UK - The FTSE4Good Index is of little use to pension funds as a benchmark, claim fund managers.
But many insist the index has offered value in its promotion of socially responsible investment practices within UK companies.
Jupiter Asset Management head of environmental research Emma Howard-Boyd said a small number of pension fund clients were interested in seeing how their segregated funds perform in comparison to the FTSE4Good, but that most preferred to measure their performance against mainstream indices.
She added that the index had raised the profile of corporate social responsibility.
The index – which marked the one-year anniversary of its launch yesterday – now contains 309 UK companies who meet high standards of ethical and environmental practice.
However, only three quarters of the companies listed on the FTSE100 have measured up to the standards.
Morley Fund Management SRI analyst Tony Belsom, who said that MFM does not use FTSE4Good, claimed the index is not taken seriously.
“Our competition is not in some ethical niche. It is the mainstream benchmarks that we are up against,” he added.
Life expectancy in the UK saw no improvement between 2015 and 2017 as the number of people aged over 90 hit a record high, latest Office for National Statistics (ONS) data reveals.
Self-administered pension funds spent £14bn on payments to pensioners in Q2 2018, but only received £11.4bn of contributions (net of refunds), latest Office for National Statistics (ONS) data reveals.
The Pensions and Lifetime Savings Association (PLSA) has named the 17 members of its inaugural policy board after a competitive application process with 60 candidates.