Recovering global markets and a heavy investment weighting in equities have helped the UK’s local government pension schemes achieve their best returns for 30 years, enabling many to recoup losses made over the financial crisis.

They have produced a 35% average return in the 12 months to the end of March, according to the WM Pension Fund Performance Measurement System. A year earlier, the average fund lost 17.5%. The MSCI World index rose 49% in the year to last March.