Merchant Navy test drives new model with Towers Watson at the helm
Tue Jul 3, 2012
In a novel twist where one consultant oversees another consultant, risk falls and returns rise as Navy pension fund sails into hedge funds
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...
ISSN: 2151-1845 / CDC10004H
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