London Borough of Croydon pension fund has chosen Hermes Investment Management to run a £220m (€353m) passive portfolio, largely because of Hermes' determination to engage with companies in which it invests.

The mandate is to track the FTSE 100 index. Hermes was up against the best-known index tracking managers in the UK on a long list of six and a short list of three. Hermes' stance on corporate governance and socially responsible investment (SRI) swayed the day in its favour.