Balanced pooled funds continue to claw back earlier losses with a 2% increase in the first quarter, representing the eighth consecutive positive return, according to investment services firm Russell/Mellon.
Daniel Hall, publications and statistics manager at Russell/Mellon’s says pension funds continue to pick up losses gained during the bear market in the early 1990’s.
He adds: “They still have some way to go, but, based on median performance, a typical pooled Balanced fund would now be worth around 94% of its asset value at the start of 2000.”
The firm says UK Equities achieved an index return of 3%, against a 0.5% overall gain from Overseas Equities.
UK Bonds and Index-Linked Gilts however, picked up returns of –0.1%, according to Russell/Mellon, while Overseas Bonds showed the poorest return of –0.9%. Property continues to excel with a positive return of 2.5%, extending its positive run to almost a decade, stretching back to Q3 in 1995. Cash is also up 1.1%.
Pooled balance managers continue to move money out of UK Equities however, a good relative performance has seen UK Equities weighting advance from 51% to 51.2%.
The pooled pension fund database covers 77 separate asset managers who manage in excess of £335bn in pooled funds, both balanced and specialist.
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