High returns unrealistic

Professional Adviser
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Weak returns for 2000 mean pensions are being managed with short-term focus

Pension funds are being managed with a focus on the short term as expectations for the high returns seen in the 1980s and 1990s are seen as unrealistic, according to Phillips & Drew. The past year has seen a decrease in the value of the assets of UK occupational pension funds, from £777bn in 1999 to £755bn in 2000, reflecting the weak returns for the average pension scheme in 2000. Andrew Maclaren, head of asset allocation at Phillips & Drew, said pension fund assets have grown in real terms by an average of about 7% a year since the end of 1963. Most schemes have reached maturity and ...

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