Hermes Investment Management

Last updated

Hermes Investment Management
Type Private company
Industry Investment management
Founded1983
Headquarters London, England
Key people
David Stewart (Chairman)
Saker Nusseibeh (CEO)
Website www.hermes-investment.com

Hermes Investment Management is an investment management firm providing public and private markets investment strategies and engagement services to institutional and wholesale investors, operating worldwide.

Contents

Established in 1983 as the principal manager the BT Pension Scheme, Hermes now employs 200 investment and stewardship professionals, with 448 total staff, in its London head office, Singapore and New York.

At 31 December 2018, it managed £33.5 billion of assets and engaged on £389.4 billion in assets. [1] [2] [3] [4]

Hermes is majority owned by Federated Investors, Inc (Federated), a leading US investment manager with $459.9 billion assets under management. BTPS retains a minority stake, alongside members of Hermes’ management.

Hermes’ public markets investment capabilities include: equities, credit and multi asset. Its private markets capabilities include: real estate, infrastructure, private debt and private equity. The company's engagement services aim to mitigate strategic, environmental, social and governance risks of companies invested in. The company manages fifteen offshore funds. [5]

The Hermes Investment Office monitors the activities of each investment team to verify that they are adhering to mandates set by clients, and validates the performance of each strategy. Based in London, Hermes Investment Management also has an office in Singapore. [6]

History

Hermes began operating in 1983 as PosTel Investment Management Limited (PosTel) in 1983, [7] the investment management team of the Post Office Staff Superannuation Fund. The fund subsequently split into two pension schemes, the Post Office and British Telecommunications Staff Superannuation schemes. In 1995, the trustees of the BT Pension Scheme purchased the Post Office scheme's holding in PosTel. Following this purchase, the business changed its name to Hermes. [8]

Hermes continues to be the principal investment manager for the BT Pension Scheme (BTPS) and since 2012 has sought to create a third-party client base. In 2014, Hermes re-branded as Hermes Investment Management, to reflect its being a fast growing global investment management firm. [9] [10]

In January 2016, Hermes Investment Management announced that David Stewart would replace Paul Spencer as chairman. Stewart, who was previously on the board as a non-executive director took up the chairmanship position on 1 April. [11] In June 2016 Hermes spoke out against short-termism in the industry, pushing fund managers to focus on long term performance. [12]

At 31 March 2018, Hermes Investments third-party clients included institutional and wholesale investors in the UK, Europe, United States, north Asia and Australia. At 31 March 2018, third-party clients accounted for 64% of the company's revenues.

On 2 July 2018, Federated Investors acquired majority ownership of Hermes Fund Managers.

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References

  1. ↑ "Hermes Investment Management- About Us". UK Wholesale. Retrieved 21 April 2017.
  2. ↑ "Hermes Stewardship". UK Wholesale. Retrieved 21 April 2017.
  3. ↑ "CENTRE:MK'S PREMIUM LINE UP EXPANDS". AVER. 2 March 2017. Retrieved 21 April 2017.
  4. ↑ Reuters Editorial. "Fund manager Hermes wants better governance for private infrastructure". Reuters UK. Retrieved 21 April 2017.{{cite news}}: |author= has generic name (help)
  5. ↑ "Funds by Hermes Investment Management | Money Observer". www.moneyobserver.com. Retrieved 21 April 2017.
  6. ↑ "Hermes Fund Managers Limited: Private Company Information - Bloomberg". www.bloomberg.com. Retrieved 21 April 2017.
  7. ↑ "HERMES FUND MANAGERS LIMITED - Overview (free company information from Companies House)". beta.companieshouse.gov.uk. Retrieved 21 April 2017.
  8. ↑ "Hermes Stewardship". UK Wholesale. Retrieved 21 April 2017.
  9. ↑ "Hermes rebrands as Hermes Investment Management". investmentweek.co.uk. Retrieved 21 April 2017.
  10. ↑ Jeynes, Matthew (1 September 2014). "Hermes rebrands as Hermes Investment Management" . Retrieved 21 April 2017.
  11. ↑ Ratcliffe, Madeline (5 January 2016). "Changing of the guard at Hermes Investment" . Retrieved 21 April 2017.
  12. ↑ Farrell, Sean (12 June 2016). "Hermes fund manager drafts plan to end City short-term investments". The Guardian. ISSN   0261-3077 . Retrieved 21 April 2017.
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