Managed Fund returns down in May

The average Irish Pension Managed Fund was down 4.3% in May, according to the latest figures released by Mercer Investment Consulting today.

This decline leaves the year-to-date performance figure at just 0.7%.

The figures showed that Davy, Setanta and Standard Life were the funds which performed best in May, whilst Eagle Star lead the table so far this year, returning 1.9%.

Over the last three years, Irish Life lead the table with a return of 15.9% p.a., followed by Standard Life returning 15.7% p.a. BIAM and New Ireland have been the poorer performers over this period with returns of 12.3% and 12.5% p.a. respectively.

“Inflation has been moving higher in recent months, whilst economic data has been reasonably firm in Europe and the US,” said according to Noel Collins, Senior Investment Consultant with Mercer.

“This has raised the prospect that interest rates may have to move higher than previously expected, and this has been negative for stock markets.”

“The manner in which stock markets across the globe have all suffered at the same time shows the importance for clients of diversifying their portfolios into alternative asset categories, which can provide some protection against conditions such as those experienced in May.”