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Irish Pensions Magazine Spring 2013
Some key questions:
• Are trustees properly understood by investment
consultants and managers?
• Do all involved engage in constructive dialogue
with them?
• Do they have the confidence to do so?
• Do they have the knowledge to do so?
• Do they have the essential time to accumulate this
knowledge?
What is the problem for someone to honestly say - I
don’t have the time I would like to have to prepare
for investment meetings? Even allowing for their
significant good will, trustees cannot be expected to
burn midnight oil before meetings on top of all their
other duties.
How big a problem really is it to say I don’t understand
something, or I am not comfortable in that discussion?
Howwould the investment process improve if it became
normal for all interested parties to be open about their
completely understandable difficulties engaging with
the investment industry?
Is this the elephant in the room? From lengthy
experience in the industry, full time professionals
would never be so reticent, not least because they
will recognise how much there is still to learn.
The investment challenge
The investment challenge for pension trustees is
enormous at the best of times. And concerns are
not limited to trustees, but also employers who are
increasingly worried about, amongst other things, the
investment outcome from their contributions. Throw
in regulatory responsibilities and the landscape
becomes ever more like a minefield.
These are not just challenges to the efficacy of trustees.
They can impact the very willingness of trustees, and
potential trustees, to participate in pursuing a healthy
pension outcome for their colleagues. Is this optimal?
Article Author
James Meenan
Chief Executive
JNM Investment Governance
Analysis
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