Fears of underperforming the market outweigh the appeal of outperformance for many LGPS fund chiefs, according to a new report.
The report, by investment research firm CAMRADATA, published conclusions reached at a recent roundtable that gathered experts in the local government pension sector.
According to the report, active managers in attendance touted the benefits of owning a select portfolio of thoroughly-researched companies as the best way to invest responsibility.
However, Sean Thompson, managing director of CAMRADATA, said that many local authority pensions pools are opting for passive approaches over active ones.
He said: “Both strategies have got off to promising starts, but the pension fund managers on the panel warned that these are challenging times for active management.
“For many pension funds, the risk of underperformance of the index seems to remain more pressing than the appeal of actively-managed outperformance.”
