Investors tracking the Iseq index are essentially buying only âsix namesâ in a highly concentrated market, leading to risks if one or two of these run into difficulty, according to Fabio Di Giansante, the Dublin-based head of large-cap European equities at Amundi, Europeâs largest asset management group.
Still, he said, large Irish-listed companies are âhigh growthâ and exposed to some of the investment worldâs biggest âmega trendsâ, including the green agenda, the prospect of incoming US president Joe Biden presiding over massive infrastructure spend, and improving nutrition demands.
Mr Di Giansante declined to identify individual Irish stocks for compliance reasons at Amundi, whose Irish hub is responsible for the management of â¬43 billion of assets and employs 350 people.