@$:[AT]bylinerg:By Alex Wright[AT]bodyindent:Don't hit the panic button if your pension scheme is losing money during the current financial crisis.That is the message from Argus' executive vice-president Lauren Bell and Bill McKay, lead portfolio manager for Argus Financial Ltd., who said investors will lose out if they switch the strategy of their investments now when the market is down.But with many pension holders getting a shock when they open their statements over the past month, they advise instead to sit tight for the moment and reap the rewards in the long term.With the global financial markets falling across the board, including the US market dropping 20 percent, Europe 25 to 30 percent and Asia and the emerging markets even more, they have had to face a number of challenges, according to Mr. McKay.He said the crisis started with the US housing market and the sub-prime exposure in the last year-and-a-half and spilled over into the credit markets as large financial institutions began to feel the pain. Mr. McKay pointed to the Federal Reserve's bailout and JP Morgan's subsequent takeover of investment bank Bear Stearns, the nationalisation of mortgage giants Freddie Mae and Fannie Mac by the US government and more recently the bankruptcy of Lehman Brothers, The Bank of America's buyout of Merrill Lynch and the Fed's bailout of insurer American International Group as some of the defining events leading up to $700 billion rescue plan for the top USfinancial institutions by Fed Chairman Ben Bernanke and US Treasury Secretary Henry Paulson."I think most people are probably aware it has been a pretty tough year in the investment markets," he said."Problems have really built up in the last one-and-a-half-years to the point of last month a lot of large events have happened."We have had all these factors which have led to a negative market this year and really even in Bermuda whoever has invested in local or global markets has been feeling a little bit of discomfort."Ms Bell said her message to investors was not to panic and understand that investments can go up or down on a regular basis but can offer a better return further down the line."It is important to make sure that you review your investment strategy very carefully," she said."Once you have decided on a strategy you should stick with it for the long-term, but if a big event occurs in your life you might want to review that."She said one of the basic investment techniques used in pensions was dollar cost averaging, which allows investors to buy more units when their prices are low and when the price rises they then have a greater number of units at a higher price."Bear in mind that the decline in value of your account if you see negative figures is only a paper loss," she said.Ms Bell acknowledged that it may be more of a concern for those approaching retirement age, but the same rules applied to them, to review their situation and decide whether to hold onto what they have got, become more conservative in their strategy or expose themselves to more risk.She urged investors not to liquidate their plan, but to rather consider other sources of revenue such as Government pensions and rental income, and above all, speak to their pension administrator."Investing is quite a new concept to many Bermudians," she said. "After all, it only became mandatory in 2000 for all employers to have pension plans."We do get calls from our pension plan members and our advice to them is not to panic."We suggest that if they feel that their fund may not be appropriate for them because the paper losses are just too high, then they could reassess their risk tolerance and make a change to their account."She said it was important for investors to educate themselves about pensions and what is available, talk to their family and consult financial planning and investment books, and newspapers as well as financial and investment advisors on the issue.Mr. McKay will be hosting a market and performance update for Argus pension clients at the Bermuda Underwater Exploration Institute on Tuesday September 30.To book your place or for more information contact 298-0888.