Hermes Extends Fund Of Funds Clawback To All Funds

Feb 4 2010 | 12:05pm ET

Hermes Fund Managers is extending its performance fee clawback provision to all of its products, after instituting the policy at its fund of hedge funds unit last year.

The move by Hermes, which is owned by British Telecom’s pension fund, comes as the firm seeks to attract some £15 billion from third parties over the next five years, Reuters reports. Hermes BPK Partners, the fund of funds arm, last year announced that it would collect its performance fees for a given year over a three-year period, with the firm forfeiting any installment due during a year when a fund underperforms.

That structure will now cover all of Hermes’ funds, which include real-estate and private equity offerings.

“We are not going to receive the performance fee in one lump sum. We receive a third only,” Saker Nusseibeh, chief investment officer, told Reuters. “Only if we meet or beat benchmark the following year, do we receive the next third and again for the following year.”


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note