Adding LODs to a SkeletalMesh with Cloth Simulation does not seem to improve performance.

I have several SkeletalMesh flags with Cloth Simulation in a level I am building.

I noticed a noticeable drop in FPS performance, so I profiled them and found that the flags were heavily loaded with Cloth Simulation.

I wanted to keep the flags fluttering in the wind, so I added an LOD to the flag mesh to only apply the cloth simulation when the player character is close to the flag.

The flag Mesh now only has Cloth Simulation applied at LOD 0 and does not have Cloth Simulation applied from LOD 1 onwards.

I started the game in Play mode and noticed that the flags don’t move when they are far away, and only move when they are close to them and are animated by the Cloth Simulation.

Unfortunately, the game still had a low FPS, and when I checked in Profile, the Cloth Simulation entry was still causing a big bottleneck.

Could I be missing something? Any help would be greatly appreciated.