Lothian Pension Fund selects Hermes EOS

The company will provide voting, corporate engagement and public policy services, on its global equity portfolios.

Hermes EOS chief executive officer Colin Melvin said: "We are delighted to welcome Lothian Pension Fund as our first UK local authority pension fund client.

"We expect other local authorities will also decide to engage effectively and constructively with companies and use their voting rights to influence practices for the better."

Melvin said trustees are "increasingly realising the benefits of being active and engaged owners of companies in addressing their responsibilities and achieving good long term performance".

He said the trend had been encouraged by the United Nations’ Principles for Responsible Investment which has more than 360 signatories.

Other Hermes EOS clients include The National Pensions Reserve Fund of Ireland, PNO Media, PSP Investments, PKA, VicSuper, the BBC Pensions Trust and the BT Pension Scheme, which owns Hermes.