UK - Balanced pooled funds soared in value over the last quarter as the equity market showed signs of recovery, the latest IMAGE survey by HSBC Actuaries reveals.
The report showed that in the three months to June 30, the median for pooled funds increased by 11.4%. And the median since the start of the year has increased by nearly 7%.
But returns in the year to the end of June are still negative – showing a median return of -6.4%.
This negative figure is blamed on the results of the third quarter of 2002, when the UK equity market experienced its biggest three-month fall in 12 years.
JPMorgan Fleming’s balanced fund was the top performer for the 12 months to the end of June with a return of -1.6%.
Over three years, UBS’s balanced managed fund topped the table with a return of -4.8%. And over five years Royal London Asset Management headed the list with a return of 0.2%.
Glasgow Investment Managers remained bottom of the table over one, three and five years, but was best performer over the second quarter of this year with a return of 16.4%.
HSBC Actuaries’ associate consultant David Lyons said the strong bounce in markets in the second quarter was concentrated in medium and smaller companies, as opposed to FTSE100 stocks. This has favoured managers with a small and mid-cap bias.
But Lyons warned: “Pension scheme trustees cannot be complacent and the focus will now shift to whether gains can be held.”
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