Council pension figures are continuing to lobby for active management in case the Treasury renews pressure on the scheme’s funds to use cheaper passive investment.
The Treasury had reportedly been keen to push funds from active management - which seeks to take advantage of market changes - towards passive management, which is designed to broadly perform in line with the market.
It is understood to have recently cooled on the idea.
However, Philip Pearson, head of local government pension scheme (LGPS) investments at consultancy Hymans Robertson, which previously suggested £420m could be saved in investment fees and transaction costs annually by moving all liquid assets to passive management, said the debate was not over.
Mr Pearson said: ‘There’s a greater consciousness of risk and active risk is one of those you can take, but you should only do it if you’re pretty confident that you’re going to be rewarded.’
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