Hermes Pensions Management and Lens Investment Management announced a joint venture to create the U.K.'s first institutional fund manager geared toward increasing shareholder returns on companies with hidden underlying value. The firm, Hermes Lens Asset Management, will be 75% owned by Hermes and Lens will own 25%.
The new firm's first fund, Hermes UK Focus Fund, will be launched in the summer and be marketed to institutions in both England and the U.S. It will focus on midcap to large-cap companies listed on the London Stock Exchange. The fund already has commitments in excess of L100 million.