It’s not difficult for Hermes to operate this way. It has to. Its owner, which supplies £18 billion of its £25 billion in funds under management, demands this feedback and long-term view. With a stable pension fund owner and little pressure to raise assets or deliver big returns quarterin, quarter-out, Hermes is able to replicate this relationship with other investors. Nusseibeh also believes the role of the funds management CIO should change from a manager of investment staff or asset allocator to an internal consultant to clients.
Alternatives
The chief investment officer of the $150 billion industry super fund says that Hostplus’ portfolio will weather the ongoing downturn in software companies and that moves by a number of large private credit managers to gate their funds are a result of the asset class being offered to retail investors who should not have assumed the funds would be liquid enough to get money out when everybody else is trying to do the same.
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