The UK’s largest pension fund is to shift £14bn of equity investments away from traditional stock-picking, in a radical overhaul of its approach that will put 13 people on its in-house investment team at risk.

The move, which is the first big change piloted by new chief investment officer Simon Pilcher, will affect the £75bn Universities Superannuation Scheme’s investments in developed-world stock markets, such as the UK, US and western Europe.