Irish pension managed funds delivered negative returns
in August, with an
average return of -0.9% for the month.
Merrion Investment Managers took top spot with a return of -0.4% for the
month, while Setanta Asset Management and Prescient Investment Managers propped up the league table with returns of -1.3%. With six out of
eight months recording gains, managed funds have now returned 8.7% on average so far in 2013.
Setanta Asset Management delivered the
strongest return over the year to date at 12.0%, while Prescient Investment Managers produced the weakest return, gaining 7.4%
over the same period. Over the past twelve months, the average fund return was 12.0%. Returns for the year ranged from
14.8% (Setanta Asset Management) to 10.1% (Prescient Investment Managers).
Fiona Daly, managing director of Rubicon Investment Consulting, said: "The
average managed fund return has been 8.9% per annum over the past three years.
The five-year average return is 4.6% per annum. Irish group pension managed fund
returns over the past ten years have been 4.9% per annum on average, compared
with the Irish inflation rate of 1.7% per annum over the same time horizon. All
of the managed funds surveyed outperformed inflation over this period."
Aon Hewitt, the pension consultants, said that
the Aon Hewitt Managed Fund Index, an index of traditional managed
pension funds, fell by -0.7% in August. Despite the negative return this month,
the Index has delivered a positive return of 8.7% since the beginning of 2013.
Equity markets suffered from increased political risk in August. Minutes from
the Federal Reserve's most recent meeting coupled with the increasing tensions
in Syria and concerns over the conflict that could follow in the Middle East led
global equities to a 1.3% loss over the month as measured by the FTSE World
''Fear that the Fed may begin tapering its bond purchasing programme was the
main concern this month, as it seems likely Bernanke could scale back the
purchases before he steps down as chairman of the Fed,'' commented Cathal
Fehily, investment consultant with Aon Hewitt. ''The increased volatility in
markets could be seen as the VIX, a measure of equity market volatility commonly
referred to as the 'Investor Fear Gauge' jumped 26.5% over the month, as
investors became nervous about the escalating violence in Syria and possible
withdrawal of monetary support from markets."
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