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The stock market rally helped the industrialised world's pension funds recover $1.5 trillion (£917.7 billion) of their value in the first six months of this year, but it will be “some time” before they recoup the $5.4 trillion losses sustained in 2008.
That was the verdict of the Organisation for Economic Co-operation and Development (OECD), which noted that as of the end of June, total assets under management were still 14% below levels seen in December 2007.
The OECD's Pension Markets in Focus report found that the average fund returned an investment of 3.5% in nominal terms during the first half of 2009. It said: “The recovery in pension fund performance has continued through 30 September, 2009, on the back of strong equity returns, but it will be some time before the 2008 losses are fully recouped.”
The countries with the best-performing funds were Norway and Turkey with returns of over 10%, while the average in the US was 4%.
Australian superannuation funds delivered only a 1% return. Specific UK figures were not declared.
The OECD added that the 2009 recovery “represents a major step towards healing the wounds caused by the bursting of two major bubbles within the same decade”.
Reader views (1)
Don't tell Brown,he will just steal more money from them.
- Frank, Bournemouth, England, 26/10/2009 21:42
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