Pension funds suffered a setback last month, shedding an average of 2.1 per cent of their value as equity and bond markets struggled

The markets' turn saw the funds that had underperformed in September doing better and vice versa, but all Irish group managed pension funds recorded losses. Bank of Ireland Asset Management's (BIAM) 1.6 per cent decline was the best performance with Montgomery Oppenheim faring worst as its assets returned a loss on the month of 2.7 per cent.

"Most markets experienced substantial losses during the first three weeks of October, although the month ended with something of a mini-rally," said Fiona Daly, managing director of Rubicon Investment Consultants.

Over the year to date, BIAM's 10.2 per cent return lags the market average 13.4 per cent, with Canada Life/Setanta recording a significantly better 15.5 per cent return.

BIAM also struggles over the one and five-year periods, propping up the rankings on both categories. Over the five-year term, however, its 2.6 per cent annual investment growth leads the field with AIB Investment Managers, Canada Life/Setanta and KBC Asset Managers all still in the red.

Montgomery Oppenheim continues to outperform over the 10-year time frame that is more important for long-term investments like pensions.