UK - Pension funds should not take precipitate action in response to current market volatility, consultants William M. Mercer has warned.
Andy Green, head of investment strategy at Mercer, said: We would caution trustees against taking rash decisions at this time. What is needed is a measured reassessment of investment strategy against current market and economic conditions.
Pension fund investment strategy is set with a long-term framework in mind, and implementation of any strategic change will require careful planning in the medium-term.
Green warned that until orderly markets return, substantial transactions should be avoided unless absolutely necessary.
He added: Any action needed will depend on the particular circumstances facing individual pension funds.
“Considerations should include whether trustees have already adopted a defensive strategic position.”
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