UK - Mercer's investment consulting team is under review at two UK local authority pension schemes.
The £1bn (€1.15bn) Buckinghamshire County Council pension fund and the £417m Croydon scheme are tendering for investment advisory services, forcing incumbent adviser Mercer to reapply for the position.
Both schemes said the retendering exercises were part of their ‘best value' regulations which oblige local authorities to review existing service providers after set periods of time.
A spokesperson for Buckinghamshire said the decision to review the fund's investment consultant was not a reflection on Mercer's performance.
Mercer has recently guided both councils through major investment strategy overhauls which saw the portfolios shift towards more diversified portfolios.
At the end of 2009, Buckinghamshire completed a restructure which incorporated a more diversified suite of equity managers and a move to alternative assets. Similarly, Croydon has switched from a passive strategy with one manager to a more active approach run by several providers.
Mercer was unable to comment on the local authorities' retendering exercise, but the global consultant will be invited to pitch at both schemes.