LONDON (AFX) - Hermes Pensions Management said it has invested 1 bln stg in
commodities on behalf of its owner and major client, British Telecom Pension Scheme (BTPS).
Hermes said the investment is the largest single allocation to commodities
of any institutional investor in the UK.

It has set up the Hermes Commodity Index Fund, which will track the price performance thorough the derivatives
markets of 24 different commodities which make up the Goldman Sachs Commodities
Index. The investment represents 3 pct of BTPS's total funds of 34 bln stg.