Balanced pooled funds achieved a median return of 4.2% in May, according to CAPS Pooled Pension Fund Update.
Over one, three and five years to May 31, 2005, balanced pooled funds returned 14.4%, 3.4% p.a. and -0.5% p.a. respectively. Active UK Equity managers returned 3.8%, net of fees, for the month. This was just below the FTSE All-Share index of 3.9%.
In market news, equity markets produced positive returns across the board in May and North American and Emerging Market Equities provided the best equity and overall performances, with both sectors achieving an index return of 8.4%. European ex UK (5.9%) and Pacific ex Japan Equities (5.1%) also performed well. Japan provided the poorest equity index return of 4.0%, however, this sector was still ahead of other non-equity asset classes. Overseas Bonds returned 2.8%, while UK Bonds (1.6%), Property (1.2%) and Index-Linked (0.9%) also achieved returns ahead of Cash (0.4%).
In Balanced fund asset distributions the report found that although managers moved some money into UK Equities, relative performance factors meant that the average balanced pooled fund weighting in this sector reduced from 50.3% to 50.2% over the month. This represented a new low since its records began at the end of 1989. Managers moved money out of North American and Emerging Market Equities. Strong relative performance in overseas markets over the month however, meant that overall overseas equity weightings rose by 0.2% to 32.6%. This represented another all time high.