Crossing the Rubicon

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Worst Quarter for Irish Pension Managed Funds Since 2008

As the Covid-19 pandemic swept across the world, resulting in drastic and unprecedented restrictions on much of the world’s population, stock markets fell dramatically during March. Irish pension managed funds declined 11.2% on average over the month. Davy Asset Management topped the table over the month, with a return of -8.8%, while New Ireland lagged the peer group with a return of -13.6% in March.

Coming on the heels of coronavirus-related declines in February, March’s losses have pushed Irish pension managed funds to their worst single quarterly return since the financial crisis. Irish pension managed funds lost an average of 15.8% in the first quarter of 2020. Merrion Investment Managers lost the least ground over the quarter, with a return of -10.3%, while New Ireland declined the most, with a return of -21.1%. Over the past twelve months, Irish pension managed funds have delivered an 8.1% loss on average. Returns for the past year ranged from -3.1% (Davy Asset Management) to -14.3% (Setanta Asset Management).

The average managed fund return has been -0.2% per annum over the past three years. The five-year average return is just 1.0% per annum. Irish group pension managed fund returns over the past ten years have been a somewhat healthier 6.6% per annum on average.