The Pension Protection Fund has tendered several mandates for U.K. equity, global equity, real estate and currency. The move is part of its strategy outlined in the fund’s 2006 Statement of Investment Principles, PPF Spokesman Robert Jones explained. U.K. equity will form 12.5% of the portfolio, global equity a further 7.5% and real estate 7.5%. Currency will form 2.5%. A total of five to 10 new managers will be appointed for the other asset classes.
The PPF’s strategy, which incorporates a form of liability-driven investment, is intended to provide security for pension scheme members, while at the same time enhancing value in the longer term for the levy payer. The fund will seek to enhance returns by investing in U.K. and global equity hedged back into sterling, global government bonds hedged back into sterling, property and currency overlay (GMM, 11/10). Fixed income is currently managed by Insight Investments, PIMCO and Goldman Sachs Asset Management.
The deadline for receipt of tenders is Dec. 1, with appointments expected in the new-year. Mercer Investment Consulting is the consultant.