Funds bounce back with fourth year of positive returns

Over four years to 31 December, pension funds achieved an estimated weighted annual average return of 13.4%, according to Mellon. UK pension funds have also seen positive real rates of return over the longer term. Over the past 10 years the annual return was an estimated 7.6% compared with 2.7% for RPI. This was also ahead of annual earnings inflation which is estimated at 4.2%, based on figures to September 2006. Daniel Hall, Mellon’s publications and statistics manager said: “Pension funds are now moving forward, following the damaging losses of the early years of this century. Based on ...