By Claire Makin
Andrew Waring became chief executive of the $5.5 billion
Merchant Navy Officers' Pension Fund (MNOPF) in March 2008 and
quickly realised that its governance structure needed a fairly
urgent overhaul. "It was not clear who was taking
responsibility for investment decisions," Waring says.
This was not ideal at a time when the sound of crashing
markets could be heard around the world. So in October 2008 the
UK-based MNOPF delegated the chief investment officer function
to its longstanding consultant, Towers Watson.
Two years later, Towers Watson was re-appointed after a
full-scale search for a fiduciary manager led by KPMG, which
made headlines and saw Towers Watson beat BlackRock at the
In an unexpected twist, the MNOPF then hired a second
investment adviser, Hymans Robertson, in June 2011 to act as a
check on the power now delegated to Towers. "There is...