Henderson faces High Court battle with 30 pension schemes

Nearly 30 pension funds, including Tesco, BUPA and the BBC, have filed claims at the High Court seeking damages from Henderson Global Investors over claims it took too much risk with one its funds.

Between 20 and 30 schemes - calling themselves the Henderson Action Group - will seek damages from the asset manager over claims Henderson's Private Finance Initiative fund II took too much risk by acquiring John Laing, a construction firm with a large pension deficit, for £1bn in 2006 .

It is claimed the fund promised to invest in low risk assets with inflation proofing, which the action group says the Laing acquisition contravened.

It said John Laing "clearly did not fit" into the low risk category outlined in the fund's mandate.

When the credit crunch hit, the vehicle lost two-thirds of its value, but the group argues the losses were also down to the deficit in the John Laing pension scheme.

In a statement last night, Henderson said it is confident it has no legal liability to investors in the fund, all of whom, it added, are "sophisticated investors". It said it will "vigorously defend" itsef in the proceedings.

The action follows over a year of negotiations between the parties to resolve the dispute by a negotiated settlement.

Last year, Professional Pensions, IFAonline's sister title, reported that a group of disgruntled pension funds was threatening litigation against Henderson after one of its funds lost more than 60% of its value during the credit crunch (PP Online, 8 September 2010).

The majority of the assets in the Henderson PFI Secondary Fund II - an infrastructure vehicle whose clients include "large UK and continental European pension funds" - were used in the purchase of John Laing.

However, the action group argues the fund lost about two thirds of its value.