Irish pension funds are continuing on their upbeat paths with the sixth consecutive month producing a positive performance, with an average 2.8 per cent return, says Rubicon Investment Consulting.

The best performing fund was Irish Life Investment Managers, at 3.9 per cent, and Aviva Investors, although bottom of the table, still managed to return a positive 2.0 per cent for August.

For year to date results, the average fund has gained 15.0 per cent, and in this first eight months of 2009, returns ranged from 22.9 per cent (Merrion Investment Managers) to 8.8 per cent (AIB Investment Managers).

Hewitt Associates' results from its monthly Hewitt Managed Fund Index showed average Irish pension managed funds returns of 3.0 per cent for August. Evelyn Ryder, investment consultant at Hewitt Associates, confirmed that since the end of February 2009 managed fund returns are up over 24 per cent.

"Since March 2009, equity markets have been rallying and this continued in August," Ryder said. "The return of the Hewitt Managed Fund Index for the first eight months of 2009 is now +14.7 per cent. Equity markets have risen considerably from their lows in mid March and the gains recorded in August can be attributed to more positive economic data and company earnings results."

Ryder added that while positive equity market performances have helped Irish pension funds, caution must still be observed. "Even though stress levels on the financial system have subsided and global economic fortunes are not deteriorating as rapidly as they once were, there are still many causes for investor pessimism. Unemployment and consumer spending in all of the major developed economies continue to deteriorate while GDP figures are contracting and the inflationary outlook remains stagnant."

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