Hermes Infrastructure1 is an infrastructure specialist operating a well-established UK-focused shared investment platform. Hermes Infrastructure was formed in 2010 to consolidate and manage the BT Pension Scheme direct infrastructure investment programme which had been investing in the infrastructure asset class since 1996. Since 2010, we have developed a programme to facilitate infrastructure investment by other third-party institutional investors to invest alongside the BT Pension Scheme, one of the UK's largest pension schemes, offering our expertise, ability to outperform and responsible approach, to other investors.
With £4.4bn of AuM, we are one of the UK’s largest direct investors.2 Our investment portfolio currently comprises 15 investments spanning renewable energy, regulated utilities, ports and transport infrastructure.
Our objective is to deliver superior risk-adjusted returns, whilst at the same time offering investors significant flexibility to create portfolios tailored to meet specific performance targets.
Infrastructure is an attractive asset class for institutional investors seeking long-term, inflation-linked stable cash flows. It is a very good fit, in particular, for pension funds with long-term liabilities. However, it is not a homogenous asset class, and has a correspondingly wide range of risk/return scenarios for investors to consider.
We offer clients the opportunity to choose between two separate investment strategies, Core and Value Added, each with its own competitive risk-related fee structure. Our aim is to provide investors with the flexibility to allocate funds in line with their own risk/reward objectives and to build a bespoke infrastructure portfolio via a single investment decision.
As well as managing the direct infrastructure programme on behalf of the BT Pension Scheme, we manage pooled infrastructure funds and co-investment vehicles on behalf of other UK, European, Asian, Middle Eastern and Australian public and private institutional investors including Local Government Pension Schemes, insurance companies, charities, corporate pension schemes and public trusts.
Hermes GPE Infrastructure Strategy (‘HIF I’) was established in 2011 and has £1.2 billion commitments from UK and European pension schemes. HIF I targets Core and Value Added opportunities, predominantly in the UK and Europe.