Meanwhile, the strong stock market performance has helped to push up the value of most pension funds, with the average managed fund achieving 32.4 per cent growth in 1997.

Investors whose pension funds are heavily invested in the Irish, British and US markets have benefitted most due to the surge in share prices in those markets last year. The only downside for investors was the negative returns from South East Asian markets and Japan. But as most Irish funds hold only relatively few investments in these countries the troubles in these markets had virtually no impact on most of the managed funds.

The best-performing pension fund was that managed by Montgomery Oppenheim, showing 41 per cent growth, according to Irish Pensions Trust data. Equitable Life and Norwich Union achieved the second highest rate of growth at 37.2 per cent, closely followed by EBS Fund managers at 37 per cent. The weakest performance came from Canada Life, showing growth of 27.1 per cent. Standard Life's funds grew by 30.4 per cent, and Bank of Ireland Asset Managers funds increased in value by 30.5 per cent in 1997.

Over the longer term, which is the most important performance indicator for pension funds, the average managed fund made gains of 20.5 per cent over five years and 14 per cent over 10 years. Over five years, Eagle Star was the top performing fund, achieving 24.1 per cent growth. This was followed by Friend's Provident at 21 per cent and Standard Life at 20.4 per cent.

Over 10 years, Bank of Ireland Asset Managers achieved the biggest gains, with its managed funds increasing in value by 15 per cent. Guardian Life was next at 14.8 per cent, while New Ireland achieved growth of 14.6 per cent.