Irish pension funds up 12.3% last year

The average Irish Pension Managed Fund gained 5.7% in the final quarter of the year, bringing the annual return for 2003 to 12.3%.

Hibernian Life & the Hibernian (NU) Managed Funds topped the survey, returning 6.4%, with Irish Life Global Access (+4.6%) and Aberdeen (+5.0%) the worst performers against an average return of +5.7%, according to the latest figures published by Mercer Investment Consulting.

Irish Life (+14.9%) and Acorn Life (+13.9%) were the best performing funds over 2003, outperforming the average return of +12.3%.

The biggest underperformers over this period were Standard Life Investments (+11.4%), and Aberdeen Asset Management (+11.5%).

According to Tom Geraghty Senior Investment Consultant with Mercer: "The overall positive double digit returns posted by all managers in the survey, masks somewhat the volatility in performance over the course of the year."

"The average fund fell over the first quarter by 5%, recovering by over 18% since March, initially on the back of the ending of the war in Iraq but sustained by improving economic fundamentals and general market sentiment," Geraghty added.

"Over the 10 year period, the average return is +8.2% per year, which comfortably exceeds the corresponding inflation rate of approximately 3% per annum."