London Borough of Croydon Pension Fund is shifting its £70 million ($116 million) in international equities to passive management from active, said Ian Talbot, pension fund manager. The £300 million plan has "given notice" of its intention to terminate Dresdner RCM Global Investors, which runs the money in active international equities, he said. "It's an asset allocation decision to reduce volatility. We are already exposed, as a scheme, to volatility by being 100% invested in equities, and we think going to a passive benchmark will reduce volatility," Mr. Talbot said.
The remaining £230 million is managed by Hermes Pensions Management in passive U.K. large-cap and midcap equities benchmarked to FTSE 350 index.
The plan will search for at least one passive international equity manager to run the money, he said. Mercer Investment Consulting is advising.
