The Consultant



I am concerned about the view that passive market capitalisation or index bond strategies are ‘good things’ for pension fund investors. They may have some good points in that they are cheap and well understood but they actually have many, many faults which could hurt pension funds.

Issues I have include credit concentration, wrong duration, wrong escalation, wrong credit quality – I could go on. They are attractive for providers because they give them the opportunity of operational leverage: the

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