London Borough of Croydon Pension Fund will review its asset allocation this month, said Ian Talbot, head of treasury. The £395 million ($559 million) plan is invested mostly in equities and has suffered sharp performance swings over the last two years, he said. Dresdner RCM currently manages £110 million in global equities, and Edinburgh Fund Managers runs £55 million in U.K. small-cap and midcap equities. The fund also holds £10 million in cash.
Also, the plan hired Hermes Investment Management to run £220 million in indexed equities benchmarked to the FTSE 100. The portfolio was internally managed by fund manager Ivan White, who retired in May, said Mr. Talbot. Hermes was hired because its stand on socially responsible investing mirrored the plan’s own ethical policies, he added.
