Performance measurer WM Company says UK segregated pension funds returned 17% on a weighted average basis in 2003 – but admits that there will be a limited impact on deficits.
The WM figures compare to Russell/Mellon CAPS, which said that funds returned 16% on a weighted average basis last year.
“The year’s poor start turned out to be the tail of the bear market,” says Graham Wood, WM’s executive director of consulting. “After March, UK pension fund returns rose to gain 17% for the year. This is the first positive performance for pension fund returns since 1999.” He adds:”With these returns, trustees will be feeling happier.”
But he says there would be a “very very limited” number of funds which would move into surplus as a result of the returns.