PPF appoints 10 new fixed income managers
UK - The UK’s £12bn (€15bn) Pension Protection Fund (PPF) has appointed 10 new fixed income managers in an effort to broaden the scope of its investment strategy.
The lifeboat scheme’s executive director of financial risk Martin Clarke said the appointment of managers including AllianceBernstein and Morgan Stanley Investment Management marked the “next phase” for its extensive fixed income investments.
“The PPF has a 70% strategic allocation to cash and bonds, and, as we grow, we are looking to develop an investment strategy that will enable us to source a broader range of fixed income investment opportunities, while staying true to our low-risk appetite,” he said.
The selection of 10 new managers, as well as the re-appointment of five existing managers, will allow the fund to award mandates across absolute return, asset-backed securities, emerging market debt, global sovereigns and corporate credit strategies.
In addition to Morgan Stanley and AllianceBernstein, BlueBay Asset Management, Colchester Global Investors, Insight Investment Management and BlueCrest Capital Management joined as new appointees, as well as Investec Asset Management, Loomis Sayles, M&G Investment Management and Stone Harbor Investment Partners.
The companies join Mondrian Investment Partners, Goldman Sachs Asset Management, PIMCO Europe, Rogge Global Partners and Wellington Management International as existing managers that have seen their contracts renewed.
Discussing the changes in asset allocation, Clarke said: “We have already given greater asset allocation to cash to shorten the overall duration of the bond portfolio and will soon embark on a major transition that will bring into play some of the specialist strategies that are now represented in our enlarged panel.”
The framework agreement will run for at least four years, with the contracts renewable twice for an additional period of two years each.