Pension Risk Matters : Pension Risk News & Analysis : Investment Governance, Inc. : Pension Risk & Investment

I have the great pleasure of being one of two keynote speakers as part of Audit World 2009. My speech, entitled "Navigating the Auditor Hot Zone: Helping Investors Through Volatile Financial Markets," will include case studies from the trenches with respect to prudent process, hard-to-value investing, modeling and much more.

Always important, auditors are increasingly finding themselve in a position of providing pro-active guidance to their clients about complex rules and markets alike. It's no surprise then that institutional investors tell us that what, when and how auditors opine is of critical importance. Lack of uniformity in what auditors advise is a stated concern. On the flip side, auditors worry that pensions, endowments and foundations are asking too much of them, forcing an uncomfortable situation that blurs oversight with execution of essential duties.

Please join me for what should be an exciting and topical event. Sponsors of Audit World 2009, the MIS Training Institute, have put together a "case study-driven, information-rich program in four defined tracks: Financial Services, Non-Financial Services, Manufacturing and Best Practices."

Click to download the conference brochure for Audit World 2009 from September 15 through 17, 2009 in Boston, Massachusetts. If you register before August 29, 2009, you are entitled to a 10% discount off the regular conference fee.To take advantage of this special discount, you must contact MIS Training Institute’s Customer Service and reference the following priority code when registering: AW09/PRM. The discount offer cannot be used in conjunction with any other discount offer or on previous registrations. Contact the MIS Training Institute by telephoning 508-879-7999 or sending an email to mis@misti.com.

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 I am delighted to have an opportunity to speak at the upcoming Private Equity Analyst Conference 2009, to be held at the Waldorf Astoria from September 16-17, 2009. With so much focus now on ethics, conflicts of interest and transparency, the panel topic I've been asked to address is near and dear to my heart.

I've reprinted the session description below. Click here to learn more information about the conference in its entirety.

Title: "Avoiding Major Trouble: Why Private Equity Firms Must Spend More Time On Ethics"

Description: Ethics has become one of the key words over the past year, especially given the fallout on Wall Street. And regulations, both in the U.S. and overseas, now place strict curbs on many established business practices in an effort to stem corruption. The consequences for companies, both in fines and damage to reputation, can be significant, which means investors need to pay attention. But as the disclosures earlier this year in New York make clear firms are not doing as good a job as they can adhering to such policies. So what should firms be doing to ensure that they themselves as well as their portfolio companies stay compliant with not only various regulatory codes, but also just doing good business? What is the message that firms can drive home to their partners and their portfolio companies? Our panel provides their thoughts.

Panelists:

• Barry Gonder, General Partner, Grove Street Advisors
• Pascal Levensohn, Founder & Managing Partner, Levensohn Venture Partners
• Susan M. Mangiero, Founder & President, Pension Governance
• Raymond Svider, Co-Chairman & Managing Partner, BC Partners.

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In response to my post about the merger of Towers Perrin and Watson Wyatt ("Two Giants Merge - Que Pasa?" June 29, 2009), I wrote that generalists are finding it tough going in terms of assisting pension decision-makers, in large part because the issues that confront them are becoming more complex. Though my statement was not directed to any particular firm and reflected what I often hear from pension executives, one reader took me to task.

Mr. Alberto Dominguez writes that "The folks who work at Towers Perrin (disclosure: that would include me) and Watson Wyatt are hardly generalists. One argument in favor of the merger is that it will allow an even greater depth of talent and more specialization, enhancing the ability to assist clients with these increasingly specialized decisions." (Check out Alberto's blog on pension issues from an actuary's perspective, "What's An Actuary?". Also note that he has given me permission to reprint his comments but with the caveat that he is not rendering an official statement on behalf of Towers Perrin.)

In speaking to industry experts about the consulting industry in general, several trends appear to be taking hold. Anyone who wants to guest blog about this topic or offer their opinion (for attribution or not) is encouraged to email Pension Governance, Incorporated at PG-Info@pensiongovernance.com. 

This list (which is far from exhaustive) includes:

• Greater tilt towards specialization under one roof if seen by investment executives as being easier than contracting with multiple parties
• A desire to have a consultant wear the hat of fiduciary continues to have appeal if it is affordable, noting that most organizations will logically charge more for greater liability exposure
• Strident calls for transparency with respect to who is doing what, how and on what basis in terms of fees and buy-sell relationships.

Keep in mind that while consultants are being asked to do more, there are tremendous pressures to contain costs on the part of the organizations that write checks. There is no doubt that the investment consulting world is starting to change. As with any period of tumult, opportunities are there for those who know where to look.

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Pension Governance, Incorporated is pleased to announce its sponsorship of what looks to be a collection of best in class legal minds. Developed by the American Conference Institute, "Defending and Managing ERISA Litigation" will address the importance of written procedures and prudence process and much more. Both plaintiffs and defendants can no doubt benefit from listening to the many in-house attorneys and judges who are scheduled to speak. Readers of this blog can enjoy a $700 registration discount by typing ERISA PENSION when prompted for a code if they complete registration by July 17, 2009. Click here to download the full agenda.

As an owner of www.pensionlitigationdata.com, we believe that plan decision-makers can learn a lot by examining case precedent, especially given the evolving nature of ERISA litigation activity. If you missed it when posted in April 2009, enjoy our complimentary debut white paper about pension lawsuit statistics. Click to read "ERISA Litigation Study," dated April 15, 2009.

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