GLOBAL - Two major international consulting firms have sought to distance themselves from other investment consultants in the industry by speaking out against the conflicts of interest involved when consultants offer manager-of-manager services.
Writing exclusively in IPN’s sister publication, Global Pensions, Steven Vale, a senior investment consultant at Hewitt Bacon & Woodrow, said: “We don’t just pay lip service to potential conflicts of interest but take them extremely seriously.
“Ensuring we are free to offer pension fund trustees genuinely independent advice guides all we do.”
In reference to the ongoing Global Pensions campaign, which has highlighted the many conflicts involved, he added: “This is a campaign we support.”
In a separate letter, Nick Watts, head of the Eurpoean investment practice at Watson Wyatt said: “We believe that our decision not to offer fund-of-funds helps maintain impartiality.”
“From a business model perspective the risks associated with launching and building a fund-of-funds offering should be carefully considered,” he added.
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