UK - Pension funds returned 0.8% for the second quarter of 2004, underperforming UK equities, new figures from Russell/Mellon reveal.
Preliminary results from its CAPS survey show the median return for balanced managers was 0.8%, compared to the FTSE All-Share, which returned 0.9% for the three months to June 30.
Out of the eight largest balanced funds, the best performer was Newton Investment Management’s £1bn Newton Exempt Fund, which returned 2.1% for the quarter.
Second was Schroder Investment Management’s £1.2bn balanced fund, which posted a 1.3% return, while in third was Deutsche Asset Management’s £845m Deutsche Life Balanced Fund, which returned 1.2%.
Insight Investment, Standard Life Investments and Scottish Widows Investment Partnership all managed to beat the index.
Insight’s £933.5m balanced fund returned 1% for the quarter, as did SLI’s £1.2bn managed fund. SWIP’s £1.4bn balanced fund returned 0.84%.
The worst performing manager was Baillie Gifford – its £1bn MPF fund posted a return of -0.4%.
Guy Opperman has indicated his support for a fresh pensions commission as the government seeks to understand how to progress pensions policy in a wide range of areas.
Auto-enrolment (AE) minimum contribution rates could rise to 12% by 2030, with a 50/50 split between employer and employee, the Pensions and Lifetime Savings Association (PLSA) says.
ITM director Maurice Titley looks at the next steps schemes should take on GMP equalisation.
Schemes are too focused on outcomes when assessing governance, when this may be a result of circumstance not skill. James Phillips looks at whether governance needs more of a framework.