Pension fund investment growth slowed in January

Pension fund investment growth slowed in January after a bullish end to 2005. However, the average Irish managed pension fund increased in value by 2.2 per cent. Over a 12-month period, the average return was 21.7 per cent, fractionally ahead of the 21.6 per cent in 2005.

Returns in January were hit by currency translation as both the dollar and yen weakened against the euro, undermining some of the gains in those markets.

Hibernian Investment Managers got the strongest start to the year with a one-month return of 2.8 per cent. That was just ahead of Eagle Star and Montgomery Oppenheim (both on 2.7 per cent) and nearly double the 1.6 per cent growth recorded by laggard Canada Life/Setanta.

Bank of Ireland Asset Management (BIAM) and Irish Life Investment Managers (ILIM) also struggled with returns of just 1.8 per cent.

Standard Life, which was the strongest performer in 2005 with a gain of 23.9 per cent, surrendered top spot over the last 12 months to Eagle Star. Standard Life's one-year return slipped to 23.1 per cent while Eagle Star saw its fund grow 23.2 per cent.

A strong performance by equity markets in recent months has seen all funds return to growth over the five-year term. Over this term, BIAM is the strongest performer with an annual return of 4.3 per cent against an average of 2.9 per cent and a low of 0.5 per cent by KBC Asset Management.

Over the more relevant 10-year period, Montgomery Oppenheim's 12.8 per cent average growth each year leads its peers' average of 9.9 per cent and the low of 8.6 per cent at Canada Life/Setanta.