Pension managed funds fall slightly

Group pension managed funds fell back slightly over the month of May, with the average fund returning -1.0%, according to Heissmann Consultants.

However, returns for the year to date were positive due to gains made earlier in the year. The average managed fund returned 2.9% for the first five months of 2004. For the 12 months to the end of May the average return was 14.2%.

Unfortunately, longer-term returns are not as strong, reflecting the poor performance of equity markets between 2000 and 2003, the consultants found. Over the three years to end May 2004 the average fund has returned -4.4% a year. In the five-year period ended May, pension managed funds have, on average, returned 0.7% annually. The 10-year period to the end of May 2004 saw managed funds return 9.1% on average.