Research from the WM Company shows that in 2001, actively managed pension funds outperformed tracker...
Research from the WM Company shows that in 2001, actively managed pension funds outperformed tracker funds in most of the major markets.
In the 10-year period to the end of 2001, active funds outperformed passive funds in five of the years. The worst underperformance over those 10 years for active funds were in 1997 and 1998.
A comparison of returns showed that the median index portfolio returned a loss of 13% in 2001, and a loss of 5.2% in 2000. The median active fund returned a loss of 12.8% in 2001 and a loss of 3.3%. However, over the 10-year period, while both active and tracker funds outperformed the index, it was passive funds which were the best performing, albeit a marginal outperformance.
The study was based on the WM All Funds Universe, composed of 1,009 UK pension funds, with equity holdings of £291bn as at the end of 2001.
Alastair MacDougall, head of research at the WM Company, said: 'Our study examined the performance of UK pension funds and shows that 2001 was a good year for active investors in aggregate who managed to outperform the indices in the UK, US, Europe ex-UK and Japan.'
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