Statistics compiled by the consultancy show that in the 12 months to 30 September 2008 the top 5 per cent of Hewitt’s client base – those who it says followed the greatest part of its advice – recorded a positive average annual return of 3.2 per cent. Over the same period, the top 5 per cent of pension schemes, according to WM All Funds, recorded negative returns of -0.6 per cent.
Andrew Tunningley, head of Hewitt’s investment consulting team in the UK says: “In the context of some of the worst financial market declines in modern history and the ensuing global volatility, the importance of the right investment advice can be seen more clearly than ever in these results. Quite simply, clients who responded to our advice by derisking investments and diversifying their asset portfolio have been better off as a result. In fact, a direct correlation can be seen between the level of advice specific schemes have implemented and their respective returns over the period.”