IRELAND - Traditional active managers are back in favour despite Irish equity market disappointment this quarter, research has shown.
A quarterly pension managed-pooled fund survey for the period ending 30 September 2005, released by Hewitt Associates, showed the Average Managed Fund performed in line with the Hewitt Managed Fund Index.
The Average Managed Fund returned 3.4% in September and 5.6% over the quarter, while the Hewitt Managed Fund Index had a performance of 3.4% in September and 6.0% in the third quarter of 2005.
Hewitt investment consultant Anita Graham said: “AIBIM held the top position over the month of September with 4.0%. Montgomery Oppenheim are slightly ahead of Eagle Star over the quarter at 6.9%, and Setanta retained it’s position in the year to date figures at 18.1%.
“Setanta/Canada Life have held this top position every month this year on the back of very strong Quarter 1 returns.”
Eagle Star are ahead over 12 months at 24.0%, ILIM over 3 years at 15.5%, BIAM over 5 years at 3.6% and Montgomery Oppenheim remain the 10-year leader with a return of 12.7%pa.
The ISEQ returned 5.1% for Q3, 2.6% in September, the second worst performing market behind North America for the quarter and worst performing market in September. Anita Graham added: “Managers that held an overweight position in Irish equities were hit, especially the likes of BIAM who in addition to being overweight in Irish equities, did not hold Elan-the top performing constituent over the period.”
BIAM in September returned 2.5% against an average of 3.3% and over the quarter 3.5% against the Hewitt Managed Fund Index of 6.0%.
Evelyn Ryder, senior consultant at Hewitt commented: “This poor performance comes at an inopportune time particularly for BIAM who are currently struggling with staff turnover and significant client losses and surely this recent performance will only further serve to compound their asset outflows”.
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