Best and worst: Managed Pension Funds

Click to follow
The Independent Online
A PENSION invested in Provident Life's Gold S&F Mixed Growth fund would have grown by 5 per cent annually over the last three years, leaving the fund at the bottom of the league table, writes Caroline Merrell.

John Moret, the company's pensions manager, said two factors had affected performance: the weighting of the fund in smaller firms and the small size of the fund.

The fund is managed by Singer & Friedlander. Provident Life switched management of all its other funds to Schroders earlier this year, and Mr Moret said it was considering switching the management of the mixed growth fund as well.

Also trailing in the three-year table is the Lifetime Managed Security Fund, a low-risk fund invested mainly in cash and gilts, and managed by the Investment Bank of Ireland - which also runs the top performer in the table, Lifetime Managed Opportunity.

This fund has grown by about a third a year over the three years. It is 90 per cent invested in equities, with exposure to smaller markets and high-growth companies in the UK and areas such as Australia and Hong Kong.

Providence Capitol says its Special Markets fund has doubled in value over the three years because of a very active management strategy.

Talal Shakerchi, European portfolio manager, said the fund will often show extreme volatility, adding that the fund has a high-risk but high-reward profile.

At the moment, the favoured areas for investment by most fund managers are the Far East and Latin America, with some funds investing in commodities such as gold.

----------------------------------------------------------------- MANAGED PENSION FUNDS ----------------------------------------------------------------- The best % growth 1 Lifetime Managed Opportunity 105.94 2 Prov Capitol Special Markets 100.15 3 Century NEL Perp Managed 95.50 4 Perpetual Managed 94.24 5 General Portfolio Perpetual 93.06 The worst 199 Ideal Insurance Managed 25.59 200 Century Life Managed 21.05 201 Lifetime Managed Security 20.56 202 Windsor Open Plan Managed 18.70 203 Prov Life Gold S&F Mixed 15.92 ----------------------------------------------------------------- The table show the increase in value over the three-year period to 30 November 1993, offer to bid. Source: HSW -----------------------------------------------------------------