Hermes Pensions Management Limited

Hermes is a leading institutional fund manager which invests funds on behalf of over 240 clients, including pension funds, insurance companies, government entities and financial institutions. Hermes is owned by its largest client, the BT Pension Scheme (BTPS), and has overall responsibility for the investment management of all BTPS plan assets.

Following a thorough review of a number of strategic options available to its index-tracking business, Hermes concluded that it is in the best interests of its clients for Hermes to enter into a partnering arrangement with a leading index fund manager who will make available index tracking services, whilst Hermes continues to provide its world class corporate governance services.

Accordingly, following an extensive competitive process, Hermes announced that all of its passive clients will be offered the opportunity to receive index tracking services from Legal & General Investment Management Limited, whilst Hermes will continue to provide its corporate governance and stewardship services through Hermes Equity Ownership Services Limited ("HEOS").