View the article online at http://citywire.co.uk/money/article/a351679
The ten worst performing UK pension funds
Abbey Equity gets the wooden spoon for being the worst performing pension fund managing over £1 billion.
Abbey Equity has been named as the worst performing pension fund where more than £1 billion of money is invested, according to analysts www.howmuchdoineedtoretire.co.uk.
Analysis of the ten worst performing UK pension funds showed £18 million of pension money is languishing in below average pension funds.
The Abbey Equity fund produced the lowest overall result based on its gross income, annual return and peer rating based on fund performance.
It produced a five year gross return of 9.4% on a fund worth over £1.2 billion and an annual return of 1.8%. Over a ten year period, the fund produced a gross income of -12.2% with an annual percentage return of 1.3%.
This was closely followed by the Friends Provident UK Equity fund which had a gross income of 9.3% and annual return of 1.8% over five years. Over a ten year period, the fund had a -10.6% gross income and -1.1% annual return.
Matthew Morris of howmuchdoineedtoretire.co.uk, said the funds’ performances could not be explained as a ‘blip.
‘The main point here is that these are not funds that have simply dipped or had a bad year or two. They fall down on virtually every benchmark. Their performance has been nearly always below average over each of the last ten years and yet they all have more than £1 billion in each of them,’ he said.
‘People would be well-advised to act to find out exactly how their pension pot performed and be prepared to act if they are not happy with what they find to ensure their retirement savings will be fit for purpose when the time comes.'
The top ten worst performing pension funds managing over £1 billion of money are:
1. Abbey Equity
2. Friends Provident UK Equity
3. Scottish Life Managed
4. Clerical Medical Balanced
5. Phoenix Life Exempt Managed
6. Scottish Life Property
7. HSBC Life (UK) Pen Balanced
8. Lincoln Balanced Managed 3
9. Lloyds TSB Managed
10. Barclays Life Managed 2
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
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