UK pension funds last year returned 15.8%, the best annual return for four years, according to performance measured by Russell/Mellon Caps.

Global equity markets surged in the final nine months of 2003 after hitting low points in March. Continental shares were the best mainstream equity asset class and returning 29.3%, UK shares returned 20.9%, Japanese equities were up 22.8% and US equities rose 15.1% in the year to December 2003.