Fidelity Worldwide Investment taps Irish stocks amid growth

Fidelity Worldwide Investment is trawling Ireland as the economy grows more quickly than anywhere else in the developed world.

The company’s €3.83bn Special Situations Fund is investing in Irish stocks including Bank of Ireland, hotelier Dalata and home builder Cairn Homes, and tapping an economy growing about 7% this year.

The Irish stock index is among the best performers in Europe, gaining more than 28%.

“What we are seeing now is the beginnings of a recognition Ireland is a very attractive place to invest for domestic exposure as well as a place to locate your multinational headquarters,” Matthew Jennings, an investment director at Fidelity’s equities team in the UK, said.

Franklin Templeton led the way by snapping up sovereign debt starting in 2011, while others including Blackstone Group focus on buying real estate assets.

International investors largely dumped Irish stocks from 2008, amid one of the worst real-estate market collapses in history.

The legacy lingers on, with unemployment only recently falling to 8.9% and personal debt among the highest in the eurozone.

The Fidelity fund returned about 11% in the 12 months though November, according to Morningstar.

Bank of Ireland has gained 8.3% this year. London-listed Cairn advanced 20%, while Dalata, which operates more than 40 hotels, jumped more than 70% this year in Dublin.

Mr Jennings said the number of hotels in Dublin is the same as 2010 even with visitor numbers 30% higher over the same period.