Irish managed pension funds fell by 4.3 per cent on average in the second quarter of this year with negative returns recorded by all 17 managers, according to the latest survey by Mercer consultants.

The Pension Pooled Fund Survey reveals that Canada Life/Setanta led the way over the quarter despite falling by 0.4 per cent. The next best performers were Irish Life and KBM Asset Management (formerly Ulster Bank Investment Managers) with returns of -2.0. Both Acorn Life and Baillie Gifford recorded losses of 7.2 per cent for the three month period to June 30th.

The concern of investors about the long-term growth prospects for many new economy stocks was reflected in the second quarter with continued market corrections, says Mercer. Market volatility ensured any potential progress was thwarted although the technology sector rebounded in June.