by Pension funds typically hold a small percentage of their assets in real estate, which can offer regular income like a bond but also the opportunity of capital value growth over time. But real estate can be tough to trade in and out of compared with stocks or bonds, meaning property funds have to have special mechanisms which give managers time to sell assets to cash investors out. Many pension funds opted to sell bonds to soothe their liquidity crunches but others are also looking to reduce their exposure to less liquid assets like real estate in the near term, according to industry sources.
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How much will the current withdrawals effect the coming year?