Two days of turmoil at the end of February were enough to plunge Irish pension funds into the red for the month. The average Irish managed pension fund lost half a percentage point during the month, despite strong gains by equity markets over the first three weeks of February.
Losses ranged from 1.2 per cent at Bank of Ireland Asset Management (BIAM) to the standstill position at Standard Life.
The February performance undermined a strong start to the year by pensions, which had recorded average gains of 0.7 per cent in January. As a result, pension funds are barely into positive territory, with an average gain of 0.2 per cent.
Standard Life has been the outperformer so far in 2007, with a return to date of 1 per cent. At the other end of the scale, Bank of Ireland is one of two fund managers in negative territory for 2007, with losses of 0.8 per cent.
Over the past 12 months, AIB Investment Managers have provided the best group managed fund returns - at 11 per cent - just ahead of Standard Life's 10.7 per cent. These are more than twice the return of BIAM, which at 5.3 per cent, is, along with Canada Life/Setanta, lagging its peers by some distance.
The impact of just two days adverse trading due to a slump in the Shanghai Stock Exchange is evident from the 12-month average returns. At the end of February, the average fund return over the period was 8.7 per cent. At the end of December, the 12-month return averaged 13 per cent.
Returns over the three-year term remain strong - an average annual return of 13.5 per cent. Standard Life topped its peers with an annual gain of 15 per cent, ahead of Eagle Star on 14.8 per cent. BIAM again underperformed, with annual gains of 11.1 per cent.
Over the five-year, medium-term horizon, Standard Life and Irish Life Investment Managers recorded gains of 8 per cent per annum against an average of 7.1 per cent and KBC Asset Management's 5.7 per cent.
Over the more relevant 10-year term, Oppenheim continues to lead its peers with an annual gain of 11.6 per cent per annum.
