The Aon Hewitt Managed Fund Index, an index representing the performance of traditional Irish pension managed funds, increased by 4.8% in January. This has contributed to the index delivering a positive return of 22.9% in the past 12 months. Meanwhile the mean managed fund gain for the month was 4.7% according to Rubicon Investment Consultants.
Irish pension managed funds delivered strong returns during January, as most global equity markets made gains over the month with the notable exception of the US. European markets rose on the announcement of quantitative easing by the ECB, and by the sharp fall in the Euro following the breaking by the Swiss National Bank of their Euro currency peg. The US market struggled however, as the dollar rose, oil prices fell and corporate earnings disappointed.
Aon Hewitt said that oil prices continued to slide and were down 8.9% in US Dollar terms for the month of January as OPEC continue to maintain production levels despite falling prices.
Core Eurozone government bond yields decreased again in January. The German 10 year Bund yield decreased by 23 bps to 0.31%, while the French 10 year bond yield decreased by 30 bps to 0.54%. Peripheral Eurozone bond yields also decreased over the month of January with the Irish 10 year bond yield falling 11 bps to 1.13%.
LCP Ireland commented: "Long-dated AAA Eurozone Government bond yields fell again following the ECB announcement of its quantitative easing programme.
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