UK PPF's diversification plan continues with GTAA hires
UK - The £4bn (€4.9bn) Pension Protection Fund (PPF) has appointed six Global Tactical Asset Allocation (GTAA) managers in line with its revised statement of investment principles (SIP) published earlier this year.
Cantab Capital and Winton Capital have been appointed with immediate effect to run a mandate valued at up to 2.5% of the PPF’s £4bn assets.
Meanwhile, Aspect Capital, Bluecrest Capital, DB Advisors and Neuberger Berman are on ‘deferred appointment’.
This means the four managers will be on standby should the PPF decide to further increase its GTAA mandate in line with the growth of the fund’s overall assets.
The GTAA allocation will form part of the PPF’s alternatives portfolio after the SIP published in March confirmed the organisation’s investment strategy had been altered so that while 70% would remain invested in cash and bonds, listed equities would fall from 20% to 10% and alternatives such as property, private equity, infrastructure and GTAA would double from 10% to 20%. (See earlier IPE article: PPF to diversify investment strategy from equities to alternatives)
Most recently, the PPF appointed a panel of seven private equity managers as part of the diversification plan, with the aim of targeting the secondary private equity market to take advantage of near-term opportunities. (See earlier IPE article: PPF assigns private equity manager panel)