Ireland’s Guide To Money And Living

Pension Funds Lose Ground

Irish pension funds gave back some of the gains made over the past three months with negative performances over the month of May, according to the latest analysis from Rubicon Investment Consulting.

The average managed fund returned -2.8 per cent for the month. Standard Life Investments took top spot with a return of -1.9 per cent for the month, while Irish Life Investment Managers propped up the league table with a -3.9 per cent return. In spite of this, the average managed fund has advanced 3.8 per cent over the first five months of the year, with returns ranging from a high of 5.3 per cent (Standard Life Investments) to a low of 2.2 per cent (Aviva Investors).

“Over the past 12 months, all of the managed funds surveyed delivered double-digit growth, with the average fund returning 20.0 per cent. Returns for the past year ranged from 23.1 per cent (Standard Life Investments) to 17.2 per cent (AIB Investment Managers),” wrote Fiona Daly, managing director of Rubicon Investment Consulting.

“The average managed fund return has been a very disappointing -8.8 per cent per annum over the past three years. The five year returns to the end of May are mostly positive, with an average return of 0.8 per cent per annum over this period. Irish group pension managed fund returns over the past 10 years have been a disappointing 0.6 per cent per annum on average, well below the Irish inflation rate of 2.5 per cent per annum over the same time horizon,” she continued.

“Indeed, none of the managed funds surveyed outperformed inflation over this period, while four of the ten funds failed to deliver positive returns over 10 years.