Editing Index fund (section)

==Pension investment in index funds==

Research conducted by the [[World Pensions & Investments Forum|World Pensions Council (WPC)]] suggests that up to 15% of overall assets held by large [[pension fund]]s and national [[social security]] funds are invested in various forms of passive strategies including index funds, as opposed to the more traditional actively managed that still constitute the largest share of institutional investments<ref name="Rachael Revesz">{{Cite news|author=Rachael Revesz |title= Why Pension Funds Won't Allocate 90 Percent To Passives |url= http://europe.etf.com/blog/9450-why-pension-funds-wont-allocate-90-percent-to-passives.html |work=Journal of Indexes |date=27 November 2013 |access-date=June 7, 2014}}</ref> The proportion invested in passive funds varies widely across jurisdictions and fund type.<ref name="Rachael Revesz"/><ref name="Chris Flood">{{Cite news |author=Chris Flood |title=Alarm Bells Ring for Active Fund Managers |url=http://www.ft.com/cms/s/0/22b03864-d535-11e3-9bca-00144feabdc0.html#axzz33xgBDzEz |archive-url=https://ghostarchive.org/archive/20221210221252/https://www.ft.com/content/22b03864-d535-11e3-9bca-00144feabdc0#axzz33xgBDzEz |archive-date=2022-12-10 |url-access=subscription |work=FT |date=11 May 2014 |access-date=June 7, 2014 |url-status=live }}</ref>

The relative appeal of index funds, ETFs and other index-replicating investment vehicles has grown rapidly<ref>{{Cite news|author=Mike Foster|title=Institutional Investors Look to ETFs |url=http://media.efinancialnews.com/story/2014-06-06/institutional-investors-look-to-etfs?ea9c8a2de0ee111045601ab04d673622 |work=Financial News |date=6 June 2014 |access-date=June 7, 2014 |url-status=dead|archive-url=https://web.archive.org/web/20140715001220/http://media.efinancialnews.com/story/2014-06-06/institutional-investors-look-to-etfs?ea9c8a2de0ee111045601ab04d673622 |archive-date=15 July 2014}}</ref> for various reasons ranging from disappointment with underperforming actively managed mandates<ref name="Rachael Revesz"/> to the broader tendency towards [[cost reduction]] across public services and social benefits that followed the 2008-2012 [[Great Recession]].<ref name="europe.etf.com">{{Cite news|author=Rachael Revesz |title=UK Govt. Leading Way For Pensions Using Passives |url=http://europe.etf.com/europe/features-a-news/9778-uk-govt-leading-way-for-pensions-using-passives.html?start=1&Itemid=129 |work=Journal of Indexes - ETF.com |date=7 May 2014 |access-date=June 7, 2014}}</ref> Public-sector pensions and national [[reserve (accounting)|reserve]] funds have been among the early adopters of index funds and other passive management strategies.<ref name="Chris Flood"/><ref name="europe.etf.com"/>