Irish pension funds made gains last month as global stock markets rose.

However, there were substantial difference between fund performances.

Standard Life had the strongest return in October with growth of 1.1 per cent against a 0.6 per cent average, according to figures published yesterday by Heissmann Consultants.

Three funds posted gains as low as 0.4 per cent in the month.

In the year to date, the average Irish group pension managed fund has improved by 5.9 per cent, with Hibernian and Irish Life topping the table at 7.3 per cent well ahead of the 2.5 per cent return delivered by laggard KBC Asset Management. Over the past year, funds have added 7.6 per cent.

Overseas market gains during October were largely eroded by the relative strength of the euro, according to Heissmann head of investment consulting, Ms Fiona Daly.

Oil was a dominant element in the economic picture, she said. However, equity markets responded to strong figures from companies in the third-quarter reporting season and positive outlooks from some market blue-chips.

Longer-term pension fund performance is still hampered by the market collapse after the bursting of the dotcom bubble.

Funds have returned an average of just 0.4 per cent per year over the last three years and 1.1 per cent annually over the five-year term.

Long-term performance is seen as the most relevant indicator to fund performance and over the 10-year term, Montgomery Oppenheim has been the best of the Irish funds, with an annual growth rate of 12 per cent.

Bank of Ireland Asset Management and Eagle Star produced double-digit yearly growth.