Avon Pension Cuts Two Funds Of Funds, Boosts Two Others

Mar 25 2011 | 11:29am ET

A British public pension fund has terminated one fund of hedge funds and significantly cut back on its investment in another.

The Avon Pension Fund, which manages £2.2 billion on behalf of Bath and North East Somerset Council's employees, redeemed its entire investment with Lyster Watson and slashed its investment with Man Investments by one-third, HFMWeek reports. The moves were part of a review of the pension's hedge fund allocations, which make up 10% of its portfolio.

Lyster had managed 5% of that hedge fund portfolio and Man 45%. The latter will now manage just 30%; Avon said the reduction was due to "significant change" at Man and the fact that its "underlying portfolio is highly diversified, which could dilute potential returns."

The winners were two of Avon's other hedge fund managers: Signet Group and Stenham Asset Management. The former will now manage 30% of Avon's hedge fund portfolio, up from 20%, and the latter 15%, up from 5%.

Avon also invests with Gottex Fund Management.


In Depth

AIMA: Smaller Firms Remain the Lifeblood of the Hedge Fund Industry

Jul 26 2017 | 5:55pm ET

It is a hedge fund industry truism that the largest managers receive the most attention...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of