Tuesday 12 December 2017

Pension funds down 2.8pc in May

Charlie Weston Personal Finance Editor

PENSION funds gave back some of the gains made over the past three months after they turned in negative performances over the month of May.

The average managed fund was down 2.8pc for the month, figures compiled by Fiona Daly of Rubicon Investment Consulting show.

Standard Life Investments took top spot, but even its return was a negative 1.9pc for the month, while Irish Life Investment Managers propped up the league table with a 3.9pc return.

Despite the poor returns in May, the average managed fund has advanced 3.8pc over the first five months of the year.

This figure was made up of returns ranging from a high of 5.3pc (Standard Life Investments) to a low of 2.2pc (Aviva Investors).

Over the year, all of the managed funds surveyed delivered double-digit growth, with the average fund returning 20pc, Rubicon said.

Returns for the past year ranged from 23.1pc (Standard Life Investments) to 17.2pc (AIB Investment Managers).

Ms Daly of Rubicon said the average managed fund return has been a very disappointing 8.8pc per annum over the past three years.

"The five-year returns to the end of May are mostly positive, with an average return of 0.8pc per annum over this period. Irish group pension managed fund returns over the past 10 years have been a disappointing 0.6pc per annum on average, well below the Irish inflation rate of 2.5pc per annum over the same time horizon.

"Indeed, none of the managed funds surveyed outperformed inflation over this period, while four of the 10 funds failed to deliver positive returns over 10 years," Ms Daly said.

Irish Independent

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