UK/EUROPE - Independent investment manager Hermes has launched a new active European Smaller Companies fund.
The fund is being seeded by the British Telecom Pension Scheme (BTPS) - which owns Hermes - with over £170m, making it one of the largest of its kind in the UK.
Director of European equities Greg Allen, who has been at Hermes since 1995, will head the fund.
Allen said: In the last two years, European small caps have been performing at least as well as European large caps. In fact we expect the small caps to outperform the large caps in the near future and this is why we have decided to raise our exposure to this asset class as a single fund.
Hermes has also made a further two appointments to manage the fund. Both Sylvia Solomon and Tracy Collins join from Baring Asset Management as investment manager and senior investment analyst respectively. Both report to Allen.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers