Crossing the Rubicon

The latest news and opinion from Rubicon Investment Consulting

Brexit Woes Weigh on Irish Pension Funds

Irish pension funds declined 1.6% on average during June, as stockmarkets fell following the surprise “Leave” victory in the so-called Brexit referendum in the UK. Setanta Asset Management took top spot this month with a return of 0.0%, while Aviva Investors and Merrion Investment Managers propped up the league table with losses of 2.6%.

Over the second quarter of the year, Irish pension funds made headway, with the average fund gaining 1.6%. Setanta Asset Management delivered the best return over the quarter, at 4.0%, while at the other end of the table Merrion Investment Managers returned just 0.2%. 2016 has been a disappointing year so far, however, with pension funds down 2.2% on average over the first six months. Returns for the year to date ranged from 3.9% (Setanta Asset Management) to -6.8% (Merrion Investment Managers). Over the past twelve months the average fund return was a disappointing -2.7%. Setanta Asset Management top the table over the past year with a return of 3.8%, while Merrion Investment Managers produced the lowest return at -6.7%, representing a difference of over 10% between the best and worst performing funds in the past year.

The average managed fund return has been a strong 10.7% per annum over the past three years. The five-year average return is a healthy 10.3% per annum. Irish group pension managed fund returns over the past ten years have been 4.5% per annum on average.