The pension fund of the Royal Automobile Club (RAC), the UK breakdown cover provider, is to pull out of hedge funds. It is understood it will redeem a holding in a fund of funds, probably before the end of the year, in an attempt to de-risk its portfolio.
The plan, which has total assets of around $1.4 billion, has a roughly 5% allocation to the fund of funds. However it will now redeem this.
The RAC is part of the Aviva group and it is understood part of the pension fund may now be managed by Aviva Investors.