Investment banks are chasing a bigger role in pension fund management. The >hiring of Credit Suisse First Boston as adviser to the pension fund trustees of Marks & Spencer showed that investment banks are no longer treated with distrust by the industry.

Matthew Demwell, European partner at Mercer Human Resource Consulting, expects the trend to continue. Investment banks recognise the importance of getting close to pension fund trustees, given the central role they play in takeovers, as shown in the M&S bid by Philip Green and the collapse of Permira's bid for WH Smith, the UK retailer.