Pension funds lost ground in March as the Madrid bombings hit market sentiment. Group managed pension funds reported a 0.2 per cent average fall in the month, although solid performances in January and February saw an average gain of 3.8 per cent for the first quarter of 2004.
Standard Life, with a return of 0.4 per cent, was one of just four fund managers to report a positive performance in March and also tops the quarterly table with growth of 5.1 per cent.
On a 12-month basis, Irish Life did best with a return of 26.9 per cent. However, with growth of 21.4 per cent, Irish Life's Global Access fund propped up the table with AIB Investment Managers (20.1 per cent). The one-year average return was 22.9 per cent.
Hewitt & Beckett investment consultant Ms Evelyn Ryder said the "continued positive, albeit relatively low, returns" would be welcomed by funds.
Mercer senior investment consultant Ms Gráinne Alexander said the returns had varied widely in different markets.
"For example, the euro bloc region has returned just under 2 per cent to investors while Japanese equities have given a return in excess of 18 per cent," she said.
The world equity index added 6 per cent in the three-month period. In the Republic, the ISEQ was 5.2 per cent ahead.
Ms Fiona McKenna of Buck Consultants said strong earnings data from US companies and merger and acquisition activity boosted markets in January and February. In March this was offset by the Madrid attacks and uncertain economic news.
Pension funds are still struggling to recover from the bursting of the technology bubble. Over three years there is an average loss per annum of 2.2 per cent. Over five years, funds are barely ahead, with average growth of just 0.7 per cent per annum.
However, over 10 years, funds report average annual returns of 9 per cent, compared to average inflation of 3 per cent.
