Previous Story
Slower market predicted in ’06
|
Posted on Nov 10 2005
Investment returns in 2006 may not be as good as this year and in 2004 in view of the slowdown in the U.S. economy, Merrill Lynch said this week.
“Outlook for next year is it won’t be as good as last year just because the U.S. economy is slowing down. There’s a concern about inflation,” said Patrick M. McFadden, Merrill Lynch vice president/account executive, during the NMI Retirement Fund money managers’ meeting Tuesday.
He said, though, that all the money managers handling the Fund’s portfolio are all apprised of what is going on in the market.
The Fund has some $421 million in the stock market.
McFadden said that so far, “there have been no dramatic changes in the stock market.”
“The reports from the money managers are very, very positive,” he added.
NMI Fund board chair Joseph Reyes said the agency is optimistic about its investments for next year.
“We have to be optimistic. The market is very volatile. It goes up and down but we have safeguards,” he said, adding that the Fund’s investments are diversified.
McFadden said there are no particular concerns right now on the money managers’ performance. Merrill Lynch oversees the activities of each money manager and submits reports to the Fund regularly.
The Fund board earlier expressed satisfaction with the “sound strategies” of the money managers, resulting in the 8.4 percent return of investments so far this year.
The Fund’s investments are handled by Atalanta, Sabre, S&P 500 Idex Fund, Stratem, Renaissance, Nicholas-Applegate, Gabelli, EAFE ETF, Templeton, Provident, and IRM.
The Fund’s large capital equities represent 50 percent of its investment while small cap represents 13 percent.
International equities and fixed income represent 13 percent each. TIPS or Treasury Inflation-Protected Securities reflects 5 percent of total investments, while cash assets are at 4 percent.
