IRELAND - Irish pensions funds posted a modest 1.4% in growth during the second quarter of 2004, bringing overall growth to 5.3% for the year, according to Mercer.
“What we had was reasonably moderate gains in equity markets,” said Noel Collins, a senior investment consultant with Mercer. “In other words, we had a good opening quarter to the year, which was continuing the fairly impressive rally in equity markets that we saw in 2003. But in the second quarter, that really eased off, and you could say broadly speaking markets moved sideways.”
Because Irish pensions are more weighted towards equities, with around 70% in stocks, shifts in equity markets will be a large factor in determining funds’ performance, Collins noted. The Mercer report surveyed 16 multi-asset fund managers on their performance.
While Collins emphasised that conclusions couldn’t be drawn from one quarter’s performance, the average Irish pension managed fund grew by 14.6% over the 12 months to May 31 2004.
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