Managed pension funds are continuing to make good returns for investors. The latest research by actuary and consultant Mercer shows that managed funds on average produced a 6 per cent increase in value in the first quarter of 1999.
Acorn Life, formerly known as NZI Life, was the top-performing fund, achieving a 7.9 per cent return in the three-month period. It was followed by Ulster Bank, with a return of 7.3 per cent and Equitable Life, which recorded a 7.1 per cent investment gain.
The worst performance in the first quarter was achieved by Guardian Life and Montgomery Oppenheim, which both achieved 4.4 per cent growth.
Looking at the performance of funds over a 12-month period, Ulster Bank moves into the lead, returning 9.6 per cent, while AIB Investment managers and New Ireland are joint second at 8.6 per cent, above the average 5 per cent growth within the sector.
The weakest performance in this category was from Montgomery Oppenheim which showed a loss of 1.5 per cent.
The funds' long-term performances are the most relevant for investors. Over five years, the average return was 17.9 per cent, with Eagle Star ahead of its competitors, achieving 20.9 per cent. The worst performance over this period was the Canada Life consensus fund, with a return of 14.5 per cent.
