The value of small and medium sized company pension funds was hit by volatile stock markets during the second quarter of the year, figures showed yesterday.
Balanced pooled pension funds, which manage schemes on behalf of small and medium-sized companies, saw their value fall by an average of 4.5 per cent during the three months to June, the first drop since the beginning of 2003, according to investment information group Mellon Analytical Solutions.
The group blamed the fall on a downturn in equity markets during the second quarter of the year, with the FTSE All Share Index dropping by 1.8 per cent during the period, while European equities fell by 4.7 per cent.
But it added that during the past 12 months funds had returned an average of 16.1 per cent, while they had grown by 15.1 per cent over three years and 6.6 per cent over ten years.
Property produced the best return during the second quarter of the year, with property investments increasing by 5.4 per cent, meaning property has now given positive returns in every quarter of the past 11 years.