UK – Hermes is proposing a shift in investment strategy at its owner, the £34bn (€49.7bn) BT Pension Scheme, according to the Financial Times.

The FT, citing an interview with Hermes’ new chief executive Mark Anson, said the move could dramatically cut the fund’s exposure to UK equities in favour of foreign equities and alternatives.

The report quoted Anson as saying he had proposed a new asset allocation for the fund, the largest in the UK.

The switch would be part of a programme to help reduce the risk that BT’s pension scheme could not meet its promises, the report added.

In January Hermes announced a £1bn commodities investment on behalf of the BTPS.

The FT said that telecoms giant BT delayed publishing a new valuation of the pension deficit. This was after a dispute over its claims that a large part of its pension liabilities were government-backed.

Anson told the paper that the scheme trustees and Hermes have formed a joint working party to examine the issues surrounding the pension fund.

There were no further details about the proposed change in allocation, but the FT said Anson known as supporter of alternative assets.


Last month, Hermes wrote to German carmaker Volkswagen seeking an investigation over its corporate governance practices.