New Clause 13 - Scale of pension schemes

Part of Pension Schemes Bill – in a Public Bill Committee at 3:00 pm on 4th November 2014.

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Photo of Richard Graham Richard Graham Conservative, Gloucester 3:00 pm, 4th November 2014

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.