UK - Watson Wyatt released a four-year track record of its manager research performance in which all 13-model portfolios outperformed their benchmark.
Nick Watts, European head of investment consulting at Watson Wyatt, said: “We are pleased with the figures as they reinforce our assertion that good manager research is capable of adding value. This is particularly important now, given the imperative to reduce pension fund deficits.”
The emerging market equities portfolio was the only portfolio that did not outperform after transition costs and fees returning –0.2%, while the global equities portfolio was the best performing returning 3.9% after transitions costs and manager fees.
Watson Wyatt said that it had run notional portfolios of investment managers for four years in order to monitor the quality of its manager research and selection.
The performance data, which is independently reviewed by Deloitte & Touche, covers 13 asset classes in most major equity and bond markets around the world.
Watts added: “The performance figures are gratifying even though they are over a relatively short period because they are a justification of our strategy to commit substantial resources to providing quality manager research on a global scale.”
Watson Wyatt now has over 130 investment consultants involved in manager research, conducting in excess of 2,000 formal research meetings a year with investment managers globally.
In 2003, $57bn worth of assets were awarded to investment managers by Watson Wyatt’s clients, an increase of 27% over 2002.
Mark Evans has been appointed as a director at Independent Trustee Services (ITS) to lead trustee appointments in London.
The Pension Protection Fund (PPF) is consulting on changes to the actuarial assumptions it uses in valuations in a bid to better reflect the bulk annuity market, with schemes set to move into surplus on aggregate.
Private sector defined benefit (DB) schemes were 96.3% funded on a Pension Protection Fund (PPF) compensation basis at the end of July, according to the lifeboat fund's monthly index.
Conduent has completed the sale of its actuarial and human resource consulting business to private equity investor, H.I.G. Capital.