Trustees demand greater access to technology to support their role

The study, carried out by the Pensions Management Institute on behalf of River and Mercantile, surveyed almost 100 trustees and found that a clear majority of respondents felt they now needed greater informational support in their role.

Seventy-six per cent of respondents reported that their scheme needed better access to tools to help monitor the progress of their investments, and to evolve investment strategies to meet long-term objectives.

Around 84 per cent stated that schemes should have access to real-time performance data, while 59 per cent said this was a priority for their scheme in the coming year.

Ajeet Manjrekar, co-head of River and Mercantile, argued that the pandemic has “challenged the best-made journey plans for many [defined benefit] schemes, particularly given the shift in clarity of covenant support going forward”. 

“This has led trustees to rapidly embrace technology solutions that enable them to access more timely and accurate information, putting them in control. In fact, so entrenched has this approach become that the shift to continuous governance appears to be permanent, with most trustees believing the quarterly meeting cycle has now lost its relevance.”

Although he welcomed the widespread adoption of technology, Mr Manjrekar cautioned that continuous governance “does not mean dissecting past performance on a more regular basis”.

“Trustees want forward-looking tools that aid their decision-making and information that supports their strategic and governance needs,” he said.

“That means advisers must not only be able to accommodate shorter, more regular trustee meetings, but also provide scheme information in a straightforward interactive format to facilitate better decision-making and full transparency to stakeholders.

“This is key to supporting trustees in getting their scheme funding back on track.”