Crossing the Rubicon

The latest news and opinion from Rubicon Investment Consulting

A Damp June for Irish Pension Funds

Irish pension funds did not benefit from the heatwave enjoyed by the rest of us in June, declining 0.7% on average. Setanta Asset Management took top spot this month with a return of -0.3%, while Standard Life Investments propped up the league table with a loss of 1.3%.

Over the second quarter of the year, Irish pension funds lost ground, with the average fund declining 0.9%. Standard Life Investments delivered the best (and only positive) return over the quarter, at 0.2%, while Merrion Investment Managers and Setanta Asset Management trailed the peer group, returning -1.4% over the past three months. Despite recent disappointing returns, Irish pension funds are well in the black for 2017, with funds rising 2.9% on average over the first six months. Returns for the year to date ranged from 5.1% (Standard Life Investments) to 0.9% (Merrion Investment Managers). Over the past twelve months the average fund return was a very healthy 11.2%. Zurich Life top the table over the past year with a return of 14.3%, while Merrion Investment Managers produced the lowest return at 7.5%.

The average managed fund return has been a strong 9.2% per annum over the past three years. The five-year average return is a robust 11.6% per annum. Irish group pension managed fund returns over the past ten years have been 4.1% per annum on average.