LIMERICK investors using Irish Pension Managed Funds returned more than two per cent profits for the month ending 31 August 2008.
Hewitt Associates, a global human resources services company, has released the information in its monthly fund index for the end of August 2008, an indicator of Irish Pension Managed Fund performance.
According to a statement from the firm, the result will come as a welcome relief to Irish Pension funds after two consecutive months of heavy investment losses, down 8.3% in June and 2.6% in July.

 “On a positive note, the 10-year return is once again above inflation. The index shows a 10-year return of 4.6% per annum whereas inflation for the same period was 3.8% per annum. This is largely due to the fact that the 1998 LTCM crisis (where the Pension Managed Fund index fell 10% over that month) has now dropped out of the 10-year window. The effect is to bring longer term returns more in line with expectations and once again above inflation,” said Deborah Reidy of Hewitt Associates. 
However, Reidy added: “The outlook for equity markets is still uncertain. Pension fund investors can expect volatility to remain in the short term but we would urge investors to consider the investment returns in light of the longer term returns as pension investments are typically 15 years and longer. Investors should be aware that Managed Fund Index shows that over 15 years, pension returns were more in line with longer term expectations at 7.5% per annum.”

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