UK - Pension fund investment manager Hermes has decided to offer all of its passive clients the opportunity to receive index-tracking services from Legal & General Investment Management Limited.
The new arrangement means Hermes will continue to provide its corporate governance and stewardship services through Hermes Equity Ownership Services Limited (“HEOS”).
Hermes said clients have been contacted with details of the partnering offer and further communication will be held over the following weeks.
It comes after Hermes announced in February 2007 that it was undertaking a review of its passive business, including the pooled fund range through Hermes Assured Ltd (“HAL”).
Hermes said the review was undertaken to ensure that, while performance to date has been excellent, Hermes’ passive clients would continue to receive excellent index tracking and corporate governance services in the longer term within an increasingly competitive environment.
Completely owned by the BT Pension Scheme (BTPS), Hermes is the third largest UK pension fund manager with assets of over £70bn.
In a separate development, Global Pensions reported in May 2007 that the BTPS had more than doubled its allocation to alternative assets from 7% to 15%.
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