UK pension funds received negative yearly returns for the first time since the last downturn at the start of the decade, according to BNY Mellon Corporation. The global financial services company said however that the medium-term outlook was favourable despite the current financial volatility.
Estimates released by BNY Mellon Asset Servicing showed the average UK pension fund achieved an estimated weighted average return of minus 9.8 per cent for the year ending 31 December 2008. Results were more positive in the medium term, with the average pension fund achieving an estimated return of 1.7 per cent a year for the three years to 31 December 2008. Returns were even more promising over a five-year period with funds achieving an estimated weighted average return of 6.6 per cent, according to BNY Mellon.