Crossing the Rubicon

The latest news and opinion from Rubicon Investment Consulting

A Disappointing November for Irish Pension Funds

Irish pension funds failed to build on the gains of the previous two months, delivering somewhat disappointing returns during November, resulting in an average decline of 0.3% over the month. Friends First/BMO and New Ireland turned in the best – and only positive - performances this month with gains of 0.3%, while Merrion Investment Managers delivered the worst, with a return of -1.3%.

Despite this, pension funds have gained a respectable 6.7% on average so far this year. Returns for the year to date ranged from 9.0% (Aberdeen Standard Investments, formerly Standard Life Investments) to 4.6% (Merrion Investment Managers). Over the past twelve months the average fund return was 9.1%. Aberdeeen Standard Investments top the table over the past year with a return of 11.7%, while Merrion Investment Managers produced the lowest return at 7.2%.

The average managed fund return has been a healthy 7.8% per annum over the past three years. The five-year average return is a strong 11.1% per annum. Irish group pension managed fund returns over the past ten years have been 5.2% per annum on average.