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Investment consultancy Hewitt Associates has established a presence in Edinburgh and plans to kick-start an expansion this year.

David Crum and Zuhair Mohammed, two big players appointed last year, have ventured north of the border to set up a Scottish office.

Hewitt’s Edinburgh office aims to boost its reputation among Scottish pension funds and asset managers.

The Scottish capital is home to some of the UK’s largest fund managers, such as the £141bn Standard Life Investments (SLI), the £97.3bn Scottish Widows Investment Partnerships (SWIP), and Baillie Gifford, which has £54bn in assets under management.

Andrew Tunningley, head of Hewitt’s UK investment consulting team, says that it will be looking to expand in the coming months, though the team’s clients would range across the UK.

He says: “"We are aware of the considerable pool of local investment talent. We will be looking to build on the team over the next few months."

A senior investment consultant in London can earn £80-100k, but this slips slightly north of the border. However, recruiters say that a difficulty in finding suitable candidates, combined with a surge in business over the last year, has seen salary levels across the UK come in line with the City.

Mike Sims, director of investment consultancy Morse, which counts SLI, SWIP and Aegon among its clients, thinks the firm might find it difficult to source consultants locally.

“There are opportunities in both investment management and third-party administration for people with the necessary skill sets, so there’s a lot of competition. We are all finding it hard to find good quality people, particularly at this time.”

He adds that the Big Four accountancy firms also pose a competitive threat, both for consultancy business and talent.

Crum joins from the Strathclyde Pension Scheme and will focus on client services, while Mohammed comes from rival consultancy P-Solve and will concentrate on maintaining client relationships.

Hewitt also has an office in Glasgow, which deals with administration outsourcing for pension schemes.