The new fund will build a portfolio of assets with low levels of depreciation and volatility, and aims to track and exceed the Retail Prices Index by 4% to 5%. The fund size is expected to hit GBP500 million over the next five years, according to reports.
The fund will be managed by three former UBS Global Asset Management directors: Charles Crowe, Paul Dennis-Jones and Andrew Grigson, who joined Pramerica in June 2009.
The Citywire has quoted Mr Jones as saying: "The fund is designed to tap into the increasing focus on liability-driven investment in the UK. Institutional investors are increasingly focused on liability-driven investing and now demanding such products across a range of asset classes, including real estate."
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