The average group managed pension fund returned -4.3 per cent during the second quarter, bringing down the average year-to-date return to 1.4 per cent, according to Becketts employee benefits consultants.

The firm's pension fund Investment Review to June 30th, 2000, said uncertainty in equity markets continued in the second quarter as central banks announced interest rate increases designed to restrain inflation.

Competition between "old" and "new" economy stocks continued as the technology, media and telecoms sector underperformed the market.