Top-performing UK global equity pension funds invested more in the US and cash last year at the expe...
Top-performing UK global equity pension funds invested more in the US and cash last year at the expense of domestic market exposure, according to a recent report by Caps.
The weighted average for funds invested in the UK was 67.0% but GAM International Growth, which topped the annual rankings out of 35 funds to 31 December 2000, only invested 41.3% and increased its exposure to the US market.
It invested 14.1%, compared with the average of 6.3% exposure of funds.
Lack of confidence in the markets might be seen in GAM's decision last year to hold 4.3% cash against an average of 1.2%.
The Bank of Ireland, which came in second in the Caps survey, also followed this way of thinking, investing 18.2% in the US, 62.7% in the UK and 3.0% in cash. The Bank of Ireland was more sceptical about Japan, investing only 2.8% against an average of 5.1%.
P&D Global Equity, ranked third by Caps, bucked the trend by investing nothing in the US, 70.3% in the UK and 0.2% in cash. Instead, it put more faith in Europe and Asia than its rivals. In Europe P&D invested 17.5% against an average of 15.8% and 6.7% in Asia against the average of 3.5%.
The company that took the biggest gamble on the US was Martin Currie International Growth, ranked 34 by Caps. The fund had 46.5% exposure to the US and only 9.3% in the UK. However, the fund manager also had a comparatively large exposure to Japan, with 14.5% against an average of 5.1%.
On the whole, the figures suggest that those who put more in the US than the average 6.3% had a good a year.
Equitable closely followed averages elsewhere and put 15.5% in the US and only 55.8% in the UK, and was ranked fifth in the report.
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