Pooled pension funds have suffered two consecutuve years of negative growth for the first time since 1973 and 1974 according to the CAPS pooled pension update for the fourth quarter of 2001.
CAPS says the poor performance of equities is mitigated to some extent by fixed income performance of 3 per cent and property of 5.6 per cent last year.
For UK equities, just over half of funds beat the index after fees. The UK equity standard median stands at -13.1 per cent with the FTSE all share at -13.3 per cent.
Overseas equities provided the biggest disappointment mainly because funds overweighted European equities against US equities seeing a loss of 16.8 per cent against the index which saw falls of 14.1 per cent.
The survey also says that while equity returns have fallen, volatility has doubled with funds' racking errors increasing substantially as a result.
For the five years ending December 2001 the funds' returns on UK and Overseas equity stood at 7.3 per cent and 9.4 per cent compared with 16.1 per cent and 12.1 per cent for the five years to 1996.