Life company pension funds from Scottish Equitable and Scottish Life are among those which have consistently failed to beat inflation over the past decade, despite holding £14bn in savings, according to Hargreaves Lansdown research.
Using RPI as a measure, pension funds should have grown by at least 34.3% since 2001. But Hargreaves research for the Sunday Times shows they have missed the mark by as much as 14%. The largest fund in Hargreaves' hall of shame is the £2.6bn Scottish Life Global Managed fund, returning 31.6% over the period. A £10,000 investment in the fund ten years ago would have grown to £13,167 after charges, Hargreaves said. This is compared to £13,432 if it had risen in line with RPI. The worst performing fund in Hargreaves' research was the £435m Canada Life Equity fund, which grew by just...
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