Hermes IM has lost an £8.4bn gilt mandate from parent company the BT Pension Scheme (BTPS), which has opted to move this part of the portfolio from active to passive management.
Hermes said today it is to close its global government and inflation-linked offering over the coming months following BTPS' decision. A statement from BTPS, which is also Hermes' owner, said: "We are transitioning our inflation-linked government bond mandate to passive mandates. We have made the decision to move the mandate to passive as this best meets the ongoing needs of the scheme and will be more cost effective going forward." Hermes is the scheme's largest investment manager. BTPS said its performance has been strong and the group will continue to run 30%-40% of the scheme's tot...
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