Top fund managers are being shunned by UK pension funds in favour of specialist fund managers, according to US consultancy Greenwich Associates.
The survey of 375 UK funds worth £505bn, shows the proportion of the schemes using balanced managers declined from 78 to 70 per cent between 1997-1999.
The proportion using specialist managers surged from 43 to 59 per cent.
The survey shows many have been unhappy with the under-performance of top balanced managers who spread portfolios over a variety of UK and overseas investments.
Specialists like index-tracking managers have enjoyed increased popularity.
The switch from balanced to specialist managers looks set to continue as fewer than one per cent of the pension schemes polled said they will appoint new balanced managers over the next year while 18 per cent say they will hire specialists.