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Expect more legal action against failing managers

Pension schemes have so far tended to punish underperformance behind closed doors – but this could change

Despite poor performance, very few equity managers have had to face clients in court
Despite poor performance, very few equity managers have had to face clients in court Photo: Getty Images

When the Unilever pension fund sued Merrill Lynch Asset Management for negligence in 2001, the groundbreaking case was seen as the tip of the iceberg, with many more schemes expected to take similar action.

The parties settled out of court with MLIM paying Unilever £70 million while refusing to accept liability. Then it all went quiet.

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