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Barclays Bank Study Finds Dividend Cuts Hurt Equities' Popularity.

Knight Ridder/Tribune Business News, February, 2002

By Alex Brummer, Daily Mail, London Knight Ridder/Tribune Business News

Feb. 22--No wonder pension funds, like that at Boots, are switching out of shares. The Barclays equity-gilt study released today will make miserable reading for those with the larger part of their savings in equities.

Over the last year the total return from equities was minus 13.8 percent after inflation against a positive return of 0.6 percent for gilts. The biggest winner was corporate bonds which produced a real return of 6 percent in 2001.

That is not the end of the bad news for holders of equities. Over the last two years total returns from shares plunged 21.1 percent. This is the worst return since the 1973-74 period when Britain was deeply mired in the three-...

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