SHARES in smaller Irish companies are undervalued, according to Mr Harry Sheridan, who reported a 20 per cent rise in the net asset value of investments by the NatWest Irish Smaller Companies Trust in the ten months to end March.
Asset growth was boosted by the strong growth in the Irish economy according to Mr Sheridan, the chairman of the trust.
The NatWest Irish Smaller Companies Trust was set up in June 1995 when it raised £21.5 million, mainly from institutions to invest in smaller quoted companies incorporated in Ireland, north and south.
The trust's investment policy is to achieve long term capital growth for its shareholders by finding "undervalued situations" which it hopes will benefit from strong growth in the economies of the Republic and the North.
Results for the 10 months show the trust made a capital gain before finance costs and tax of £4.07 million and generated net revenue after management fees and interest but before tax of £313,000.
The trust recorded a return of 19.8p per share. An interim dividend of 0.675p per share, in the form of a foreign income dividend, was declared. The listed investments of the trust had a mid market value of £38.2 million at the end of March.
