UK – The Pension Protection Fund will appoint specialist fund managers from next year, according to its new three- year strategic plan.
The move would come as moves to a liability-driven investment strategy, as previously reported by IPE.
The PPF has three fixed income asset managers already on its roster - Insight Investments, PIMCO and Goldman Sachs Asset Management (deferred appointment). State Street is its custodian.
“The long-term investment strategy of the board will have an impact on its solvency,” the plan stated today.
“The board will develop a revised statement of investment principles that outlines its approach to managing levy assets, assets transferred from schemes and its approach to guiding trustees during the assessment period.
“The board will take a liability driven approach to managing its investments (i.e. take into account the cash flows it is committed to paying out when setting its asset allocation strategy, investment risk and performance targets).”
The PFF says its six strategic objectives are fundamentally the same as those published in last year's annual report.
New PPF chief executive Partha Dasgupta said: "The Strategic Plan provides clarity to our stakeholders on our direction and thinking on key issues, demonstrating our continuing commitment to openness and transparency.
"We will continue to work with our stakeholders to encourage risk reduction in the pension system. This is clearly in the interest of both scheme members and levy payers, as it should lead to fewer and lower claims on the Pension Protection Fund, and could potentially reduce the risk based levy in future."