EUROPE - Hermes Pensions Management is the latest in a line of asset managers and pension funds that have joined the Enhanced Analytics Initiative (EAI).
The band of European institutions that includes Dutch pension fund PGGM and UK-based Universities Superannuation Scheme (USS) encourage research houses to analyse intangibles and now command more than e457bn in assets under management.
In joining the EAI, the members commit to allocating a minimum of 5% of their annual broker commissions to those who best analyse the extra-financial and intangible issues that can affect a company’s or sector’s performance.
Nick Mustoe, chief investment officer of Hermes, said: “We believe that analysis of a wide range of extra-financial measures is a key element in identifying the long term value and prospects of the companies we invest in.”
Current members are AGF Asset Management, BNP Paribas Asset Management, Deutscher Investment Trust/ Dresdnerbank Investment Management, Generation Investment Management, London Pension Fund Authority, Mistra, PGGM, RCM, SNS Reaal Group, Trades Union Congress Superannuation Society and USS.
Partner Insight: Members' evolving needs and expectations are driving changes in scheme administration. As the pensions landscape inevitably continues to change, how will your scheme's approach need to develop to keep pace?
The Pensions Regulator (TPR) is "working closely" with government contractor Interserve and the trustees of its defined benefit (DB) pension schemes, it has confirmed.
The industry has welcomed the Department for Work and Pensions' (DWP) consultation on defined benefit (DB) consolidation as a way to address scheme covenant issues.
BMO Global Asset Management has opened a UK fiduciary management business, promising a "truly open architecture" approach to deliver "better client outcomes".