Barclays has outsourced the management of £2 billion of its pension scheme to Russell Investment Group, the US-based asset manager.

Russell Investments said today that it had been appointed by Barclays to create a £2 billion basket of third-party run funds, designed to deliver above-average — or "alpha" — returns. The initial portfolio includes 15 equity managers.

The Barclay’s scheme has about £16.8 billion managed on behalf of around 220,000 members.

The decision to switch to an outside manager is likely to be seen by some onlookers as a snub to Barclays Global Investors, which to date has managed the lion’s share of the group pension scheme.

However, the move follows similar decisions by other clearing banks. HSBC recently hired external managers to help to look after its £10.4 billion scheme.

A spokesman for Barclays said: "This is not a subject that we will discuss."

Moving to an outside manager is seen as a possible route to tapping the best management talent and can also sidestep internal disputes over whether a company’s pension scheme should expect a discount on fees from a branch of the same business employed to oversee investments.

Watson Wyatt, a consultant that advises Barclays, has lobbied against inside management of pensions for some years, arguing that it can limit returns.

Last week Barclays dismissed as as "scurrilous" speculation that it was considering pulling its €67.5 billion bid for the Dutch bank ABN Amro.

It is competing for ABN against a consortium led by Royal Bank of Scotland.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts