UK railway pension fund cutting costs by using in-house fund managers

London

BRITAIN'S US$32 billion railway pension scheme has halved the cost of running its biggest asset pool by moving investments in-house.

RPMI RailPen, which oversees the retirement assets of 350,000 British railway workers, pulled billions of pounds from hedge funds and other money managers, reducing the cost of overseeing its main fund to half a percentage point. And there's more cost-cutting to come, says the firm's investment chief.