UK – Nick Mustoe, chief investment officer of Hermes Pensions Management, will quit at the end of May to become CIO head of equities of Pictet Asset Management (updated).

This is the first senior departure from Hermes since the arrival of new chief executive Mark Anson, who joined from CalPERS in January.

Mustoe is due to start at Pictet on July 1. He has been CIO since 2001, and managed a 120-strong investment team. During his time at Hermes, assets under management grew from £44bn (€64.5bn) to £66bn (€96.7bn).

“Hermes has appointed a search consultant to find a new CIO but will also distribute some CIO functions to individual heads of core asset classes,” said a Hermes release.

This structure will allow greater autonomy and control at this level, in line with changes at other multi-strategy investment firms, the release added.

Mike Carter of fixed interest, James Walsh of alternatives and Angela Orriss of UK equities are among a number of senior individuals already heading up the core areas. James Walsh as director of strategy also has responsibility for asset allocation, said Hermes.

Hermes has been in the news recently for reportedly proposing a shift in investment strategy at its owner, the £34bn BT Pension Scheme.

“I am sorry to see Nick depart and we wish him well in his new position. I’d like to thank him for the significant contribution he has made to Hermes over the years,” said Anson in a statement.

“I am struck by the tremendous strength and depth of the investment culture at Hermes. Nick’s departure provides an opportunity to take advantage of the depth of our talent and to create a more devolved structure for the organisation.

“We believe this has benefits and should provide a more responsive investment structure as the organisation continues to grow and develop.”

Mustoe succeeds Pictet CIO Nicholas Johnson, who is retiring from the role. However, he will stay on as chairman, where he will have the specific mandate to give input on tactical asset allocation and to advise the Pictet partners on the continued development of the institutional business.

"We wanted to keep Nick in the group, so this position was created for him," a Pictet spokesperson told IPE.

Johnson has been at Pictet for just over 13 years.

According to Pictet Asset management chief executive Renaud de Planta, "We are delighted to have secured such a talented and highly respected investment professional with an excellent investment track record. As well as his high reputation as an investor, Nick also has a great deal of experience in successfully managing a large investment team.”


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