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(From Financial News (Daily))
Companies are in danger of overcentralising the management of their pension funds and should adopt a more flexible approach, according to Watson Wyatt Worldwide, the global investment consultancy.In a recent survey the consultancy found an increasing trend among multinationals to centralise management and decision-making processes in order to benefit from economies of scale and cost saving.
Watson Wyatt found that US multinationals are five times more likely to use a common external adviser across their pension plans than non-North American firms. Multinationals such as Unilever and BP have preferred manager structures globally or in specific regions, while IBM and Akzo Nobel both have focused on making the most of their vast presence in most European countries.
Chris Ford, head of multinational investment consulting at Watson Wyatt, said there were ...