UK - Most schemes are unsure if target date funds are suitable for the UK pensions market, research by Clear Path Analysis showed.
The research - which surveyed more than 50 of the UK's largest pension schemes - revealed 64% felt unsure target date funds were suitable for the UK.
However, 72% of respondents said they would not rule out target date funds, but would need further understanding of their in-built flexibility to be changed in extreme situations.
This comes as target date funds are expected to be used as the default for the National Employment Savings Trust - to be launched in 2012.
Last month, Global Pensions reported US asset manager Vanguard Investments was planning to launch target date funds in the UK following market demand. (Global Pensions; January 28, 2010)
And at the same time fellow US asset manager AllianceBernstein launched a default investment strategy that used target date funds.
Clear Path's research also showed 76% of trustees believed active management will play significant or vital role in defined contribution by the time NEST fully launches.
However, 41% felt active management would face significant hurdles in gaining the full support of other pension trustees.
Some 36% of trustees felt new active management investment providers, specifically setting up to target DC schemes, would face a period of trial and error in perfecting communication with employee's platforms.
The survey also revealed 53% of UK pension groups felt they spent too little time developing their DC schemes where a legacy DB scheme still existed.
Clear Path Analysis managing director Noel Hillmann said: "Originally we found pension trustees showed mixed interest and concern for active management solutions for DC schemes.
"However, the recurring comment was that DC was coming of age and active management with its innovative and original approaches to investment would drive greater investment choice which near all felt was a positive development."
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