Fund managers ‘underperformed’

PENSION and investment consultants Hewitt & Becketts said all Irish fund managers under performed last year based on the new index it has developed.

All of the 22 Irish funds failed to match or beat the new benchmark called the Hewitt & Becketts Index.

Published for the first time yesterday, the measure found not one pension fund manager in Ireland beat the index over one year. But 12 out of 20 beat the average, or traditional measure.

Reliance on an average measure of funds was outmoded, said Deborah Reidy, director of investment consulting at H&B.

Taking the average as the benchmark means about half the funds will be above, and half below, the measure, she said. Though bad over the 12 months it does not mean Irish fund managers are a disaster. Over a 10-year measure, five out of the 14 managers matched or beating the index.

B&H chief executive Kieran Barry said the new measure is a wake up call to the industry in Ireland.