Still 16.6% below 2007 peak – IAPF Annual Investment Survey
Dublin ; Wednesday, 14th April 2010: The value of Irish pension fund assets regained some lost ground in 2009 increasing 13.6% to €72.2bn but still 16.6% below the 2007 peak of €86.6bn, according to the Irish Association of Pension Funds (IAPF) annual investment survey.

For the first time since 2006, the proportion of assets in defined benefit (DB) schemes increased to 67% from 62%. Jerry Moriarty, Director of Policy of the IAPF, said this did not reflect a resurgence in DB schemes but more likely reflected a fall in DC contributions combined with additional cash injections to fund DB deficits.

The IAPF investment survey also shows an interesting divergence in defined benefit and defined contribution asset split with 64.3% of DB assets in equities compared to 58.7% in DC. DC members have 12.5% of assets in cash compared to 4.3% for DB schemes.

“This suggests that DC members, stung by losses in pension fund values, remain reluctant to invest in equities,” commented Jerry Moriarty. “The downside of this is that if equity markets continue to recover in 2010 as they did last year, they will lose the benefit of this upturn.”

He said that the overall picture confirmed the precarious state of pension fund investment. “Reducing tax relief on ordinary members’ pension contributions will only further reduce the incentive for members to invest adequately in their pension.”

Ends

Press queries to:
Jerry Moriarty, Director of Policy, IAPF, 
Tel: 01-613 0872 (direct line) or 087-659 2098 or
Kerri Crowley/Ronnie Simpson, Simpson Financial & Technology PR,
Tel: 01-260 5300 or kerri@simpsonftpr.ie

About IAPF

Established in 1973, the Irish Association of Pension Funds (IAPF) is a non- profit, non-commercial organisation whose aim is to promote financial security for all retired people.