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Why the LGPS should not move to a passive investment strategy

Passive management will hit scheme members and carries heavy risk

The active versus passive debate continues. In mid-July we submitted Threadneedle’s response to the Department for Communities and Local Government consultation regarding the Local Government Pension Scheme (LGPS).

Having recognised that merging the 89 funds that make up the LGPS would incur prohibitive costs, the government is toying with a compulsory, large-scale move by LGPS Funds to passive investment.

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