Irish pension funds have got off to a strong start this year, with the average managed fund gaining 5.4 per cent in the first quarter.
According to Mercer investment consultants, Oppenheim Investment Managers Managed Fund topped the table over the quarter, rising 6.4 per cent, closely followed by Eagle Star's Balanced Fund and AIBIM's Multi-manager Managed Fund, both returning 6 per cent.
Over the longer term, which is a better performance gauge, Eagle Star's Balanced Fund was the top performer, returning 6.4 per cent per annum, while KBCAM's Managed Fund (+2.8 per cent per annum) underperformed over this period.
Over ten years, the average Managed Fund returned 10.1 per cent per annum, comfortably exceeding the corresponding inflation rate of 3 per cent.
New Ireland's Managed Fund was the top performer over this period returning 11.4 per cent per annum. followed by the Hibernian Managed Fund, which returned 10.7 per cent.
Buoyant equity markets in the leading economies were the main contributors to performance in the first quarter of 2006.
Despite concerns of a slowdown the US economy continued to do well while Europe showed signs of the long awaited recovery.
In terms of global sectors, basic materials strongly outperformed (+10.3 per cent) in the first quarter, followed by Industrials (+6.6 per cent).
Healthcare (0.2 per cent) was the poorest performing sector during the quarter. Resources returned 5.9 per cent as oil prices stabilised somewhat, but supply concerns remain. This is a marked slowdown from the return of 53 per cent achieved by resources in 2005.