Asset managers are increasing their focus on defined benefit pension schemes over the retail market, according to new research.

Cerulli Associates’ survey of 100 asset managers found DB funds, insurance companies, and mass affluent investors are the top three priorities for managers at present.

Angelo Gousios, a senior analyst with Cerulli in London, said managers are generally trying to diversify their income sources through focusing on different client segments or new markets.

“It is not good to have all one's eggs in one basket, so diversifying income sources in an environment where margins are under pressure from market and regulatory forces can help in the pursuit of healthy revenues,” Gousios said.

Cerulli said the survey, which quizzed managers of some €3trn in assets, “confounds the hype” around defined contribution pensions. DC has since 2009 slipped one place to fourth on the list of managers’ priorities.

However, the research firm believed some retail segments such as DC have longer-term potential, and will become larger as funds grow and flows strengthen.

The survey found more than 60 per cent of managers were widening their focus. Cerulli predicted the average fund seller in Europe will distribute in 22 markets in 2015, compared with 18 in 2012.

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