Investment consultants work closely with trustees or other fiduciaries to analyse their investment goals and learn how their funds are governed. It's important to understand what level of performance the trustees expect and their sensitivity to risk. The consultants then develop liability plans and profiles that enable them to recommend an acceptable investment policy.

Increasingly, however, investment consultants are required to implement the advice they give, which places them in direct competition with fund managers.

Investment consulting careers usually fall into one of two main categories:

Asset allocation - Asset allocation specialists advise clients on the most suitable investments to them as an individual, whether it be to invest in equities, bonds, private equity funds or alternative asset classes in order to generate the returns they need to pay pensions over the next thirty years or more. Asset allocation jobs are complex roles requiring the use of mathematical models to arrive at the right outcome.

Fund selection - Fund selection specialists spend much of their time analysing individual asset managers, and their products and asking questions about their investment strategy. They produce regular reports on the strengths and weaknesses of the pension funds' portfolio after scrutinising their performance..

Those working in asset allocation positions will come equipped with an actuarial qualification. Actuarial jobs include using statistical modelling which creates forecasts to mitigate against future risks to potential investments. Asset allocation professionals calculate future liabilities and use these projections to advise companies on how to best structure their pension scheme.

Senior investment consultants work in the fund selection division and tend to have the most interaction with clients. Senior consultants create presentations to explain the logic behind the investment strategy they have designed and outline its performance and deal with any issues that arise. A single investment consultant will always have a portfolio of clients.

Most fund selection consultants will be expected to have a Chartered Financial Analyst (CFA) qualification or equivalent.

Investment consultants are supported by a team of investment analysts; a more junior position which involves little client interaction. Their primary role is research - drafting investment policies, constructing statistics for client presentations, analysing investment performance of portfolios and producing reports for clients, on a monthly and/or quarterly basis.

Increasingly, as investment consultants have grown into large international companies, they have also recruited more for support and compliance roles.