Over £60 billion invested in underperforming pension funds

Some of the UK’s largest individual pension funds are failing to deliver value for money, according to research by Hargreaves Lansdown.

Its Pension investment performance report found that tens of billions of pounds are invested in the UK’s largest pension funds, which have underperformed over the last 10 years.

Over the last decade, the research found that 14 of the 20 largest funds, containing £62 billion, have underperformed. According to Hargreaves Lansdown, this is a consequence of disengagement by private investors, employers and trustees.

The research also found:

  • Closed funds have done worse than open funds.
  • Many pension funds are neither truly active nor truly passive.
  • Funds investing in the same areas can produce astonishingly different returns.