The history of in-house asset management in UK pension schemes is by and large not a happy one. There are few examples of where it has successfully taken place and there is the well known example of the BT scheme, which created its own in-house manager, Hermes. Over time, the pension trustees increasingly outsourced the management to external asset managers precisely because the in-house operation was not good enough. The argument that in-house asset management is a way forward for pension schemes should be strongly discouraged.