Institutional Investors

UK’s Cheshire to enter the absolute return space

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Cheshire Pension Fund, based in Chester in the UK, is pushing ahead with seeding an absolute return allocation carved out of its UK equity portfolio as it revamps its investment approach.

The fund, which has $4.4 billion in assets, will ultimately have around 15% in absolute return – with an additional 5% in an ‘opportunities fund’, designed to allow the pension fund flexibility to take advantage of shorter-term investment opportunities.

The move to a more ‘barbell’ structure came as the result of a review in early 2011, which saw roughly half of the UK equity allocation moving to