Slow decision-making is the greatest challenge facing pension funds, according to a survey conducted at Mercers European Investment Forum.
Tom Geraghty, European head of Mercers investment consulting, commented: As witnessed throughout last years market turmoil, traditional governance structures can slow down a pension funds response to market changes and result in considerable losses. A more dynamic governance model, which might involve delegation of some decision making and implementation responsibility, is emerging as a more practical solution for some clients.
The majority of participants (83%) also felt the current trustee governance model is out of date, with 45% saying it could be improved by delegating some decision-making externally.
Attendees at the investment forum, held in Dublin on 13-14 May, included pension fund representatives, investment managers and consultants.