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It is self-evident that pension funds should avoid acting on or even creating conflicts of interest.

That said, how do you decide a tender? Competition wonks would say that in principle, the cheapest offer wins. However, a fiduciary tender cannot simply be decided on cost. Fees are only a fraction of net return. A tender cannot be decided on return either, because that would invite undue risk taking. Tenders can also not be decided on return within a specified risk framework, because those are promises that may or may not be fulfilled. Trust is yet another decisive element.

In short, trustees must decide on a tender by a complicated non-standard equation that includes risk, return, cost and confidence. Many a trustee will feel unable to do so and use ... their consultant. And so we have made full circle. You gain nothing but needless fees by insisting on tenders. What is really needed is a second, independent consultant who does not offer fiduciary services. How do you explain that to a competition wonk?