Active management is set to play a significant role in defined contribution (DC) pension plans by 2012's launch of the National Employment Savings Trust (NEST), say 76 per cent of UK pension groups.

Research conducted by Clear Path Analysis in preparation for an upcoming report, New Active Management Solutions for DC Pension Schemes, shows that of the over 50 pension schemes questioned, active management strategies were widely seen as an important step in the evolution of DC plans.

Forty-one per cent of trustees said active management will face 'significant hurdles' when it comes to gaining full support from other pension trustees, and 53 per cent of groups feel they do not spend enough time developing DC schemes where a legacy defined benefit (DB) one still exists.

Target date funds split the respondents, with 64 per cent of UK pension groups feeling 'unsure' regarding their suitability for the UK market, although 72 per cent of them said this would not mean they would preclude them from a new pension scheme selection process. Instead, they feel they need further understanding of their flexibility to be changed in the case of extreme situations.

Thirty-six per cent of trustees also felt that new active management investment providers, specifically those setting up to target DC schemes, will face a period of trial and error in perfecting their communication with employee platforms.

"Originally we found pension trustees showed mixed interest and concern for active management solutions for DC schemes," said Noel Hillmann, managing director of Clear Path Analysis. "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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