Local government election results at the GBP400 million London Borough of Croydon Pension Scheme have derailed real estate and fixed-income manager appointments. Political change„in the form of the Conservatives gaining control of the council from Labour„has resulted in a new administration and, therefore, new subcommittee, which makes investment decisions. Earlier this year, the scheme announced plans to cut its equity allocation and chose real estate and fixed income to diversify (GMM, 26/1).
The subcommittee will decide whether to continue with real estate and fixed-income manager appointments or “look at everything again,” said Nigel Cook, financial services assistant director. He, however, clarified that it is still possible that Croydon will go ahead with diversification plans. “They will meet for the first time on the 26th of this month,” he noted. A decision is not expected until later this summer.