Henderson in legal row

A GROUP of pension funds is suing asset manager Henderson over the handling of its investment in construction firm John Laing in 2006.

The full list is not yet known but the pension funds of the BBC, Tesco, BAE Systems and Bupa, as well as Kent and South Tyneside councils, were among those known to have considered legal action.

The size of the claim could be as high as £450m, but a figure nearer to £170m is more likely, sources said.

Henderson has been accused of misrepresentation and breach of mandate over the disappointing Henderson PFI Secondary Fund II. Most of the capital raised for the fund was used to buy John Laing, whose pension fund deficit has steadily increased.

Yesterday Henderson said: “We are confident we have no legal liability to investors in this fund. We will vigorously defend these proceedings.”

The asset manager has previously said it believes the PFI Fund II will recover over its remaining five years.