PENSION funds enjoyed a substantial recovery in 1995 with the average Irish pension increasing in value by over 17 per cent, according to two annual surveys of results. Over five years - a better period in which to assess the overall performance of various fund managers - returns averaged about 13.2 per cent. Inflation averaged 2.4 per cent over the same period.

The best performing pension fund over the past year was recorded by ESB Fund Managers with a return of 23.0 per cent; the poorest performer was Equitable Life with a return of 14.9 per cent. The top performer over five years has been Bank of Ireland Asset Managers (15.2 per cent) followed by Standard Life (14.5 per cent) and Ulster Bank investment Managers (14.2 per cent) while over a longer, 10 year period, New Ireland was the top ranking fund manager (14.1 per cent).

The Actuaries and Consultants, Mercers, who with Irish Pensions Trust produced the surveys, note that the five year results "are somewhat deceptive in that they exclude 1990 which was a poor year for pension fund investors." When 1990 is included in the review, the results for the decade so far drop to an average return of 8.5 per cent per annum. Inflation over the same period was 2.5 per cent for a year return of 6 per cent.

Managed funds are essentially mixed portfolios of unit linked investments made up of mainly equities, gilts (Government stock), property and cash. Value wise, they represent the largest of all investment funds.