"Hermes Fund Management" Analysis

Topics: Pension, Pension fund, Total S.A. Pages: 3 (1107 words) Published: March 13, 2013
The case study ‘Hermes Fund Management, Total and Premier Oil: the responsibility and accountability of business’ documents that in 2008, Hermes Equity Ownership Service (EOS) considers whether they should support Total, one of its clients, a giant French oil company operates a business in Burma/Myanmar and should they accept Total's invitation to visit Burma/Myanmar. David Pitt Watson, founder of Hermes EOS has said: "Hermes' philosophy is different from most founds. It seeks to create value for our clients in the companies in which it invests, not just trying to pick winners." Hermes aimed to be a responsible owner of the company and its decision needed to have a view about whether Total was acting properly. Hermes considering that Total is facing some issues since a decade ago, and they are in an unusual situation; Total lost their great reputation due to its involvement in a large oil spill and this makes Total, as a company not takes Corporate Social Responsibility (CSR) issues serious enough. Furthermore, Hermes was successful persuaded Premier Oil to disinvest from Burma in 2001 because Premier Oil was facing some problems of its trading in Burma and the military dictatorship in there is another concern.

SWOT Analysis
Hermes Fund Manager established in 1983, it is a principal manager for the BT Pension Scheme and managers investment on behalf of other pension plans. Hermes Equity Ownership Services (EOS) is a subsidiary of Hermes Fund Managers. it is launched in 2004 and is a pioneering advisory service, which enables its clients to be responsible investors and owners of companies. Its key aim is to support pension schemes, insurance funds and other long-term investors to meet their fiduciary responsibilities and become active owners of public companies. Hermes manages £24.8 billion* assets on behalf of clients across these investment areas. Additionally, its supports pension funds and other global institutional investors in meeting their...
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