Solid returns in first six months: ILIM
The first six months of the year have seen solid returns for investors in financial markets, with pension funds estimated to deliver about 9% for the first half of 2005, according to a report from Irish Life Investment Managers (ILIM).
With an environment for investment markets of low interest rates, low inflation and growing company profits set to continue, the prospects for the balance of 2005 and beyond are good, ILIM said in its Investment Markets: Mid Year Report Card and Outlook.
"The key issues for markets are interest rates and profits and we believe they both remain positive," said author of the report, Eugene Kiernan, Head of Asset Allocation at Irish Life Investment Managers.
Writing in the report Mr Kiernan said: "Our view is that for medium and long term investors, there is greater potential in equities and commercial property rather than cash or bonds, and they remain our assets of choice."
On the prospects for Europe he says: "While Europe continues to lag the league table of leading economies it would be wrong at this stage of the cycle to be to negative on Europe. The key issue will be getting the consumer to spend, as the consumers makes up approx 57% of the European economy and is a vital component of any robust recovery."
