BT considers more alternatives

BT Financial Group is looking at expanding the alternative options in its ‘Investment Solutions’ multi-manager funds following the appointment of Watson Wyatt as investment consultant to the funds last week.

BT currently includes a Grosvenor fund-of-hedge-funds and an AQR total return fund as part of its multi-manager options. Combined they have a 9 per cent allocation of the funds’ $2.3 billion. Stewart Brentnall, head of BT Investment Solutions, said his team was looking at adding “other types of alternatives”. Watson Wyatt replaces incumbent Intech Investment Consultants. Although BT had signed up Intech to a three year contract on April 1 last year, a clause in the contract enabled both parties to end that arrangement if either sold their business. Watson Wyatt has now been signed up to a three-year contract beginning July 1, 2007. “The asset classes covered [by Watson Wyatt] are a little broader [than those covered by Intech],” Brentnall said. They include alternative asset classes such as private equity which were not covered by Intech. BT is also reviewing its fixed income line-up and will complete a review of fixed income and alternatives by the end of the year. “We’re obviously very pleased to be appointed [to BT], it further cements our position as a leading consultant in the industry,” Graeme Miller, Watson Wyatt principal and senior consultant, said. BT will have a dedicated Watson Wyatt consultant – Dan Simpson – and will have access to Watson Wyatt’s global integrated database. Brentnall said he had known about the impending departure of Andrew Spence before finalising Watson Wyatt’s contract.