Pension fund performance in the UK was positive for a second straight year with a 10% increase, research has indicated, however a UK law firm believes that 2005 will not be all roses for the pensions market.
According to research firm Russell/Mellon pension fund returns have been put back in the black over a three-year period, with an estimated weighted average of 3.6% per annum, ahead of inflation at an estimated 2.9% per annum. The company looked at 664 funds worth a total of £171bn. Equity markets backed up the good performance with UK equities returning 12.8%, while Europe ex-UK (13.4%), and emerging markets (17.1%) also did well. In terms of sectors, property was the best performer with a total return of 16.2%, while index-linked gilts returned 8.5%. UK gilts (6.6%), overseas bon...
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