Pensions - Articles - Good trustees have no need to panic in market turmoil

 Richard Butcher, Managing Director of PTL, said: “Firstly, we are very long term investors. Thus we have time on our side. If anything volatility gives us opportunity to buy while relatively cheap. 

 “Secondly, good trustees will have structured their investments such that the volatility is within their appetite and tolerance for risk. They'll only panic if they haven't.

 “Thirdly, if we react poorly to this turmoil our actions are likely to produce poorer long term returns. There is plenty of research that emotive buying and selling tends to be poor buying and selling. As good trustees we must block out short term "noise".

 “This isn't to say trustees should be complacent. They should be mindful that short term volatility can lead to long term structural change (ie look for trends) and they should, in the case of DB, monitor the employer covenant to see how they are impacted by market changes ie has their tolerance of risk changed.

 “The only "worried trustees" are trustees who haven't done their job properly.”