Devonport Royal Dockyard Ltd. Pension Scheme, Plymouth, England, terminated a £32 million ($45 million) commercial property portfolio managed by Royal London Asset Management. Trustees for the £660 million plan decided to move out of property holdings.
CB Hillier Parker Investors was hired to sell the properties. Proceeds will be reallocated to the plan’s externally managed U.K. and international equity holdings, which are 48.5% and 26.5% of total assets, respectively, said Neil Skinner, pensions manager. Capital International, Fidelity Pensions Management and Societe Generale Asset Management U.K. are jointly responsible for those allocations.
The decision follows an investment review late last year in which the fund increased its fixed-income allocation to 25% of total assets, from 17%, to meet U.K. statutory funding requirements and reduce investment risks, Mr. Skinner said. Henderson Global Investors manage the plan’s fixed-income portfolio. "We saw property as an equity proxy,” he added.
