Interim Management Statement
25 Juli 2008 - 6:00PM
UK Regulatory
25 July 2008
GARTMORE IRISH GROWTH FUND PLC
INTERIM MANAGEMENT STATEMENT (UNAUDITED)
This interim management statement covers the period from 1 April 2008 to 30
June 2008. It has been produced for the sole purpose of providing information
to the Company's shareholders in accordance with the requirements of the UK
Listing Authority's Disclosure and Transparency Rules. It should not be relied
upon for any other purpose.
Investment Objective
The Company seeks to provide shareholders with long-term capital growth through
investment in quoted companies which are either incorporated in the Republic of
Ireland or Northern Ireland or, if elsewhere, derive the majority of their
turnover or profits from the Republic of Ireland or Northern Ireland.
Manager's Comments
Irish equities suffered another disappointing quarter, with the stock market
sliding sharply in June on growing concerns over the widening impact of the
global credit crunch and the cooling domestic economy. In a difficult
investment environment, the Company has retained a sizable portion of its
assets in cash. At 30 June 2008, this amounted to �12.9 million. In addition,
the agreed offer for Horizon Technology has gone unconditional as to
acceptances, and will bring another �3.1 million into the Company. Together
these amounts comprise about 16% of the Company's NAV.
Over the quarter, our selective favouring of energy companies proved
beneficial, as soaring oil prices supported valuations across the sector. Other
positives included positions in the dairy-foods group, Glanbia, and the drinks
firm best known in the UK for its Magners cider brand, C&C, although the latter
has now been sold. Our exposure to bank stocks remained largely focused on
Allied Irish Banks ("AIB"). We anticipated that AIB's valuation had fallen too
far, given the prospects for the economy. However, towards the end of the
period, following adverse data, we changed our opinion and reduced the holding
in AIB, from 13.9% at 31 March 2008 to 9.0% of net assets at the quarter-end.
Clearly, in the six months to 30 June 2008 returns have been disappointing,
with the NAV of the Company down 9.4%, which compares with a fall in the ISEQ
Index of 19.0% (both in sterling terms). However, Irish equities have now
slipped to levels representing potentially substantial value. Though we
anticipate some further mixed news on the domestic economy in the near term, we
believe that the relatively robust health of the Irish government's finances
should continue to support the country's substantial ongoing infrastructure
spending.
Material Events and Transactions
Over the three months to 30 June 2008 the Company repurchased 277,500 Ordinary
shares at prices ranging from 671p per share to 770p per share excluding
expenses (at discounts to net asset value of between 9.71% and 13.63%).
Subsequent to the end of the period under review, the Company has repurchased
301,000 Ordinary shares at prices ranging from 601p to 658p per share,
excluding expenses (at discounts to net asset value of between 13.29% and
18.91%). The shares in issue now total 12,409,042, none of which are held in
Treasury. The Company will continue, as and when appropriate, to exercise its
powers to buy back shares, with the objective of enhancing the NAV per share
and to provide a degree of liquidity in the quote.
10 Largest Equity Holdings at 30 June 2008:
Company Market value % of net
�'000 assets
Allied Irish Banks 8,865 9.0
DCC 7,684 7.8
Glanbia 7,123 7.3
CRH 4,584 4.7
Total Produce 4,499 4.6
Fyffes 4,400 4.5
ICON 4,212 4.3
IAWS Group 4,125 4.2
Dragon Oil 3,736 3.8
Grafton Group 3,598 3.7
Sectoral Spread of Investments at 30 June 2008:
% of net
assets
Non-Cyclical Consumer Goods 33.7
Cyclical Services 19.8
Financials 11.6
Resources 9.2
Information Technology 6.0
Basic Industries 5.9
General Industrials 1.5
Non-Cyclical Services 0.5
Net current assets 11.8
100.0
Financial Position: As at 30.06 As at 31.03
.08 .08
(unaudited) (audited)
�m �m
Investments 86.5 110.1
Cash and other net current assets 11.6 3.6
Net assets 98.1 113.7
Net assets attributable to Ordinary shares* 98.1 113.7
Pence Pence
Net asset value per Ordinary share* 771.80 875.75p
* Includes current period revenue.
Maximum Exposure Limits
The maximum holding in any single investment (Company or Group) is limited to
15% of gross assets at the time of investment.
Gearing
No loans were drawn down as at 30 June 2008. The Manager is authorised to
borrow up to 25% of shareholders' funds, (gearing) for investment purposes and,
when necessary, for liquidity purposes.
Performance*:
As at % increase/(decrease) over
30.06.08* 3 months 1 year 3 years 5 years 10 years
*
Net asset value per 771.80p (11.9)% (19.6)% 32.6% 168.7% 230.3%
Ordinary
share**
Share price - Ordinary 667.00p (13.9)% (24.2)% 15.9% 166.8% 238.6%
shares
Discount 13.6%
* Source: Thomson Financial Datastream. Basis: Capital performance only, debt
at par.
** Includes current period revenue with effect from 31 March 2008. Prior period
figures are exclusive of current period revenue and are therefore not directly
comparable.
Price and Performance Information:
The Company's Ordinary shares are listed on the London and Irish Stock
Exchanges and the price is published in the Financial Times and The Daily
Telegraph under `Investment Companies'. Real-time share price information is
available on 0906 843 0000 (select menu item 2 and then enter company code
5137). Calls are charged at 60p per minute at all times.
The Company's net asset value is calculated daily and can be viewed on the
London Stock Exchange website at www.londonstockexchange.com and via a link
from the Company's web site at www.gartmoreirishgrowthfund.com.
Further information can be obtained from Gartmore Investment Limited, as
follows:
Free investor helpline: 0800 289 336
Internet address: www.gartmore.co.uk
Email address: helpline@gartmore.com
The information provided in this statement should not be considered as a
financial promotion.
By order of the Board
Capita Sinclair Henderson Limited
Company Secretary
25 July 2008
END
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