In a time when your industry is under more scrutiny than ever, how do you defend investment consultants to your critics?
Some of the skepticism is probably warranted. I believe the face of the consulting industry has changed significantly over the last 10 years. It’s no longer about putting managers in boxes or finding the best large-cap managers—this is not the best way to add value for clients. The role of the consultant is more properly played when it’s that of a strategic and global advisor that helps clients with issues that may not be entirely investment-related, but are long-term considerations for clients to meet their goals and be sustainable. Consultants should be able to have the difficult conversations about realistic returns, and also address any organizational issues.