(June 12, 2014) — Four UK public pension funds have hired the services of an active management monitoring service despite the government’s plans to move their assets completely into passive funds.
The pensions of Cumbria and Warwickshire county councils, along with two who preferred to remain anonymous, have signed a deal with Inalytics to provide data analysis and monitoring of fund managers.
The company claims that its analysis aims to “maximise the effectiveness of your search by showing you the managers with the investment skill to rise above the pack”.
Last month the Department for Communities and Local Government published a wide-ranging consultation paper with proposals for cutting costs in local government pensions. This included options for switching roughly £85 billion in active equity funds into passive strategies.
But the deal with Inalytics shows the consultation has not deterred some pensions from investing in active management. Mathew Dawson, treasury and pensions group manager at Warwickshire County Council Pension fund, said: “While our active equity managers are both performing very well, demonstrating manager skill beyond the relative benchmark will provide clear evidence to the investment sub-committee.”
Inalytics declined to comment when asked about the potential effects of the consultation on the new deal.
The consultation is due to close on July 11 and can be viewed here.
Related links: Local Government Pensions Mull Active Management Withdrawal & San Diego Pension Urged to Go Passive and Save on Fees.