GREENWICH, Conn. — Sixty percent of U.S. plan sponsors hired a new money manager last year, a sharp increase from 56% in each year from 2000 to 2002 and 51% in 1999, according to new research from Greenwich Associates, Greenwich.
"U.S. pension funds are opening their doors to new managers and looking for fresh insights and ideas to a greater extent than we've seen in 30 years of covering this market," said Greenwich consultant Rodger Smith in the report. "They're not abandoning their traditional asset allocations and classes, but they are shopping smarter."
At the same time, manager terminations remained flat between 2002 and 2003, at 45%, resulting in a substantial net increase in managers employed, according to the February "U.S. Investment Management"report. Hiring expectations have also risen, with 49% of pension funds expecting to hire a new manager in 2004, up from 48% for 2003 and 42% each in 2002 and 2001.
"U.S. plan sponsors are hiring an unusually large number of new and additional managers," Mr. Smith said in the report, "and these managers are bringing in original ideas and incremental diversification."