Royal Bank of Canada (RBC) subsidiaries in Guernsey, Channel Islands, have been selected to provide custody and fund administration services for Hermes Pensions Management Limited’s new offshore fund of hedge funds. This agreement represents approximately £500 million in assets under administration.
“Hermes is glad to be working with the highly skilled and professional team at RBC and we’re very confident in their abilities,” says Tony Allen, director, Securities Operations of Hermes Pensions Management Limited. “Partnering with a provider who has strong technological and operational capabilities as well as an in-depth and comprehensive knowledge of the fund of hedge fund industry were key factors in our decision.”
Through this new agreement the RBC subsidiaries will provide custody, corporate trustee, fund accounting, recordkeeping and banking services for Hermes’ new offshore fund of hedge funds, launched on 1 November 2004.
“This is an exciting new venture for Hermes and we are proud to play an integral role,” says Ron Nutter, global head Corporate and Institutional, Royal Bank of Canada Global Private Banking. “This agreement exemplifies the importance of our industry leadership and our commitment to providing clients with innovative business solutions that help them be more strategic and competitive in the markets they serve.”
Hermes is a leading pension fund investment manager in the UK, whose largest client is the BT Pension Scheme (BTPS), its owner. Its clients include the pension’s funds of Royal Mail, RailPen, Sainsburys, Unilever, Nippon Life (Japan), CalPERS (USA), PGGM (Netherlands), ATP (Denmark) and 38 UK Local Authorities. Hermes currently invests approximately £47 billion (as at 30 September 2004) on behalf of over 200 clients including pension funds, insurance companies, government entities and financial institutions, as well as charities and endowments.