Avon Pension Fund, Bristol, England, will sell off its £40 million ($57.1 million) directly held U.K. real estate portfolio and move out of the asset class, said Tony Worth, investments officer. Trustees for the £1.6 billion plan thought the asset class was too illiquid and not sufficiently diverse.
Cash raised from the sale of the properties will be reallocated within the plans current asset allocation: 50% U.K. equities, 25% international equities, and 25% U.K. bonds and cash. The plans assets are managed by Barclays Global Investors and Gartmore, both of which manage passive multi-asset mandates, and Merrill Lynch Investment Managers, which runs an active multi-asset portfolio.
GVA Grimley is advising.