UK - UK pension balanced fund managers saw a 2.2% recovery in average returns during Q1 this year, according to a new study by HSBC Actuaries and Consultants.
But the latest IMAGE survey showed that despite what appeared to be a gain over two consecutive years of negative returns, not all managers saw a rise during the period with two firms producing negative returns, the worst being -1.8%.
Commenting, Bobby Riddaway senior investment consultant at HSBC said that returns were largely driven by the rise in equity prices during the quarter:
“The range of results is very small as the three main markets, UK, USA and Europe, produced returns within 0.1% of each other and the median growth of 2.2%.
“Japan was up 3.7% in sterling terms. Asia-Pacific excluding Japan and emerging markets produced 9.1%.”
But HSBC cautioned that the recent recovery in stock markets should be seen in context since the markets still had a long way to go before restoring the losses of the last few years. If the returns of Q1 were projected forward it would take at least 18 months more to make up the losses, said the firm.
SRI investors Friends, Ivory & Sime produced the worst result for Q1 2002 at -1.8%, said HSBC, closely followed by KBC Asset Management with a -1.5% rate of return.
Only two managers posted positive results over the twelve months to March 2002 - JP Morgan Fleming (+1.9%) and Baillie Gifford (+1.5%). The median produced over three years years to date was also still in negative territory at -0.1%.
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