Bank of Ireland projects 15-20% returns from equity markets over the next 12-18 months

- investors advised to concentrate on buying quality stocks

Bank of Ireland Private Banking (Friday 28 September 2007) said that recent turbulence in equity markets now presents a compelling buying opportunity for private investors. It is confident that returns of between 15-20% are achievable over the next 12-18 months from global equity markets but warns that investors must be cautious of the opportunities presented.

Speaking at a media briefing Kevin Quinn, Director, Bank of Ireland Private Banking said: "Recent market volatility has caused many potential investors to take a long hard look at equity markets. It is our strongly held belief that this recent volatility has led to an opportunity that private investors cannot ignore. With valuations both in Ireland and in international markets nearing multi-year lows, our view is that most investors should be considering equities at this stage as there is substantial upside from these levels.

"The recent credit market turmoil may be a catalyst for a flight to quality. There are aspects of current market conditions of which private investors need to be very mindful, as the rules of the game may be changing. As risk is re-priced investors may look to the safer, less leveraged parts of the market and quality will become a watchword. An excellent example of this in the recent past was the huge appetite for highly leveraged products that offered impressive returns but also harboured significant risk. Certain of these products e.g. CFD's were unable to withstand the recent market volatility and some investors have suffered significant losses as a consequence.

"With Banking of Ireland Private Banking, our policy was, and still is, that the risk on these products outweighed the potential return and we never recommended investment in such propositions. We viewed much of this as speculating rather than investing and we were always uncomfortable recommending them to our clients because of the associated risks. However we believe that there is an enormously compelling reason for the long-term investor to enter the market right now - principally cheap valuation and continued earnings growth. Our advice now is to buy with a 12 to 18 month time horizon and beyond. I would equally advise clients to continue to avoid CFD's and other riskier parts of the market as continuing volatility may be just too damaging", added Kevin Quinn.

In a move designed to provide its clients with an enhanced range of investment opportunities Private Banking is launching a suite of new and existing equity products designed to appeal to all risks/return appetites.

New Global equity multi-manager fund: Private Banking introduces its new Global equity multi-manager fund, providing access to a selection of the world's leading equity managers.

Newgrange Fund; A specialised fund launched at the end of '06 and managed by Chris Reilly, Ireland's most experienced investment manager will be open for a further €50m investments until December '07 when the fund will close to new monies.

Two Irish opportunities: Private Banking plans to launch a bond linked to the performance of the top 10 Irish stocks and will continue to offer its Irish equity fund within the multi-manager range.

"Ranging from concentrated stock portfolios through to our Irish market linked bond, we have a range of investment alternatives that can meet the requirements of a variety of clients of differing risk appetites", concluded Kevin Quinn.

Ends

For further information contact:

Anne Mathews
Media Relations Manager
Group Corporate Communications
Bank of Ireland
Tel:01 604 3836 or 087 246 0358