UK - Four local authority pension funds have invested more than £45m in shareholder engagement funds run by Hermes Pensions Management and its US partner, Relational Investors.
The £1.3bn Devon County Council Pension Fund, the £1.5bn Essex County Council Pension Fund and the £1.3bn Nottinghamshire County Council have all invested in funds run by Hermes and Relational Investors.
Nottinghamshire is using new member contributions to fund a £10m mandate with Relational Investors, while Essex has given Hermes £10m to run in its UK small cap equity fund and £15m to Relational Investors’ US shareholder engagement funds.
Devon has hired State Street Global Advisors to run a £250m Europe/North American/Japanese equities index brief and UBS to manage a £240m UK index equity mandate, both of which were previously run in-house.
In addition, the £4bn West Yorkshire Pension Fund has invested in the funds run by Hermes and Relational Investors.
The mandate wins mean that Hermes has a total of 11 local authority scheme clients, which in turn have a total of 21 investments – worth a combined £270m – across the range of shareholder engagement funds.
Paul Budgen is set to join financial technology and auto-enrolment (AE) firm Smart Pension as director of business development.
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