UK - The £400m London Borough Croydon Pension Fund has dumped Edinburgh Fund Managers from a £47m UK small-to-mid caps active equity mandate, citing volatile market conditions as the reason behind the move.
Hermes Investment Management, which in August was appointed to a £220m UK passive portfolio previously run in-house, is to temporarily oversee the assets.
Ian Talbot, assistant director of finance at the local authority fund said that Croydon remains committed to a 100% equity stance.
He added that the although no firm decision had been reached on the long-term direction of the transferred assets, the fund was likely to manage the monies on a UK passive index basis. A decision on the £47m portfolio is expected during Q1, 2002.
Dresdner RCM Global Investors also runs just over £100m in active global equities for the fund. Talbot stressed that “there is no suggestion at this moment of altering Dresdner’s mandate”.
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