Fund managers believe Irish equities have several advantages over their international counterparts.

Gervais Williams, manager of Gartmore's £308 million UK & Ireland smaller companies fund, talks enthusiastically about the prospects for the Irish economy and its leading quoted companies.

"In the current environment, where everyone is searching forvalue, Ireland is well-placed. Irish equities are not expensive compared with other parts of the euro zone," says Mr Williams.

"The Irish economy has had a pretty good run in the last ten years."

High on the list of attributes of the Irish economy is its youth and birth rates are high compared with other parts of Europe

Immigrants are pouring in looking for work, as are businesses, hoping to take advantage of the low corporate tax rates. "The Irish economy is growing at a premium rate," he says.

One possible drawback is rising interest rates, which may drag down company profits across a range of sectors. "Rising interest rates will definitely take the edge off the property market, so we don't have much exposure there," says Mr Williams.

As a stockpicker, Irish financial stocks and gas groups are of interest to Mr Williams.

Only about 10 per cent of Gartmore's UK & Ireland Smaller Companies fund is invested in Irish stocks. About 89 per cent of it is in UK stocks. Top Irish holdings include Kenmare Resources, a resources exploration group, and CPL Resources, a staffing company.

Last year, an overweight position in CPL boosted the fund's performance as its profits in the first half of the year rose sharply.

About 26 per cent of Gartmore's fund, which has about 253 holdings, is in industrial groups, about 20 per cent in technology groups and about 11 per cent in financial stocks.

A further 9 per cent is in oil and gas companies and about 6.6 per cent in basic material groups.