News
CAPS Pooled Pension Fund Update for May 2007
Pooled performance
- Balanced pooled funds achieved a median return of 2.7% in May 2007 (2.2% in April 2007)
- Over one, three and five years to 31st May 2007, Balanced pooled funds returned 17.4%, 17.0% p.a. and 9.0% p.a. respectively
- Over 10 years to 31st May 2007 these funds have returned 7.3% p.a.
- Active UK Equity managers returned 2.6%, net of fees, for the month. This was 0.2% behind the FTSE All-Share index of 2.8%
- Net median performance against index performance for May 2007 is detailed below:
| Section | Net Median Return (%) | Index Return (%)
| | Balanced | 2.7 | -
| | Consensus | 2.8 | -
| | UK Smaller Companies | 2.2 | 2.3
| | UK Equity – Standard | 2.6 | 2.8
| | Overseas Equity | 3.9 | 4.4
| | Global Equity | 3.4 | -
| | North American Equity | 4.8 | 4.9
| | European ex UK Equity | 2.6 | 3.1
| | Pan European Equity | 2.4 | 3.1
| | Japanese Equity | 2.1 | 2.9
| | Pacific Basin (ex Japan) | 5.6 | 3.8
| | Emerging Market Equity | 6.5 | 6.1
| | UK Bonds – Standard | -0.8 | -0.9
| | UK Bonds – Long Term | -1.2 | -1.5
| | International Bond | -0.8 | -0.9
| | Index-Linked | -1.5 | -1.3
| | Cash | 0.5 | 0.5
| | Property | 0.6 | 0.7
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Markets
- There were positive returns across each of the major equity markets in May 2007
- The highest performing market sector was Emerging Market Equities (6.1%), followed by North American Equities (4.9%)
- The lowest performing equity sector was UK Equities which returned 2.8%
- Cash (0.5%) performed ahead of UK and Overseas Bonds, which both returned -0.9% over the month
- Property provided the best non equity return of 0.7%. The lowest overall return was provided by UK Index Linked Gilts which returned -1.3%
Balanced fund asset distributions
- UK Equity weightings increased slightly over the month, from 46.5% to 46.6%, this was as a result of manager movements
- Positive relative performance, combined with manager movements meant that weightings were boosted from 9.4% to 9.7% in North American Equities, and from
4.9% to 5.3% in Pacific ex Japan Equities
- Weightings also rose in European and Emerging Market Equities, and the respective end of May weightings of 15.2% and 3.2%, represented new highs for both
of these sectors
- A combination of poor relative performance, and manager movements meant that weightings fell in UK and Overseas Bonds as well as Index Linked Gilts
- Over the month, weightings in Cash fell by 0.2% to 5.7%, however weightings in Property increased by 0.1% to 0.8%
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 £449 billion in pooled funds, both balanced and specialist.
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