Sections

UK pension funds marking time – WM

UK – UK pension funds - up an “unspectactular” 1.1% in the second quarter - are currently marking time, says performance measurement firm WM Co.


“The average UK pension fund grew steadily if unspectacularly, at a rate of 1.1% for the quarter,” WM said in a release.

“Equity performance drove the overall gain for the quarter, with UK equities up two percent, North American equities nearly three percent and European equities almost four percent. Asia Pacific equities were down, but this was largely a function of currency weakness relative to sterling.”

“In current market conditions it is proving difficult to find sources of incremental return,“ said Graham Wood, a senior consultant at the firm. “Pension funds continue to mark time as they wait for global markets to demonstrate a clear sense of direction.”

Bond returns declined as market expectations of interest rate rises increased, WM said. “UK bonds were hit the hardest, down over one percent for the quarter, but non-UK bonds and UK index-linked gilts also suffered small declines.”

Real estate was up almost five percent – “the best performing asset class in the quarter”.

WM said: “The investment pattern for the quarter continued to indicate money released from equities – around 2.3 billion pounds for funds in the survey – and directed toward bonds, both conventional and index-linked.

“Benefit payments exceeded contributions and investment income, leading to net disinvestment from funds in aggregate.”

Edinburgh-based WM is part of State Street Corp.

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2563

    Asset class: Mid & Small Cap Equities.
    Asset region: Global.
    Size: USD $130m.
    Closing date: 2019-09-27.

  • QN-2564

    Asset class: Large Cap Growth Equities.
    Asset region: Global Developed Markets.
    Size: USD $130m.
    Closing date: 2019-10-04.

  • DS-2567

    Closing date: 2019-10-02.

  • QN-2569

    Asset class: Local Currency Bonds.
    Asset region: Global Emerging Markets.
    Size: $500m.
    Closing date: 2019-10-10.

Begin Your Search Here
<