Avon Pension Fund, Keynsham, England, terminated an investment with FRM Holding, Man Group's hedge funds-of-funds division, worth about £64 million ($99 million), confirmed Matt Betts, assistant investments manager at the £3.1 billion pension fund.
The termination is the result of the pension fund reducing its target allocation to hedge funds to 5% from 10% in March. The reduction was part of the pension fund's annual strategy review and “concerns about long-term performance targets,” said Mr. Betts in a telephone interview.
As a result of the reduction in the hedge funds target, the pension fund created a 5% target to infrastructure. Mr. Betts said implementation of the pension fund's first investments in infrastructure will take place in 2014. Whether there will be open searches or recommendations by investment consultant JLT Investment Consulting has yet to be determined.
