The proposal will involve the complete migration of the Hermes Pensions Management investment operations functions to the Bank's BNY SmartSource strategic IT platform and centralized outsourcing business model. The Bank of New York will assume responsibility for operational functions including trade support, asset servicing, data management and position keeping.

Gerard Quirke, chief operating officer of Hermes, said, "The Bank of New York consistently demonstrated that it understands the complexity of investment administration and the servicing requirements of our major pension fund clients. We are confident that the bank will provide us with a strong and cost effective platform, allowing us to focus on our core activities and mitigate operational risk."

Tim Keaney, head of Europe at The Bank of New York, continued, "Our selection by Hermes is a significant success for BNY SmartSource and for the Hermes relationship team here in Europe. In being selected to progress with this prestigious mandate, we have not only demonstrated our capability to meet the needs of asset managers and their clients, but also that we are committed to providing investment operations outsourcing services to leading industry players. This arrangement further extends our leadership position in the outsourcing arena."

Hermes sees key benefits for the future by moving their investment administration to BNY's platform, as part of their strategic forward planning. Moving to BNY and the SmartSource platform will allow Hermes to focus on its core business, Fund Performance, and release its future IT resources to develop new Front Office Investment systems.