BNY wins e73.9bn Hermes outsource
Around 30 of Hermes Pensions Management’s 300 staff are to transfer to the Bank of New York in an outsourcing deal involving more than £50bn (€73.9bn) in assets.
The US bank says it has been selected by Hermes, which manages the assets of, and is owned by, the BT Pension Scheme, to provide investment operations outsourcing services in the UK.
There would be no redundancies, although around 10% of employees would move to the bank, a spokesman says. The move was “forward looking” because it means Hermes would avoiding having to upgrade its systems over the next five years.
“The proposal will involve the complete migration of the Hermes Pensions Management investment operations functions to the Bank’s BNY SmartSource strategic IT platform and centralised outsourcing business model,” the bank says.
The bank will run trade support, asset servicing, data management and position keeping. Hermes was advised by Ernst & Young on the transaction.
“The Bank of New York consistently demonstrated that it understands the complexity of investment administration and the servicing requirements of our major pension fund clients,” says Hermes’ chief operating officer Gerard Quirke.