Shadowing benchmark set to benefit investors

Jonathan Arthur, manager of Deutsche Life's Balanced pension fund, believes staying close to th...

Jonathan Arthur, manager of Deutsche Life's Balanced pension fund, believes staying close to the benchmark will bring investors positive returns going forward. However, he is concerned about the UK Government's long-term finances and their impact on the market. The £800m fund's aim is to outperform its benchmark by 1% on a rolling three-year basis. Over the last 12 months to 31 March, on a mid to mid basis, the fund fell by 23%, which was 0.5% lower than its benchmark; the CAPS Balanced median. In the five years to 31 March it dropped 2.8%, outperforming its benchmark's return of -3.3%...