True advice

Hermes Fund Managers is owned by BT Pension Scheme and that fund remains its largest client, however the multi-boutique asset manager also, increasingly, manages money for third-party clients.

“With our third-party clients we’re prepared to be completely transparent; hopefully they’ll ask that of other funds managers,” he says. “We are a great believer in transparency of pay and we publish how much we pay everyone” *

“If you’re hiding something, like how much you’re being paid, you have to ask why,” he says

Nusseibeh sits on the BT Pension Scheme investment committee. He says the Hermes business has been built on three pillars: excellence, responsibility and innovation.

“We have to show the same care and responsibility to our third-party clients that we show to our parent. This means transparency. They have access to our internal spreadsheet, risk analysis and attribution, and our qualitative assessment of the manager. We review all of our portfolios on a continual basis, have a formal review monthly and investors have access to the minutes of the meeting. It is true advice: telling a client when we don’t agree.”

* According to a document called Pillar 3 Disclosures at the end of December 2011, aggregate annual remuneration of senior management who have a material impact on the risk profile of the firm is £9,381,000 in respect of the 2011 performance year. This is made up of fixed pay and variable pay. The bonus structure includes an equity participation scheme and a bonus deferral scheme.