The challenges facing fund managers in Europe's institutional investment market have been laid bare in two reports, with their biggest clients – UK and Dutch pension funds – moving to low-cost, in-house management and policy moves in the UK likely to encourage individual savers into cash.

In the UK, pension funds put a net €69 billion with fund managers through 2015, according to analysis published on June 13 by Spence Johnson. The consultancy put total UK pension assets at €1.9 trillion.