Pensions - Articles - PPF Embarks on a Major Transition in Active Bond Strategies

 
•   Marks next phase in managing extensive fixed income investments
 
•   Provides greater flexibility across a wider range of bond strategies
 
•   Gives access to a broader range of investment opportunities

 The Pension Protection Fund (PPF) has today (Wednesday) enlarged its panel of active bond managers to help it embark on the next phase of managing a wider fixed income investment portfolio.

 To help the PPF achieve this, 15 specialist firms have been appointed (see notes below).

 The PPF's Executive Director of Financial Risk, Martin Clarke, said: "This announcement marks the next phase in the development of our strategy for managing our extensive fixed income investments. The PPF has a 70 per cent 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.

 "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."

 Managers in future will be selected from the panel to invest with mandates, both specialist and general, in a range of fixed income sectors. Collectively, the panel has expertise in absolute return strategies, asset-backed securities and emerging market debt, global sovereigns and corporate credit.

 With the PPF's growing portfolio of assets now at £12 billion, this enlarged panel will give the PPF the flexibility to access a broader range of bond strategies. The PPF will only place funds with panel managers whose strategies and skills are most appropriate to meet its objectives at any given time.

 Contracts for managers appointed to the panel will initially be for four years with the option of extending the contract for two further periods of up to two years.
  

 Notes:

 1. Five firms were re-appointed to the panel. They are:

 
•   Mondrian Investment Partners Ltd,
 
•   Goldman Sachs Asset Management International,
 
•   PIMCO Europe Ltd,
 
•   Rogge Global Partners PLC and
 
•   Wellington Management International Ltd.

 2. Ten firms have been newly-appointed to the panel. They are:

 
•   Alliance Bernstein Ltd,
 
•   BlueBay Asset Management LLP,
 
•   BlueCrest Capital Management (UK) LLP,
 
•   Colchester Global Investors Ltd,
 
•   Insight Investment Management (Global) Ltd,
 
•   Investec Asset Management Ltd,
 
•   Loomis Sayles, a subsidiary of NGAM UK Ltd
 
•   M&G Investment Management Ltd,
 
•   Morgan Stanley Investment Management Ltd and
 
•   Stone Harbor Investment Partners LP.