Irish pension funds delivered a marginally positive performance during June, of 0.1% on average, the fourth month in a row that returns have been positive. The half year average return to June 2009 was 5.5%.
However, returns over the month were mixed, with several managers delivering negative returns. The best performing managed fund in June was that of Standard Life Investments, which returned 0.7%. Irish Life Investment Managers propped up the league table with a disappointing -0.6% return for the month.
Over the second quarter of 2009, the average fund delivered a positive return of 11.3%. Merrion Investment Managers was the best performing manager over the quarter, with a return of 14.8%. AIB Investment Managers delivered the worst performance, of 8.6%, over the three months. Over the first half of 2009, returns are also positive with the average fund having gained 5.5% over this period.
In the six months to the end of June, returns ranged from 11.3% (Merrion Investment Managers) to 0.7% (AIB Investment Managers), representing a difference of 10.6% between the best and worst performing managers so far this year. Over the past twelve months the average fund delivered -19.3%, with returns ranging from -13.9% (Canada Life/Setanta) to -23.9% (AIB Investment Managers).
Fiona Daly, Managing Director, Rubicon Investment Consulting commented: "The average managed fund return has been an extremely disappointing -9.2% per annum over the past three years. The five year returns to the end of June are also negative, with the average managed fund delivering a return of -0.7% per annum over this period. Irish group pension managed fund returns over the past ten years have been a disappointing 0.1% per annum on average, well below the Irish inflation rate of 3.2% per annum over the same time horizon.
Indeed, none of the managers surveyed outperformed inflation over this period, with just over half of the fund managers delivering positive returns."