Susan M. Mangiero's  Instablog

 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.

He wrote: "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."

In speaking to industry experts about the consulting industry in general, several trends appear to be taking hold. They include:

• 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.