Pension fund.
Robert Wallace and Alexander Webster had three passions in common — God, mathematics and alcohol. So when, in the early 1740s, these two Church of Scotland ministers were invited to devise a pension scheme for the widows and dependants of fellow clergymen, they were happy to collaborate on a Godly project that allowed them to exercise their mathematical minds over copious amounts of liquor.
The result was the world’s first pension fund, introduced by an act of Parliament in 1744, which to this day is studied by students at London Business School as a landmark event in global financial history.
For David Pitt-Watson, Executive Fellow of Finance at LBS, the significance of Wallace and Webster’s fund is that it was built on absolute integrity. The overriding aim was to do the right thing by the clergy and their loved ones.
Today’s pensions industry, says Pitt-Watson in this second of three videos, has lost that sense of moral purpose. The retirement savings system, he argues, needs rebuilding — a task for which we should look to Wallace and Webster for inspiration.
Related post:
David Pitt-Watson on asset management fees — Video 1/3
ROBIN POWELL is a freelance journalist and the founding editor of The Evidence-Based Investor. Based in Birmingham, England, he founded Ember Television and Regis Media, and he specialties in helping disruptive financial firms to grow. He also campaigns for a fair, transparent and sustainable investing industry. You can follow him on Twitter at @RobinJPowell.
Robin is a journalist and campaigner for positive change in global investing. He runs Regis Media, a niche provider of content marketing for financial advice firms with an evidence-based investment philosophy. He also works as a consultant to other disruptive firms in the investing sector.
