Negative returns over three and five years for pensions

russell/mellon caps survey shows larger funds outperforming smaller counterparts

The Russell/Mellon Caps pension fund universe has now failed to produce a positive annualised real rate of return over three and five years. A weighted average return of -12.9% for 2002 marked the third consecutive year of negative returns for the survey of 1,527 pension funds with assets of £311bn. Over 10 years the survey notes real returns come in at 3.2%pa above inflation, measured by earnings, and 4.8%pa if measured against rises in retail prices. The median return for pension funds was -15.5% for 2002, indicating that larger funds outperformed their smaller counterparts. Caps sa...