The Barnet Council pension scheme is closing its £23 million real estate portfolio, Global Pensions reports. The portfolio, which accounts for 4% of Barnet’s fund assets, will be liquidated after its property strategy is integrated into a diversified growth fund.
As per the scheme’s adviser, JLT Investment Consulting, the property portfolio’s diversifying effects were superseded by the fund’s diversified growth investments, including property allocations. The portfolio, which has £5.9 million with Schroders, £8.7 million with Hermes, £2.4 million with Rockspring Hanover and £6 million with BlackRock, is being shut down due to the risk of its underperformance.
Click here for the story from Global Pensions.