Pension fund value up 22.6%

THE value of the typical Irish pension fund soared in value by 22.6% over the last 12 months reversing persistently poor returns in recent years.

The latest monthly returns from the Coyle Hamilton Investment Manager’s Survey shows that so far, 2004 has been a relatively good year for the typical pension scheme, as measured by the yardstick of managed fund returns.

“February’s average of 1.3% has meant that the rolling 12-month performance for the average of the funds surveyed is +22.6%, compared to a figure of 12.5% for the calendar year 2003.

“Persistently poor returns in the previous years mean that the three year figure is still negative at - 2.9%, but this is an improvement on the position at the end of 2003 when the three year return was -4.7%.

“Over five years, the average return is back in positive territory, but only marginally so at +1.3%per annum,” the company said.

Coyle Hamilton said that while this change in fortunes is encouraging, the fact is that most pension schemes have underperformed relative to their actuarial benchmarks or the expectations of members.