UK – Asset management firm AXA has tapped pension scheme-owned Hermes to run a set of passive funds.

AXA said in a statement that it would add a range of passively managed funds to its group pensions service from October 1. And Hermes – owned by the BT Pension Scheme – would run a set of passive funds which will be added to AXA’s 43 actively managed underlying funds within its group pensions offering.

It said Hermes was appointed “following a detailed review and an in depth-presentation process”.

It said: “The successful manager won the mandate on the strength of its performance record, its complete alignment with UK pension funds through its unique ownership structure, corporate governance policy, its cost proposition and the quality of its client service.”

“The appointment of a passive manager underlines our commitment to offering best practice standards,” said Steve Folkard, AXA’s head of pensions marketing.

“It’s vital that employees are provided with a broad fund choice spanning active and passive propositions.

“We continually review our choice of funds and this strategy reflects our company’s commitment to provide a market-leading group pension proposition.”

Hermes deputy chief executive Charlie Metcalfe added: “We are delighted that following a thorough due diligence process AXA has chosen Hermes to provide index-tracking funds and services.

“Over the past year we have been working to build an institutional distribution network and we are sure that AXA will form an important part of this strategy in the future.”

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