The average managed pension fund rose by 5.5 per cent in the second quarter of the year, according to the latest figures from Mercer Benefit & Remuneration Consultants.
Progressive Life and Acorn Life put in the best performances at 7.4 per cent and 7 per cent respectively. Montgomery Oppenheim came in at 3.5 per cent, and Canada Life/Setanta at 4.5 per cent, lagged behind their competitors over the second quarter.
Over the six-month period to June 30th, 2001, Irish Life and Progressive Life led the way, returning 2.7 per cent against the average return of 0.2 per cent. Canada Life/Setanta prop up the table posting a -2.4 per cent return for this period.
"The strong performance over the second quarter offered investors some respite from the negative returns that they had to bear over recent periods," said Mr Michael Dempsey, senior investment analyst with Mercer.
"With the average fund holding over 70 per cent of its assets in equities, pension fund performance greatly benefited from stronger equity market performance in April and May." The Irish equity market outperformed its peers, returning 16.7 per cent for the quarter. It also leads the way in the year-to-date gaining 13.5 per cent. North American equities gained 10.4 per cent, Pacific Basin equities returned 10.2 per cent and Japanese equities gained 6.3 per cent. The euro zone was among the worst performers, posting a 1 per cent return.
Mr Dempsey said the further weakness of the euro was another significant feature of the quarter as it enabled euro-based investors to convert their low non-euro gains into higher returns.
As pension fund investment is long term in nature, Mercer recommends that more attention be paid to longer-term returns.
For the five-year period to date, New Ireland tops the list with 17.4 per cent growth per annum against an average return of 15.3 per cent, while Standard Life at 13.2 per cent lags its peers. Over the 10-year period, Hibernian holds the top position with a 14.7 per cent return, outperforming the average return of 13.8 per cent. Irish Life at 12.9 per cent under performed the average return.
