme to develop capital roads, social housing and infrastructure projects," he said.
"National debt has almost disappeared and valuations are still inexpensive."
"P/E is forecast at 14 times in 2007 falling to 12.4 times on 2008 consensus expectations."
Gartmore Irish Growth was founded by Williams in 1995 and has grown to £133m in assets under management.