Profits at Hermes, the in-house fund manager for the £31bn (€36bn) BT pension scheme, rose by 57% last year thanks to good investment performance. But the pension managers’ own retirement pot has been shut due to rising costs.

Hermes Fund Managers' profits before tax rose to £16m last year, after its investment managers generated returns and avoided losses worth about £1bn during the year, compared with the relevant market benchmarks.