Irish defined contribution (DC) schemes with high- and medium-risk strategies performed positively in August 2026, according to analysis from LCP.

Its sample DC scheme with a high-risk strategy saw returns of 1.9 per cent over the month, outperforming the three-month return by 0.2 percentage points.

Over the year to date, the sample scheme returned 12.7 per cent, while its return over the past year was 19.3 per cent.

Its average annual return over the past three years was 13.9 per cent, while over the past five years it averaged 8.2 per cent a year.

Meanwhile, LCP’s sample DC scheme with a medium-risk strategy returned 0.8 per cent in August, an improvement from the -0.1 per cent return over the last three months.

Its year-to-date return was 7.9 per cent, while its annual return was 11.7 per cent, three-year average annual return was 8.8 per cent, and five-year average annual return was 2.7 per cent.

However, the sample DC scheme with a pension purchase strategy returned negatively in August at -1.2 per cent.

This continued the trend of negative returns for the sample scheme over various time horizons, including -3.2 per cent over the last three months and -2 per cent year to date.

Its average annual return over the past five years was -7.6 per cent.

LCP’s sample defined benefit (DB) scheme saw its funding level improve slightly by 0.4 per cent to around 111 per cent in August.

This was driven by a 0.4 per cent increase in asset values, while liabilities remained steady over the month.

“Global equities rebounded in August, supported by resilient economic activity and robust corporate earnings, despite continued geopolitical uncertainty,” LCP stated.

“Technology stocks regained momentum following July’s sharp sell-off, as the AI theme remained in focus as capital expenditure and corporate earnings surged.

“There were gains in growth and value stocks across both developed and emerging markets.

“The advance in equities was accompanied by widespread strength across commodity markets, with gold rising by 10 per cent.

“Fixed income markets remained volatile in August, with government bond yields rising across most developed markets amid shifting expectations for central bank policy and fluctuations in energy prices.”

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