Balanced pooled funds achieved a median return of 0.3% in August 2005, according to CAPS Pooled Pension Fund Update.
Over one, three and five years to 31 August 2005, balanced pooled funds returned 21.1%, 10.8% p.a. and -0.2% p.a. respectively. Over 10 years to 31 August 2005 they returned 6.8% p.a. Active UK Equity managers returned 1.3%, net of fees, for the month. This was just ahead of the FTSE All-Share index of 1.2%.
Equity results were mixed during August 2005, and UK and Japanese Equities produced the only positive, major equity market performances of the month, returning 1.2% and 4.7% respectively.
North America provided the poorest equity and overall index return of -2.6%, while European ex UK (-1.6%), Pacific ex Japan (-2.0%) and Emerging Market Equities (-1.3%) also performed poorly. Other asset classes generally achieved positive returns over the month with Index-Linked Gilts producing the best non-equity return of 2.1%.
Property (1.6%), UK Bonds (1.4%) and Cash (0.4%) also provided positive market returns. Overseas Bonds achieved the only negative non-equity return of -0.4%
In balanced fund asset distribution news, managers have continued to move money out of UK Equities and into Overseas Equities.
As a consequence, the average Balanced pooled fund weighting in UK Equities has fallen from 50.6% to 50.1% over the last two months. At the same time the average weighting in Overseas Equities has risen from 33.2% to 34.0%.
North American and Japanese Equities were the main beneficiaries of this new overseas money during the last two months. Over this period, North American Equity weightings only rose by 0.2%, from 8.0% to 8.2%, however, due to poor relative performance in August.
The average Japanese Equity weighting has risen from 5.3% to 5.7% since the end of June. A good relative return in August was a contributing factor.