Figures released by the BVCA reveal that pension fund allocation to private equity fell by 20% between 1996 and 1998. Pension funds accounted for 30% of investment in UK venture capital funds in 1996 but by 1998 this had fallen to 10%. Pension funds continue to view the asset class as illiquid and risky. Research shows that annual returns on UK private equity funds since 1997 average 14.8%, which is higher than the return for quoted equities.