Pension funds report strong growth in first half

Average fund delivers return of 6.1% and is on track for another year of double-digit investment gain

Fri, Jul 4, 2014, 17:28

Pension funds have reported continuing strong growth in the first half of the year, with the average managed fund delivering an investment gain of 6.1 per cent.

That puts Irish pensions on course for another year of double-digit returns. The average fund added 15.8 per cent last year, with the top performer, Standard Life Investments, reporting a gain of 18.2 per cent in the 12 months, according to data from Rubicon Investment Consulting.

Performance in 2014 has been skewed towards the second quarter, when funds added 4.1 per cent on average. Advance Investment Managers (formerly Prescient) and Setanta Asset Management were the strongest performers last month, both gaining 1.7 per cent. At the other extreme, Irish Life Investment Managers and Zurich Life reported a rise of 0.7 per cent.

The recovery from the property crash has been reflected in pensions with sustained growth in recent years. The average managed fund return has been 11.5 per cent per annum over the past three years and 11.9 per cent over each of the five years from July 2009.

However, the effects of the crash are still evident in the 10-year figures, which show a more modest annual growth of 5.4 per cent.