Strong equity markets helped managed pension funds bounce back in September, with the average Irish fund gaining 3.4 per cent. The performance brought gains in the third quarter to 5.7 per cent on average.

AIB Investment Managers (AIBIM) led the way last month with a gain of 4 per cent, narrowly ahead of Eagle Star (3.9 per cent). Over the quarter, Montgomery Oppenheim recorded the best returns, growing its fund by 6.9 per cent.

Bank of Ireland's recent woes continued as its asset management business (BIAM) was among the bottom two performers in every period up to and including the three-year period. The only fund to rival it was New Ireland, which is also owned by the bank.

However, over the five-year timeframe, BIAM remains the top performer with annual returns of 3.6 per cent compared to an industry average of 1.4 per cent.

A couple of funds are still reporting negative returns over the five-year period, most notably KBC Asset Managers which is still reporting average annual losses of 1.7 per cent.

AIBIM is also in the red, averaging losses of half a per cent a year over the last five years.

AIB and KBC are also lagging on the 10 and 15-year measures which are more significant for long-term pensions investment. Over 10 years, Montgomery Oppenheim tops its rivals with an annual return of 12.7 per cent compared to an average of 10.1, while Eagle Star's 14.6 per cent annual growth each year over the past 15 years is significantly ahead of BIAM in second place with 12 per cent a year and the industry average of 11.4 per cent.

Anita Graham at benefits consultant Hewitt said fund managers overweight in Irish equities suffered in the third quarter as the Iseq underperformed rival markets.

BIAM was also hit by avoiding Elan, the top performing share in the Irish market.