IRELAND - Early signs of recovery in global equity markets are being displayed in the returns of Irish pension funds, according to the latest research from Rubicon Investment Consulting.
Irish pension funds have suffered as a result of the credit crunch but Fiona Daly, managing director, Rubicon, said there was improvement in October.
Returns during October ranged from 0.8% (Bank of Ireland Asset Management) to 2.3% (Eagle Star and Standard Life Investments). Daly said: “Returns of 1.5-2% are quite good for one month but obviously it is coming on the back of a very bad summer.”
Pension funds have made little progress during the year, with the average fund rising just 3.1% over the first 10 months.
However, despite a disappointing period for global equities, Daly said they were still a good place to be. She added: “This has gone on for a couple of months but these things happen, it’s the nature of equity markets to overreact and investors to be jittery.
“Over long term, equities have delivered the returns, and therefore if you have the time to ride out the blips in the equity markets, as pension schemes do, then it is advisable to be in assets which are going to deliver returns in line with economic growth.”
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