UK - Watson Wyatt's pension fund clients saw strong returns for assets in global and UK equities, but weak performance in UK index-linked and global government bonds.
The figures, which were released this week, are contained in Watson Wyatt’s first annual Model Portfolio – a document showing how assets have performed under the consultant’s fund manager recommendations.
The document sites investment performance of its managers from January 1, 2000 to December 31, 2002.
It shows that relative return of assets – net of transaction cost and manager fees – in UK equities was 2.25% and global equities was 3.7%. Whereas net relative return of index-linked bonds was 0.15%, global government bonds returned 0% and emerging markets made -0.14%.
European head of investment consulting Nick Watts stressed that different asset classes have different volatility statistics so the individual performance figures should not be compared with one another.
The Watson Wyatt data has emerged some three months after rival Mercer released its fund manager performance figure.
But Watts warned pension funds from comparing the two sets of data, which were calculated over differing time frames.
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