Irish pensions improve in 2003 but still down over three years

Irish pension funds have recovered throughout 2003, with the average managed fund return up 12.3%.

This was mainly due to the double digit returns of global equity market and brought some relief to the Irish pensions industry, Tom Murphy the head of Mercer Investment Consulting said.

However, while the recovery was welcomed by Mercer's, they also cautioned that the average managed fund is still down 5% for the three years ending December 2003.

Murphy said today: "2003 certainly was a welcome reprieve from three previous years of consecutive negative equity markets. The average managed fund return was up 12.3% and this has brought much welcome relief to all those involved in the Irish pensions industry.

"With assets underperforming and liabilities rising faster than expected, this double blow has left the majority of pension funds in a precarious funding position, with many now embarking on a series of funding proposals to the Pensions Board."

Delegates heard the news at Mercer's annual investment conference held in Dublin today.