28 September 2007
The total surplus in the pension schemes of FTSE 100 companies
has improved to £22 billion, even in the face of the downturn
in global markets, according to research from Deloitte. Pension
scheme investments are generally geared towards a higher proportion
of funds in equities and other risky investments. This enables them
to grow the assets faster than their liabilities in the long term.
Although there has been recent problems in markets linked to the
banking industry and lending, the return on the UK equity market
since the turn of the year has been around 5%.