EUROPE – Investment manager search activity in Europe almost doubled – and the use of consultants continued to grow – last year, according to Mercer.

Mercer Investment Consulting said it conducted 152 searches for Europe (ex-UK) clients last year – up from just 78 in 2004.

In the region, assets placed rose slightly from $22.7bn in 2004 to $25.2bn in 2005. Multi-asset and global equity saw the most search activity in the region.

“The number of searches in continental Europe increased dramatically in 2005 as both our business and the use of consultants continue to grow across the region," said Mercer IC European research chief Andy Barber.

According to a statement, Ireland saw the most search activity within the region, driven by changes in asset allocation and by the trend away from single-manager balanced structures towards structures seeking global equity exposure

“We expect specialist search activity to increase across Europe this year,” added Barber.

Meanwhile, close to 230 searches were conducted in the UK compared to 241 in 2004 – with total assets placed amounting to $29.9bn. Global equity represented 42 of the searches and nearly $6.2bn in placed assets.

According to Barber, "While global equity continues to see the most search activity within the UK, the pick-up in private equity searches is striking. This suggests our UK clients are continuing to take a long-term view when deciding on strategic asset allocation."

Overall, the value of assets placed through Mercer manager search activity dropped by $8.2bn in 2005.

Mercer advised on 748 manager searches globally last year, accounting for $76bn in assets placed. In 2004, it advised on 764 searches accounting for $84.2bn.

More than one in six searches globally now relates to alternative mandates.

US search activity decreased overall in 2005, mainly due to reduced defined contribution (DC) search activity, which fell from 441 searches in 2004 to 164 in 2005.

Meanwhile, search activity in Asia remained essentially unchanged from the previous year, with 44 searches in 2005. Assets placed as a result of these searches totalled US$3.4 billion – “a considerable decline” from the US$6 billion placed in 43 searches in 2004.

"Search activity in Asia can be subject to considerable variability from one year to the next given the diversity of clients and volume of assets being placed from year to year," said Mercer IC’s Asia research head Marianne Feeley.

She added that in Australia, investors seeking diversification and higher returns were the primary drivers behind most search activity in 2005.

However, overall, 2005 was below average in terms of search activity. “In general, clients are satisfied with their current investment manager mix, and strong performance of equity and fixed income markets have given them little reason to reconsider that structure," said Feeley.