EUROPE - Two surveys on pension fund results have shown modest positive returns across Europe.

The WM Company, the Edinburgh-based performance measurement company owned by fund manager State Street, found UK asset returns were up 2.2% in the third quarter and 4.9% for year-to-date.

UK equities performed more strongly than overseas shares for the pension funds, as the impact of the rise in sterling weighed against foreign asset rises. UK equities were up 2.7% and 5.6% for the first nine months, while overseas shares were up 0.3% (2.7%).

Property assets showed another 3.3% rise taking year-to-date returns to end September to 11.5%; bonds were up between 2% and 4% for the quarter and the year.

WM Company said asset allocation was broadly unchanged at 70% equities and property and 30% bonds and cash.

UK-based professional services firm Towers Perrin completed its review of the impact of global capital markets on third quarter results for defined benefit pension plans in different countries. The review shows market impact on investment performance and plan liabilities.

In the UK, there has only been less than 1% improvement in assets to liabilities in the first nine months. In the third quarter there was a 1% fall as lower longer-dated nominal bond yields raised future pension liabilities due to the benchmark discount rate being cut to 5.25%.

Across the euro-zone it was a flat quarter for pension assets, Towers Perrin said. Negative domestic and international returns were offset by positive fixed income returns from rising bond yields but pension liabilities suffered from a cut in the discount rate to 5% as longer-dated nominal bond yields priced in more benign inflation expectations.