Hermes, manager of the UK’s largest pension scheme, has called a halt to restructuring plans following the poor performance of its biggest activist fund and the departure of two fund managers.

The move is a blow to Rupert Clarke, Hermes’ chief executive since December 2007, who had hoped to turn the group, which manages the assets of the BT Pension Scheme and is owned by the BTPS, into autonomous investment boutiques within the next year or so.