http://www.watsonwyatt.com Latest Watson Wyatt Investment Consulting Articles and News en-us Copyright 2010 Watson Wyatt Worldwide http://backend.userland.com/rss091 3/11/2010 1:03:33 PM 20 Watson Wyatt’s investment outlook for 2010 [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22884UK - December 15, 2009 - Watson Wyatt has recruited Paul Herbert from Hewitt Associates to its Defined Contribution (DC) team, which brings the number of new associates hired into its Investment business since August to 27. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22859The vast majority of Exchange Trade Funds (ETFs) are an unattractive long-term investment option for most institutional investors according to Watson Wyatt, a leading global consultant. The firm says that while the development of the sector has driven a great deal of product innovation, institutional investors should consider ETFs in conjunction with alternative options because ETFs generally have higher fees than many institutional index products; may have tax implications that require specialist advice; and often contain counterparty risks which investors may not be compensated for. The firm also suggests that there is a great deal of development within indexation, which is likely to offer passive investors a broader range of options and better risk-adjusted returns than those currently available. [ASIA-PACIFIC]http://www.watsonwyatt.com/search/parser.asp?ID=22837The vast majority of Exchange Trade Funds (ETFs) are an unattractive long-term investment option for most institutional investors according to Watson Wyatt, a leading global consultant. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22812Institutional investors should be preparing now for the return of inflation according to a Watson Wyatt report, but it warns that accurately timing protection strategies will be difficult. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22762Since October 19, 2009, pension fund administrators (AFPs) have been allowed to invest a larger share of their assets in foreign instruments, following a resolution by the Peruvian Central Bank. [PERU]http://www.watsonwyatt.com/search/parser.asp?ID=22817 [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22728Watson Wyatt has identified and ranked fifteen extreme risks that would have a high impact on global economic growth and asset returns if they occurred. In a new paper, entitled Extreme Risks, the firm ranks depression, hyperinflation and excessive leverage as its top three based on their impact and the risk together with the degree of uncertainty in assessing the risk. The bottom three are the end of fiat money, a major global conflict and a killer pandemic. [ASIA-PACIFIC]http://www.watsonwyatt.com/search/parser.asp?ID=22734On November 10, 2009, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) delivered its final advice to the European Commission on the majority of areas covered by the first and second round of consultation papers for Solvency II Level 2 Implementing Measures. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22806The long-term outlook for emerging economies will impact positively on emerging market investments according to Watson Wyatt, but it warns that choice of asset class and implementation route are not obvious. In a new research paper entitled Emerging Wealth [Use the link to the attached pdf], the firm suggests that emerging market equities, debt and currencies are where exposure to the macroeconomic dynamics of emerging markets will be most readily obtained. [ASIA-PACIFIC]http://www.watsonwyatt.com/search/parser.asp?ID=22654The long-term outlook for emerging economies will impact positively on emerging market investments according to Watson Wyatt, but it warns that choice of asset class and implementation route are not obvious. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22659Assets managed by the world’s largest 500 fund managers fell by over 23 percent in 2008 to USD 53.4 trillion, down from USD 69.4 trillion the year before, according to the Pensions & Investments/Watson Wyatt World 500 Ranking. This fall in assets is the first since 2002 and the largest since the research began in 1996. [GLOBAL]http://www.watsonwyatt.com/search/parser.asp?ID=22635Effective September 28, 2009, the thresholds for pension funds’ investment portfolios have been modified by the Brazilian government. This new regulation, which aims to reduce administrative costs and increase portfolio diversification, allows certain funds to be allocated to riskier investments. [BRAZIL]http://www.watsonwyatt.com/search/parser.asp?ID=22641A survey by Watson Wyatt found that the number of companies that use target-date or lifecycle funds as their default investment option has increased sharply in the last few years, from 38 percent in 2006* to 62 percent today. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=22579Total assets of the world’s largest 300 pension funds fell by 13 percent in 2008 to $10.4 trillion, down from $11.9 trillion last year, according to Pensions & Investments and Watson Wyatt research. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=22581The strategic case for investing in infrastructure is being compromised by high fees and reducing its take up by institutional investors according to Watson Wyatt, the leading global consulting firm. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22536Watson Wyatt, a leading global consulting firm, has promoted Damien Loveday to global head of hedge fund research, taking on the role from Craig Baker, who also leads the wider global manager research team. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22478UK – October 14, 2009 - The majority of Defined Contribution (DC) pension plans would benefit from the significant use of passive management because of its cost effectiveness and alignment with the governance capability of most plan fiduciaries, according to Watson Wyatt. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22499Negotiating private equity fees and terms have previously been challenging due to limited capacity among high-quality general partners (GPs) and the restricted ability of limited partners (LPs) to pool their bargaining power according to Watson Wyatt, a leading global consultant. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22486Watson Wyatt has declared that the era of excessive and misaligned fees in private equity is over. Negotiating private equity fees and terms have previously been challenging due to limited capacity among high-quality managers or "general partners" (GPs) and the restricted ability of investors or "limited partners" (LPs) to pool their bargaining power according to Watson Wyatt, a leading global consultant. In a new paper, entitled Private Equity fees and terms, the firm suggests fairer fees and terms for the asset class with the aim of encouraging debate in the LP community, with the ultimate purpose of eliminating some of the more egregious terms seen in private equity. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22524