Alternatives.(alternative investments are useful)(Equity Office Properties Trust acquires Blackstone Group L.P.)(hedge funds provide diversification)

Pensions & Investments, February, 2007

Watson Wyatt says baby-sitting crucial WASHINGTON - Alternative investments have the potential to backfire on corporate pension plans that are not actively managing and monitoring their investments, according to consultant Watson Wyatt Worldwide. "The quick growth of alternative investments, such as hedge funds, private equity and infrastructure, might lead some to conclude that everyone can benefit from such tools, but that is not the case,'' Carl Hess, director of Watson Wyatt's investment consulting in North America, said in a news release.

"Alternative investments will pay off consistently only for well-governed organizations. To delve into these investments before putting the needed governance in place is putting the cart before the horse.'' Corporate...

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