IRELAND - The average managed pension fund increased by approximately 21% during 2005 helped largely by "exceptional" returns from global equity markets, in particular regions such as the US, European and Asian markets, according to head of Mercer Investment Consulting, Tom Geraghty.
“Equities have generally benefited from good corporate results and ongoing M&A activity, and also a decline in oil prices from the peaks seen in the late summer/autumn,” he said.
However declining bond yields have continued to place upward pressure on the value of pension liabilities.
According to Geraghty: “ While the financial position of many defined benefit schemes will have improved over 2005, this improvement will be somewhat more muted than a 21% increase in assets might a first imply.”
Overall the average Irish pension managed fund gained over 5% over the final quarter of 2005, bringing the full year 2005 return to 21.2% according to the latest figures released by Mercer Investment Consulting.
Standard Life Investments Managed Fund was top of the leader board over the full year with returns of 23.9%. Davy’s Exempt Pension Managed Fund was the poorest performer with with 14.9%.
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XPS Pensions has enhanced its fiduciary management selection service in order to help trustees through initial selection and mandatory re-tendering.
One in five defined benefit (DB) schemes are in The Pension Regulator's (TPR) weakest two categories, analysis by Hymans Robertson has revealed.
State Street Global Advisors (SSGA) has been selected as the first index manager for the Asset Management Exchange's (AMX) passive funds.