Balanced Pooled Funds sink in the second quarter
06 August 2012 London
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Statistics released by BNY Mellon Asset Servicing today show that Balanced Pooled Funds had a difficult second quarter of 2012 with median returns sliding back into the red at -2.9 percent.
Balanced Pooled Funds achieved more positive results in the previous consecutive two quarters. However, due to the large negative return recorded in the third quarter of 2011, over a one year period to 30 June 2012, these funds returned -4.1 percent.
Data from BNY Mellon's Pooled Pension Fund Database, which covers the largest and most representative sample available to UK pension funds' trustees, shows that results for Balanced Pooled Funds were more favourable over a three-year period with these funds returning 11.1 percent per annum.
However, the report stated that: “Continued headwinds and uncertainty in the equity markets has resulted in disappointing returns across each of the key equity sectors, both in the UK and overseas.”
Alan Wilcock, performance and risk analytics manager at BNY Mellon Asset Servicing, said: "The poor performance of Europe's equities is no surprise, given re-emerging concerns about the financial health of Europe's sovereigns in the second quarter. This, coupled with economic fragility in the US and China, stoked widespread volatility and in turn impacted investor confidence and equity performance."
Balanced Pooled Funds achieved more positive results in the previous consecutive two quarters. However, due to the large negative return recorded in the third quarter of 2011, over a one year period to 30 June 2012, these funds returned -4.1 percent.
Data from BNY Mellon's Pooled Pension Fund Database, which covers the largest and most representative sample available to UK pension funds' trustees, shows that results for Balanced Pooled Funds were more favourable over a three-year period with these funds returning 11.1 percent per annum.
However, the report stated that: “Continued headwinds and uncertainty in the equity markets has resulted in disappointing returns across each of the key equity sectors, both in the UK and overseas.”
Alan Wilcock, performance and risk analytics manager at BNY Mellon Asset Servicing, said: "The poor performance of Europe's equities is no surprise, given re-emerging concerns about the financial health of Europe's sovereigns in the second quarter. This, coupled with economic fragility in the US and China, stoked widespread volatility and in turn impacted investor confidence and equity performance."
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