Irish pension funds have continued to benefit from strong market conditions, with funds recording an average rise of 12.3 per cent over the three months to the end of June 1997. According to a survey by Mercer, the actuaries and benefits consultants, returns were also boosted by the weakness of the pound against sterling and the dollar. This increased the returns in pound terms of investments in the US and Britain.

An average return of 12.3 per cent over three months is almost double the performance over the previous quarter. It leaves the average fund up 19.8 per cent for the six months of 1997.

Of the 16 professional investment managers monitored in the survey, the best performer over the quarter was Montgomery Govett with 14.7 per cent, followed by

Equitable Life with 14.3 per cent.

Over the latest 12-month period, ESB Fund Managers has the highest return with 32.9 per cent.

In second position is Friends Provident with 30 per cent - both are above the average of 26.5 per cent.

If measured over a three-year term, ended 30th June, ESB Fund Managers perform best with 23.2 per cent, while Eagle Star is next with 22.3 per cent.

The average fund over this period registered 19.1 per cent, which in real terms (excluding inflation) is in excess of 17 per cent.

If measured over a five-year term, the best return is recorded by Standard

Life with 18.1 per cent, just ahead of Friends Provident at 18 per cent.

Over a 10-year period, New Ireland is the clear leader with 13.7 per cent annualised return.

Commenting on the Irish equities market, Mercer notes the market continued to

"forge ahead" with a second quarter gain of 13.1 per cent, to finish 25.5 per cent up on its start-year position.

It points out that "this time around, financials outpaced industrials, led by solid performances from the two banks".

It says "most noteworthy" was Waterford Foods which turned in a "massive" 88

per cent following recommendation of its merger with Avonmore by the plc and Co-

Op boards.