The Future Fund Management Agency, Melbourne, Australia, hired Watson Wyatt as its investment consultant. Among the firm's initial tasks will be to develop a strategic asset allocation and a strategy for entry into financial markets, said Paul Costello, general manager of the A$18 billion ($10.7 billion) fund, which covers the Australian government's unfunded public service pension liabilities. Watson Wyatt will also assist with manager selections. Mr. Costello said the consultant's role will "evolve" as the Future Fund builds internal capacity, and that the fund could add specialist consultants for specific asset classes in the future.
Watson Wyatt will immediately hire two extra consultants to deal with the "chunk of capacity" taken up by the assignment, said David Neal, executive director.