Lack of skills and experience is a key concern.

There is evidence, in the light of the credit crisis, that some aspects of fund management require urgent attention. The skillsets of staff, for instance, have to some degree failed to keep up with growing sophistication. One in five fund managers that have invested in complex financial instruments, such as derivatives, CDOs or structured products, admit to having no in-house specialists with relevant experience. Investors are at greater risk still, with about one in three of the institutions investing in such instruments saying they have no in-house expertise of these. Rating agencies are seen as providing little support: one third of the respondents agree that rating agencies provide an accurate assessment of whether an instrument will default and just 1 percent of respondents think rating agencies are very accurate in predicting defaults.