Statistics revealed by BNY Mellon Asset Servicing show that during the final quarter of 2007, balanced pooled funds achieved a median return of 1.0%.
This is the second consecutive quarter that managers have failed to achieve real rates of return. Results were however, more favourable over a one-year period with the average fund returning 7.1%. This represents a real rate of return of 3.1% against the retail prices index.
Results for balanced pooled funds were also favourable over longer term periods and over three and five years to 31 December 2007, managers achieved average returns of 13.1% p.a. and 13.6% p.a. respectively.
During Q4 2007, active pooled managers achieved some successes when comparing their performance against their respective indices. Most notable were Emerging Market Equity managers who achieved a return of 1.3% in excess of the index, although Pacific Basic ex Japan and North American Equity pooled funds also achieved out-performances of 0.5% and 0.3% respectively.