Pension funds returned to the black last year, recording average gains of 14.4 per cent over the year, according to data released yesterday.

Generally strong global stock market gains and improved bond market performance offset continuing weakness in the property sector. The best-performing managed fund return last year came from Standard Life Investments, which recorded growth of 17.5 per cent, Rubicon Investment Consulting reported. However, even the poorest return – the 12.9 per cent growth recorded by Zurich Life – was well ahead of inflation for 2012.

All providers ended the year on a positive note, with average growth in December of 1.1 per cent.

Over the past three years, Irish pension funds have averaged growth of 7.1 per cent per annum, despite losses in the sector in 2011.

Over five years, the market returned negative growth of 0.5 per cent each year on average.