Hermes, manager of the UK’s largest pension scheme, has called a halt to restructuring plans following the dire performance of its biggest activist fund and the departure of two key fund managers.

The move is a blow to Rupert Clarke, chief executive, who had hoped to turn the group into a clutch of autonomous investment boutiques within the next year or so. The company, which manages the assets of the BT Pension Scheme, is owned by the scheme.

After taking the job a year ago, Mr Clarke laid out plans to speed up expansion by splitting the group into two units: one would manage the BTPS assets; the other would manage third-party assets through a series of investment boutiques.

Financial Times