UK – The £400m (e645m) London Borough of Croydon pension fund has chosen Hermes Investment Management to run a £220 million FTSE 100 indexed portfolio following a head to head with two other investment management firms....

Ian Talbot, Head of Treasury at Croydon, says:"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."

The fund long-listed six managers during the tender process and was advised by William M. Mercer in its final selection.

Tony Watson, Chief Investment Officer at Hermes, comments: "We are delighted that London Borough of Croydon has selected us to run their portfolio. 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."

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