The Aon Hewitt Managed Fund Index, an index representing the performance of traditional Irish pension managed funds, increased by 1.6% in May. This has contributed to the index delivering a positive return of 13.0% since the beginning of the year and 24.1% over the past 12 months. Rubicon Investment Consulting report (see below) that its portfolio of funds achieved an average return of 1.8%.
Aon Hewitt said that over the month of May, global equity market returns were positive in euro terms with the FTSE All World returning 2.2% despite uncertainty over Greece weighing on markets and the US economy reporting a first quarter contraction in GDP growth according to a revised estimate. The MSCI Emerging Markets Index was the worst performer in euro terms (-1.9%) while the ISEQ Index was the best performer in euro terms (+4.2%).
Rubicon Investment Consulting said taht Irish pension managed funds delivered positive returns on average during May, with the average gain of the funds surveyed being 1.8%. Zurich Life were ranked top this month with a return of 2.4%, while New Ireland propped up the league table with a return of 0.9%. The first five months of 2015 have seen very strong pension managed fund returns, with a survey average of 13.8%.
Merrion Investment Managers top the table over the year to date with a return of 17.3%, while Setanta Asset Management produced the lowest return at 11.9%. Over the past twelve months, the average fund return was 25.5%. Returns for the year ranged from 32.3% (Merrion Investment Managers) to 19.1% (New Ireland), representing a difference of over 13% between the best and worst performing funds over the past twelve months.
The average managed fund return has been a very strong 18.6% per annum over the past three years. The five-year average return is a healthy 12.8% per annum. Irish group pension managed fund returns over the past ten years have been 6.6% per annum on average.
LCP Ireland commented: "The funding level of a sample DB scheme increased back above 100% as liabilities decreased in May due to the impact of rising bond yields.
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