The percentage of U.K. pension funds searching for investment consultants is expected to fall to 4.3% for 2013 from 5.7% in 2012, according to research firm IC Select.
Roger Brown, director at IC Select, said the firm found that 2.15% of pension funds had conducted a search in the first six months of 2013, for an annualized figure of 4.3%.
The firm, which monitors investment consultants and offers other services on behalf of pension funds, looked at aggregate changes across a range of investment consulting firms.
Current clients searching for these services ranged from 2.2% to 6.6% among consultants.
Consultants' success at keeping clients that put the services out for bid varied from 14% to more than 60%, which the research firm said might reflect “significantly different client satisfaction levels between firms.”
Mr. Brown said: “I think with more pension schemes implementing derisking strategies, there would be less movement between consultants. To change consultant and that strategy is probably not in the interest of the pension scheme.”
He added that the costs of searching for a consultant should be taken into account. “It is much better to have regular monitoring and assessment and to keep managing the consultant,” Mr. Brown said, to work through any dissatisfaction with the consultant and to conduct a search for a new consultant as a “last resort.”