London Borough of Croydon Pension Fund hired Hermes Investment Management to run £220 million ($312 million) in indexed equities benchmarked to the FTSE 100. The portfolio was internally managed by fund manager Ivan White, who retired in May, said Ian Talbot, head of treasury. Hermes was hired because its stand on socially responsible investing mirrored the plans own ethical policies, he said.
Also, the £395 million plan will review its asset allocation this month, Mr. Talbot said. It is invested mostly in equities and has suffered sharp performance swings over the last two years, he said.