Third consecutive year of negative pension returns

Pension funds delivered their third consecutive year of negative returns in 2002, according to pension fund analysts Russell/Mellon Caps, the first time such an event has occurred since records began. The average pension fund returned -11.3% over the calendar year 2002, following losses of 8.9% and 1% in 2001 and 2000 respectively. US and Europe ex-UK equities were the year's worst performers, with fixed interest, property and cash the only sectors to post positive growth.