Royal Bank of Canada subsidiaries in Guernsey, Channel Islands have been selected to provide custody and fund administration services for Hermes Pensions Management Ltd.’s new offshore fund of hedge funds.

This agreement represents approximately £500 million ($1.1 billion CDN) in assets under administration.

“Hermes is glad to be working with the highly skilled and professional team at RBC and we’re very confident in their abilities,” said Tony Allen, director, Securities Operations of Hermes Pensions Management Ltd. “Partnering with a provider who has strong technological and operational capabilities as well as an in-depth and comprehensive knowledge of the fund of hedge fund industry were key factors in our decision.”

Through this new agreement the RBC subsidiaries will provide custody, corporate trustee, fund accounting, recordkeeping and banking services for Hermes’ new offshore fund of hedge funds, which launched November 1.

“This is an exciting new venture for Hermes and we are proud to play an integral role,” said Ron Nutter, global head Corporate and Institutional, Royal Bank of Canada Global Private Banking.