UK - Pooled balanced funds suffered a third consecutive year of negative returns last year - their worst performance since 1974 - latest figures from CAPS show.
The performance measurement group’s balanced fund median fell 18.1% during 2002 which followed an 11.9% loss in 2001.
The poor performance in 2002 was driven by double-digit negative returns in each of the major equity markets.
The index returns for UK equities was -22.7%, overseas equities -27.3%, North American equities -29.6% and European equities -27.4%.
The only asset classes that provided positive returns during the year were overseas bonds, which grew by 7.9%, UK index-linked gilts 8.2%, property 6.4% and cash 3.7%.
No balanced fund achieved positive returns during 2002. The best performers were the Prudential M&G medium-term balanced fund, which fell by only 6.3%, the Neptune balanced fund which dropped by 9.7% and the MIR UK balanced exempt fund which fell by 10.7%.
The poorest performing fund during the year was the Glasgow Investment Managers fund which plunged 28.5% in the year.
This was closely followed by the fund which is managed by Singer & Friedlander at -26.7 and the OM Gerrard fund at -25.6%.
Leading fund managers fared poorly in the 2002 figures. The massive £1.3bn Britannic Asset Managers fund fell 19.3% and only managed to achieve 58th place, while the biggest balanced fund in the survey – the £1.4bn Scottish Widows fund – fell 17.5% and was ranked in 31st place.
The CAPS pooled pension fund database currently covers 85 separate asset managers with over £197bn in both specialist and balanced pooled funds.
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