Hermes Investment Management, owned by the £40 billion BT pension scheme, is shutting its commodities business. It is also running down its funds of hedge funds arm and developing a multi-asset business out of it, as revealed by Financial News in September.

The changes are part of a mission by Hermes chief executive Saker Nusseibeh to bring costs under control and offer strategies relevant to investors. He told Financial News that Hermes had moved from losses to profits: "Next year, I expect us to achieve a 10% operating profit margin, rising to 20% by 2018."