The London Borough of Croydon Pension Fund has chosen Hermes Investment Management to run a £220m FTSE 100 indexed portfolio. Ian Talbot, treasury head of treasury at Croydon, said: "We chose Hermes for four reasons. First, their corporate governance approach is in line with our thinking - we firmly believe in engagement with companies whose shares we hold.
“Secondly, we were impressed with their enthusiasm – they are building their third-party business and are keen to work closely with us. Thirdly, their long term index-tracking performance is excellent and last, but not least, they are excellent value for money.”
Anthony Esse, marketing director at Hermes, added: “We first started offering our services to third parties in 1998 and have now accumulated £2.5bn in third party business. We look forward to working closely with London Borough of Croydon and will ensure we meet their objectives.”
By Janet Du Chenne
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.