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20th June 2019
:: Blog | October 2009 (13 blogs) | Dire pension fund performance turns savers off

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Dire pension fund performance turns savers off
The Guardian’s Patrick Collinson launches a scathing attack on the UK fund management industry in his article published on Saturday.
I don’t think the specific example he has used is out of context with the prevailing 'mood' and I suspect it is this type of investment return that is twisting the knife into some money purchase pension savings. However, I’m sure that there are as many good examples of investment success as there are poor cases, but of course that doesn’t necessarily make newsworthy headlines.
The comment made after the article by ‘mostreverend’ intrigued me though. It is quite a common belief that most final salary schemes were historically weighted with the majority of their funds held in gilts. The subsequent move to equities, it is often argued, is the partial cause of their downfall.
However, according to BNY Mellon Asset Servicing’s pension fund information, at 31.03.2008 (31.03.2000) the average distribution of pension fund assets was UK Equities 27% (53%); Overseas Equities 25% (23%), Overseas Bonds 2% (4%), UK Bonds 26% (11%), Global Index-Linked Gilts 11% (4%), Cash 2% (3%), Property 3% (2%) and Other 2% (0%). (Courtesy: Pensions Pocket Book 2009, Hewitt). See:
Mike Jones, Ltd, October 5th 2009

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