CWS Pension Fund, Manchester, England, today announced it is considering legal action against Merrill Lynch Investment Managers because of poor performance. The £2.1 billion ($3.1 billion) plan also said it will terminate Merrill Lynchs £500 million equities portfolio due to personnel moves at the firm as well as performance. CWS hired the London law firm Richards Butler to investigate possible legal action.
Officials at Merrill Lynch did not return calls seeking comment by press time.
Last year, Merrill Lynch agreed to pay £75 million in a settlement with the Unilever Superannuation Fund. Unilever filed a negiglence suit in 1999 against Mercury Asset Management (now MLIM); Merrill Lynch did not admit liability as part of the settlement.
The £500 million equities portfolio was given to existing manager Legal & General to run in a passive equities mandate. Further information was not available by press time.