One of the most important jobs that pension funds do on behalf of their members is to pick the right asset managers to invest their money. So it’s a shame they are not very good at it.

That's the view of Railpen Investments, the organisation running the £21 billion Railways Pension Scheme, one of the biggest pension funds in the UK. Its answer to its own conundrum? It has largely given up on chasing outperformance over market benchmarks.