UK - British pension funds have posted a negative 8.9% return for 2001 beating earlier predictions, according to new research from the WM Company.
Despite equities posting double digit losses - with the exception of Pacific ex-Japan and other international equities - the returns were better than expected, with most asset classes producing results better than the WM’s initial predictions at the start of the year.
WM’s new figures found that whilst UK and North American equities posted returns of -12.6% and -10.4% respectively, they were still superior to the initial predictions of -13.2% and -11.5%. The new research is based on actual performance across the whole year, whereas the initial predictions used a mix of data from the first three quarters of 2001 and fourth quarter projections.
Whilst Japanese equities posted the biggest losses of the year, like their UK and US counterparts, they too produced better than expected returns. The original predictions had the asset class posting a loss of 27.9%, as opposed to its true return of -26.5%.
Similarly, fixed income produced returns in excess of the WM’s predictions earlier this year, with overseas bonds posting a result more than double what was originally predicted. Overseas bonds posted a 4.9% return for the year, whilst UK bonds had a 4.2% rate of return, one point better than the WM envisioned in January.
Real estate was the best performing asset class last year, posting an actual return of 7.6%. Back in January, WM had property down as returning 6.2% for the year.
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