UK - Fund firm Hermes has stated it is not interested in teaming up with other organisations, after it was revealed joint venture talks with Governance for Owners (GO) have fallen through.

Hermes, the asset manager owned by the UK's largest pension fund, the BT Pension Scheme (BTPS), would not comment directly on the discussions with GO, a partnership founded by former Hermes directors Peter Butler and Steve Brown who previously ran the shareholder engagement funds at Hermes.

The firm however said it talks to various people from time to time, "but there's nothing going to happen in this regard following announcement of new structure of Focus Funds".

A spokesman for Hermes said the company believes it now has the best structure and offering at the Hermes Focus Funds and Equity Ownership Services (EOS), and are not interested in joining up with others.

Late last year, the organisation created a specialist pension fund management team within the group to focus on servicing the strategic needs of BTPS.

The company claimed at the time its move would "allow the Hermes asset management business to accelerate the development of its third party capabilities in parallel with the delivery of existing services for BTPS".

The spokesman clarified today Hermes' pension management involves being manager and investment adviser to BTPS exclusively - and dealing with pension management, asset liability management, strategic asset allocation, risk management, and manager selection where appropriate.

That said, on the asset side the management encompasses the various specialist alpha asset management activities which make up Hermes as a multi-boutique investment management business.

"These asset management services are provided to BTPS and also third parties," said the spokesman.

If you have any comments you would like to add to this or any other story, contact Carolyn Bandel on +44 (0)20 7261 4622 or email carolyn.bandel@ipe.com

Topics