News
CAPS Pooled Pension Fund Update January 2007
Pooled performance
- Balanced pooled funds achieved a median return of 0.1% in January 2007 (2.8% in December 2006).
- Over one, three and five years to 31st January 2007, Balanced pooled funds returned 8.1%, 14.3% p.a. and 7.7% p.a. respectively.
- Over 10 years to 31 January 2007 these funds have returned 7.0% p.a.
- Active UK Equity managers returned -0.1%, net of fees, for the month. This was 0.2%
- ahead of the FTSE All-Share index of -0.3%.
- Net median performance against index performance for January 2007 is detailed below:
| Section | Net Median Return (%) | Index
Return (%)
| | Balanced | 0.1 | -
| | Consensus | 0.1 | -
| | UK Smaller Companies | 1.7 | 1.2
| | UK Equity – Standard | -0.1 | -0.3
| | Overseas Equity | 0.9 | 1.1
| | Global Equity | 0.4 | -
| | North American Equity | 1.6 | 1.6
| | European ex UK Equity | 1.2 | 1.0
| | Pan European Equity | 1.2 | 0.6
| | Japanese Equity | 0.4 | 0.7
| | Pacific Basin (ex Japan) | -0.3 | 1.2
| | Emerging Market Equity | -1.1 | -1.1
| | UK Bonds – Standard | -1.1 | -1.3
| | UK Bonds – Long Term | -1.8 | -2.5
| | International Bond | -1.4 | -1.3
| | Index-Linked | -1.7 | -1.5
| | Cash | 0.4 | 0.5
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Markets
- Each of the major overseas equity markets saw positive returns in January 2007, with
- the exception of Emerging Markets.
- North America and Pacific ex Japan achieved the best equity market returns of 1.6% and 1.2% respectively, whilst Emerging Markets and UK gave the poorest returns of -1.1% and -0.3% respectively.
- Property gave the best non-equity market return of 0.8%, followed by Cash (0.5%).
- There were negative returns in the bond markets with UK and Overseas Bonds both achieving returns of -1.3%.
- Index Linked Gilts gave the poorest asset class return of -1.5%.
Balanced fund asset distributions
- UK Equity weightings reduced from 47.0% to 46.8% over the month due to a combination of poor relative performance and managers moving money out of the sector.
- Weightings in European, Japanese and Pacific Basin ex Japan Equities increased to 14.1%, 5.7% and 4.7% respectively as managers moved money into these sectors.
- The end of month weighting of 14.1% in European Equities represented a new high for this sector since our records began at the end of 1989.
- Poor relative performance combined with manager movements meant that UK Bond weightings fell by 0.2% to 7.1%.
- There were also decreases in Property and Overseas Bond weightings due to manager movements.
- By contrast weightings in Cash increased by 0.3% to 5.9%.
Survey size
- CAPS Pooled Pension Fund Update is a Mellon Analytical Solutions service. The Pooled Pension Fund Database covers the largest and most representative sample available to UK pension funds’ trustees. Mellon Analytical Solutions currently covers 77 separate asset managers who manage over £422 billion in pooled funds, both balanced and specialist.
MAS information disclaimer
The performance analysis and other information in this (report and/or press release) are based on historical data and are intended for informational purposes only. Past performance is not a guarantee of future performance. This (report and/or press release) does not constitute investment advice, nor is it an offer or recommendation of any security, investment product, service or firm.
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