Schroders, the UK asset manager, is redoubling its effort to sell hedge fund products to its institutional clients through a reorganisation that puts them at the heart of its marketing function. The division is relatively small, but Schroders is convinced it will grow now that institutions make hedge funds increasingly central to their mainstream portfolios.

This has been a difficult year for hedge fund performance. But consultants are increasingly inclined to advise pension scheme clients on ways to use hedge funds. Andrew Kirton, investment chief at consultant Mercer, said he expects a steady rise in pension scheme allocations over time.