IRELAND - The average Irish Pension Managed Fund gained nearly 13% for the first ten months of 2005, but increasing complexity in the market is hampering trustees, said Mercer Investment Consulting.
Despite the 12.8% increase, pensions investment has become an increasingly complex environment for trustees following the introduction of a series of new regulations, Mercer argues.
Such regulations have transposed the EU IORPS Directive into Irish law, and make it mandatory for pension schemes to have a Statement of Investment Policy and Principles (SIPP) in place.
A recent Mercer survey revealed 55% of trustees’ saw lack of knowledge as the greatest barrier to investment in hedge funds.
John Grant, senior Mercer investment consultant, said: “Gone are the days of simply passing the assets to an investment manager and expecting them to provide above average returns”. The investment arena was full of jargon and for most trustees, the terminology alone was a significant barrier, he added.
Thomas Geraghty, senior Mercer investment consultant said investment markets were never static and would continue to evolve and respond to changing conditions and legislation. “Education is an ongoing process and, just as the newly introduced directive requires trustees to review their SIPP at least triennially, trustees should look to ensure that they keep up to date with developments in the investment market place”.
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