Hermes Focus Asset Management (HFAM) in the UK has forged an alliance with US-based Relational Investors to launch a $1bn fund to invest in underperforming American companies.
The new fund will be opened in the US by Relational. A further Hermes Focus Fund to invest in continental European equities will begin operations later this year.
The two companies will adopt a similar approach to investment and active shareholder programmes, tailored to the cultural and legal framework of the countries in which they operate.
The BT pension scheme has already committed $150m to the new Relational fund.
This strategic alliance allows our Focus Fund clients to invest in a Hermes-style active shareholder fund in America, said HFAM managing director, David Pitt-Watson.
We can now offer clients this style of investing across 80% of world equity markets.
Relational principal Ralph Whitworth said: “We are now able to articulate and execute shareholder programmes on behalf of institutional shareholders on both sides of the Atlantic.
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