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
PTL has appointed Karein Davie as a client director in its Birmingham office.
The level of interest rate hedging increased to £29.5bn of liabilities in the second quarter as pension funds continued to de-risk, according to BMO Global Asset Management's research.
UK inflation has risen for the first time since November to 2.5% in July, up from 2.4% in June, thanks to rising fuel costs and the price of computer games.
The number of DB pension scheme trustees targeting a buyout with an insurer has increased significantly in the past five years, latest research from Willis Towers Watson shows.