UK - Individual balanced pension fund managers have seen massive variations in performance over short and longer terms, new figures show.
But only three managers returned upper-quartile performances over one, three, five, seven and 10-year periods, the full HSBC Actuaries and Consultants IMAGE survey for 2002 reveals.
Glasgow Investment Managers turned in the worst performance over the year to December 31, 2002, with assets falling 28.1%. But it managed the best performance over 10 years with annualised performance of 8.9%. The performance is attributed to its aggressive equity style.
Other firms such as Prudential did less well over the longer term. While the insurer managed to turn in upper-quartile performance of -16.1% over one year, it only managed annualised 10-year returns of 5.5% – putting it in the third quartile over that period.
Only Bank of Ireland, Newton and Threadneedle managed upper-quartile performance over one, three, five, seven and 10-year periods.
IMAGE’s first annual survey also showed that average asset allocations at the end of December were 52.9% in UK equities, 26.2% in overseas equities and 14.4% in fixed interest 14.4%.
Index-linked property and cash allocations were 0.3%, 1.8% and 4.4% respectively.
Last week the IMAGE survey showed median returns for balanced pooled pension funds tumbled by nearly 18.8% during 2002.
This follows falls of 11.3% in 2001 and 3.9% in 2000 – marking an average annual fall over the past three years of around 8.5%. Annualised figures for five years are only marginally positive at 0.4% per year.
HSBC Actuaries and Consultants IMAGE survey provides performance statistics using capital growth and contribution payments on a monthly basis for 40 discretionary balanced pooled pension funds and five consensus funds.
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