Pension funds in the UK are relying more on consultants but have little or no idea how to measure the advice they receive, a new survey has found.
“Following the trend of the 2003 survey, pension funds continue to increase their reliance on consultants,” the survey undertaken by broking firm Instinet finds. “There has been an increase in the amount of external advice received by funds and a decrease in the number of trustees that have started to react differently than before Myners to the advice.”
Forty-five per cent of funds with a market value of over $1bn (E1.47bn) polled saw a a 10% increase in advice received from investment consultants on 2003.
But nearly two thirds (62%) of funds have no formal way of measuring the quality of advice they receive, the survey finds.