Hermes Investment Management (Hermes) the £30.6 billion manager committed to delivering holistic returns – outcomes for its clients that go far beyond the financial, has today published its Annual Report and Financial Statements highlighting five years of sustained growth in third-party assets under management and assets for which the firm provides stewardship services.
The reports highlights that Hermes has:
- Delivered strong performance against benchmarks and peer groups1:
- Beaten performance benchmarks in 100% of investment strategies over five years2
- Outperformed peer group medians for 100% of strategies over five years3
- Outperformed peer group medians for 93.3% of strategies over three years4
- Beaten performance benchmarks in 74% of investment strategies over three years5
- Engaged with companies valued at more than $15tn on behalf of more than 25m beneficiaries worldwide
- Increased stewardship assets by £107bn to £261bn
- Grown third party assets by more than 300%
Hermes was established in 1983 firstly to manage the assets of its owner, the BT Pension Scheme. In 2011, a growth plan was established to create an internationally recognised third-party asset manager led by CEO Saker Nusseibeh and Global Head of Business Development, Harriet Steel.
Saker Nusseibeh, CEO, Hermes Investment Management, said: “Over the past five years, we have transformed Hermes from an inwardly focused asset manager to a successful third party business with our clients’ outcomes at the very centre. This required a long-term vision and commitment to create a sustainable firm focused on creating long-term holistic returns for all stakeholders.
“We have set ourselves a demanding target to build a vibrant, successful, third party asset management business with a difference. We have created a firm which puts the interests of beneficiaries and savers above our own, and we are striving to help create a better society for them to live and retire in. I believe that our success to date, both in terms of performance and financials, is due to the fact that responsibility is embedded at the heart of the business. Holistic returns make sense for society and are good for business too. I am convinced that our model can continue to work, even in a challenging economic environment, and am hopeful that other asset managers will see this and start to integrate a similar tilt in their offering.”
Harriet Steel, Global Head of Business Development, Hermes Investment Management, said: “Our focus on offering clients access to alternative sources of yield and high quality growth opportunities in public and private markets is proving attractive and last year we saw strong net inflows of £3 billion from investors around the world. In addition, the desire from asset owners for active engagement with the companies in their portfolios has led to the rapid growth of our stewardship business, Hermes EOS, with assets under advice rising by more than £100 billion during the year.”
2016 financial and business highlights
|Assets under management||£28.5bn||£23.0bn|
|Assets under stewardship||£261.3bn||£154.7bn|
|Third party revenue (as a % of total revenue)||59%||52%|
|Statutory profit (pre-tax)||£10.5m||£14.6m|
To download the Hermes Annual Report and Financial Statements in full, click here.
- 1 To the end of December 2016
- 2 Performance is calculated using published benchmarks for strategies. If a strategy does not have an official benchmark a performance target is used. A representative portfolio for each strategy has been used and not all portfolios are included in these calculations. It excludes private equity and infrastructure and strategies which do not have the required track record
- 3 Strategies which do not have a peer group are excluded from this calculation
- 4 Strategies which do not have a peer group are excluded from this calculation
- 5 Performance is calculated using published benchmarks for strategies. If a strategy does not have an official benchmark a performance target is used. A representative portfolio for each strategy has been used and not all portfolios are included in these calculations. It excludes private equity and infrastructure and strategies which do not have the required track record