Kaiser Aluminum & Chemical Corp. pension fund, Pleasanton, Calif., is eliminating its real estate allocation, totaling 7% of its $600 million pension fund, said Ronald Hutton, director-treasury.
``Our research shows real estate has a similar return profile to fixed income without the liquidity,'' he said.
The Kaiser fund will liquidate all of its real estate over several years.
The allocation is run by seven real estate managers, which Mr. Hutton declined to name. The proceeds will be invested in domestic fixed income with Frank Russell Trust.