Most balanced UK pension funds have devalued over the last five years, a new report suggests.
Less than one in ten balanced UK pension funds have been able to give policyholders positive returns since 2000, the Money Management report said.
These results come in spite of the fact that balanced managed UK pension funds have soared in popularity. These pension funds have proved particularly popular because it is believed that they represent low-risk investments.
The reported losses by balanced UK pension funds could be attributed to the fact that a number of managers of these pension funds rely too much on equities, it has been suggested.
"Having 12 per cent in bonds and 80 per cent equities doesn't sound very balanced to me," financial analyst Mark Dampier of Hargreaves Lansdown told the Telegraph.
He said these so-called balanced pension funds are "badly named and potentially misleading".
"They have also been badly managed, which is par for the course for funds run by insurance companies," Mr Dampier concluded.
Balanced UK pension funds devaluing
Pensions Quote Line
0845 108 0505
Balanced UK pension funds devaluing
Tue, 16 Aug 2005
Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house, Mortgages.co.uk; insuring your car - CarInsurances.co.uk; your life - LifeInsurance.co.uk; and your home - HomeInsurance.co.uk.
1998 - 2008 UK Pensions - Planning before, at the onset and during retirement.
| pensions news |
|---|
| Pension minister wants to reform benefits - Mon, 21 Jul 2008 |
| Pension accounting concerns - Tue, 08 Jul 2008 |
| Just 5 per cent would let Brown handle pension - Fri, 27 Jun 2008 |
| More News |
Pensions Newsletter
Please enter your email below and subscribe to our monthly newsletter
Save on Your Mortgage
Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.
Protect Your Health
Find Critical illness, Life and Private Medical Insurance PMI policies.