U.K. balanced pooled funds returned an average 11% for 2006, according to a survey by Mellon Analytical Solutions. Fourth-quarter returns averaged 4.9%.
U.K. standard equity returned a median 6.7% for the quarter and 16.7% for the year, while emerging market equity returned 12.4% for the quarter and 17.2% for 2006, Mellon found. U.K. bonds dipped 0.1% for the quarter and returned 0.5% for the year. North American equities returned 1.9% in the quarter but were flat for the year.
The survey also found that pooled fund of hedge funds outperformed key equity pooled funds over the five years ended Sept. 30. The median return for MAS' pooled fund of hedge funds universe was 10% per year, compared with median returns of 9% for U.K. equity pooled funds and 7.5% for overseas equity funds.
Mellon's pooled pension fund database covers 79 asset managers who manage roughly £419 billion ($827 billion) in pooled funds, both balanced and specialist.