ILIM Market Review - End March 2024
- Latest Weekly Market Review
- 04.04.24
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Quarter in Review Q1 2024
Each quarter, Lenny McLoughlin, Chief Investment Strategist sifts through market noise to pinpoint the key themes that have influenced markets – and impacted your investments. Lenny also shares his insights on the forces shaping markets in the short-to-medium term.
Insights
Pension Irish Property Fund - Quarter 4 2023
The steady rise in European Central Bank (ECB) interest rates from July 2022 (0.0%) to September 2023 (4.50%) led to a contraction in investment activity into property, which is heavily reliant on debt financing and investor sentiment. This perpetuated a rise in valuation yields across all property sectors, having a negative impact on values. The MSCI All Property Ireland Index equivalent yield moved out 1.0% in the 18 months to December 2023, from 5.5% to 6.6%. The spread of property yields to government bonds therefore improved by 0.73% to 4.3%, thereby increasing the relative attractiveness of property yields.