Managed pension funds get a boost
IRELAND'S managed pension funds rose slightly in November, according to a new index.
The Aon Hewitt Managed Fund Index, a measure of traditional Irish pension managed funds, increased by 1.2pc in November.
"Irish defined benefit pension schemes will have experienced little change in the value of their liabilities over the month due to almost static bond yields although some schemes should see a slight increase in their funding level as a result of the increase in equity markets," explained Darragh Gavin, an investment consultant with human resouces specialist Aon Hewitt.
Growth in October and November was boosted by equity markets. Global equites rose by 1.3pc in Nobember while Standard & Poor's 500 Index gained for the 8th week in a row last week, hitting a new record high, and the FTSE All World Index reached its highest point since 2007. Also at play during the month was the European Central Bank's decision to cut its key interest rate by 25 basis points to 0.25pc.
The rate cut fuelled a surge in the dollar with the euro dropping more than 1pc versus the US currency. However equity gains were capped after a better-than-expected headline third quarter US GDP reading fostered renewed speculation about a potential tapering announcement coming sooner rather than later.