The outcome of the Merrill Lynch Investment Managers/ Unilever negligence claim in the British courts must be a cause of some concern among fund managers about non-standard performance clauses in some of their agreements with pension funds and other investors. Following the £70 million sterling settlement paid to the Unilever pension fund over claimed underperformance - MLIM denied liability in the settlement - other funds are looking back over their performance agreements.

Trustees of the £1 billion sterling J Sainsbury pension fund are considering legal action against MLIM alleging underperformance. As trustees examine their agreements, other fund managers may find themselves at the receiving end of legal claims.