July boost sees pension funds recover some lost ground

INVESTORS GOT a brief respite from continuing market turmoil in July when pension funds recovered some lost ground, buoyed by rising global equities and euro zone bonds.

After declines in both May and June, the average Irish managed fund returned 2.2 per cent in July, according to statistics compiled by Rubicon Investment Consulting.

Setanta Asset Management was the top performer in the month, advancing by 3.2 per cent, followed by Irish Life Investment Managers, which was up by 2.7 per cent.

At the other end of the table was Eagle Star/Zurich Life, which only managed to pick up a 1.2 per cent return.

In the year to date, the average managed fund is up by 4.2 per cent, with Standard Life the best over this time period, having advanced by 5.9 per cent. Aviva Investors is the worst, with a return of just 2.8 per cent.

The boost in July means that over the past 12 months, average returns are in the double figures, at 13.5 per cent, with returns ranging from 16.5 per cent at Standard Life, to 11.7 per cent at AIB Investment Managers.

However, despite the improvement in performance in July, returns among Irish pension funds remain poor over a longer time period, with the average fund returning just 0.5 per cent over a 10-year period.

“None of the managed funds surveyed outperformed inflation over this period, while four of the 10 funds failed to deliver positive returns over 10 years,” noted Fiona Daly, managing director of Rubicon Investment Consulting.

Best of the bunch is Eagle Star/Zurich Life, with an average annual return of 1.8 per cent. Of those in the red, KBC Asset Management is the most notable, having lost 1.7 per cent on average each year.

Also in the negative over this time period are Friends First, Aviva Investors and AIB Investment Managers.