Hermes to restructure Focus funds

The fund management group – which is owned by the BT Pension Scheme – will merge Hermes Focus Asset Management and Hermes Focus Asset Management Europe into a single structure from January 2009.

The Hermes UK and European Focus Funds will be amalgamated from three separate funds into two – one Pan-European Focus Fund, covering both the UK and Continental Europe; and one single fund dedicated to the UK.

The company said the changes have been made to improve the offering to clients.

Hermes chief executive Rupert Clarke said: "I am delighted to announce the new

partnership, which provides clients with an enhanced offering, while ensuring that

executives have incentives to deliver strong performance.

"The new is consistent with our overall strategy to have a multi-boutique structure working alongside specialist investment management teams."

The new partnership will be owned jointly by Hermes and by its executives, who will have a

significant stake, aligning their incentives with the long-term interests of clients.

Stephan Howaldt and Wouter Rosingh will be managing partners, and together with Paul

Harrison will lead the partnership.

Overall, more than 10 senior executives are expected to become equity partners.

The partnership will be overseen by a board that will include Hermes and BT scheme representatives as well as outside non-executive directors and partnership executives.