NCB Stockbrokers portfolio manager Mr Nigel Poynton considers direct investment in the equity market suitable for investors who want a medium- to high-risk investment. NCB has a Top 20 Share Portfolio, which is split roughly 50 per cent Europe (including the Republic), 35 per cent US and 15 per cent Britain. The only two Irish stocks recommended are CRH and pharmaceutical multinational Elan.
For the low-risk investor he recommends the Hibernian Celebration Fund. For a medium- to high-risk investment, he recommends Hibernian Life & Pensions Spectrum Bond, a unit-linked product that gives access to a range of managed, equity and property funds under a portfolio structure.
Davy Stockbrokers director of investment services Mr Brian Weber recommends a range of equities, investment trusts and a technology index tracker. He says the American Stock Exchange Technology Index Tracker, which tracks the top 88 US technology stocks on both the Big Board and Nasdaq, is a lower risk than investing in the Nasdaq tracker alone.
On equities, he recommends buying a range of blue chips in Europe, the US and Britain. In the Republic, he likes CRH, Irish Life & Permanent, and Kerry Group. He says IAWS is worth keeping an eye on as it has good growth potential.
Mr Weber says investment trusts such as Gartmore European Investment Trust are also worth considering. The Gartmore fund invests in blue chips in continental Europe. A slightly higher risk and more aggressive investment trust is the TR European Growth Trust.
For lower-risk investments he suggests unitised products such as Friends First or Commercial General Norwich Union with-profit bonds, as they have guarantees attached.
Goodbody Stockbrokers says the benefit of direct investment is that it offers flexibility and is more transparent in terms of costs. To get a good spread of stocks, an investor would ideally need an investment of around £50,000 (€63,500).
For those with smaller amounts at their disposal, some form of managed fund is preferable, so as to get sufficient diversity. There are additional costs involved in this option and less transparency.
In the Irish market, Goodbody favours both AIB and Bank of Ireland as safe plays with a wide spread of interests. CRH, once again, is tipped as a favourite, as is food stock Kerry.
Mr John Maguire, partner in Bloxham Stockbrokers, also has CRH high on his list in the Irish market, which he believes is a well-managed company with a good geographic spread and considerable exposure to the strong dollar. In the financial sector, he recommends Bank of Ireland and Irish Life & Permanent. He does not rule out the troubled technology sector. Iona Technologies, which recently produced good figures, is worth a look, as is Parthus, which he says is a little overdone at current levels.
