Pension funds marked time in the third quarter, ending just fractionally ahead as a 1 per cent gain in September offset losses earlier in the three-month period.

Overall, the average group pension managed fund was 0.2 per cent stronger over the period. In the year to date, Irish pensions have added 5.3 per cent to value.

Eagle Star was the strongest performer in September, growing 1.5 per cent, ahead of AIB and Irish Life on 1.2 per cent. Bank of Ireland Asset Management propped up the table with a gain of just 0.5 per cent.

Bank of Ireland (BIAM) was one of four providers to record negative growth over the three-month period - along with KBC Asset Management, F&C and Canada Life/Setanta.

Mercer's Mr Tom Geraghty noted that Bank of Ireland's performance had slipped. "Over the medium/long-term time horizons, BIAM's relative performance is extremely good," he said. "However, recent performance has dipped."

He noted that the four asset managers who left the company in the past fortnight were all senior members of the team and sat on BIAM's investment strategy group. "Coupled with these recent departures, the poor performance may put further pressure on BIAM," he said.

Over the year to date, Irish Life produced the best returns, up 6.8 per cent, just ahead of Hibernian (6.6 per cent) and well ahead of KBC on 2.1 per cent.

Over the past 12 months, Hibernian (13.5 per cent) and Irish Life (13.4 per cent) swap positions. KBC again holds up the table on 8.4 per cent.

AIB's relatively strong recent performance is not reflected over the longer term where both it and KBC produced negative returns on average in each of the past five years, while Bank of Ireland topped the list with 3.9 per cent growth. The average was 1.4 per cent. Over 10 years, Montgomery Oppenheim's 12 per cent per annum reflected best against an average of 9.2 per cent and just 7.7 per cent for AIB.

Irish equities were the strongest sector in September, according to Ms Fiona Daly of Heissmann. However, this was led by Elan, a share in which most Irish fund managers do not hold a full weighting.