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11.07.2014 17:00:00

The hidden risks of going passive - Do low costs justify the risks of pension schemes going passive?

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The hidden risks of going passive

July 2014

Neil Walton, Head of UK Institutional Business Development Group
Alistair Jones, UK Strategic Solutions

Do low costs justify the risks of pension schemes going passive?

The retirement security of thousands of pensioners could depend on the outcome of the Government�s consultation on whether local authority pension funds should switch to passive investment management, which closes this week. Ahead of this deadline Neil Walton, Head of the UK Institutional Business Development Group and Alistair Jones, UK Strategic Solutions take a look at the sometimes unforeseen consequences of going passive.

The Government is currently looking at whether as much as �85 billion of local authority pension assets could be moved from active to passive management. We think the Government should proceed with care. While we would agree that index investing has something to offer investors on a tight budget or with limited resources, we also think they need to be aware of its limitations.

[...]

         >>   Watch 60 seconds with Neil Walton
        
 >>
   Read article by Alistair Jones (7pages)

  

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Schroders Switzerland

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