Jumping Over a Low Hurdle: Personal Pension Fund Performance

Anastasia Petraki, Anna Zalewska
2013 Social Science Research Network  
This paper provides a comprehensive analysis of the annual and of the long-term performance of personal pension funds relative to their Primary Prospectus Benchmarks (PPBs) and T-bills. The study covers 9,659 personal pension funds from across all 30 ABI investment sectors that operated in the UK in the 1980-2009 period. Of these, 4,531 pension funds are compared against their PPBs. We find convincing evidence that pension funds lack challenging long-term performance targets. The existing PPBs
more » ... The existing PPBs are easy to outperform given that funds are allowed to diversify in assets not included in their PPBs. We discuss policy implications of our findings.
doi:10.2139/ssrn.2250847 fatcat:ogs6tabf3fhbla4nlvd53gp534