(April 18, 2013) — The Pension Protection Fund (PPF) is seeking to double its global tactical asset allocation (GTAA) panel after its total assets grew threefold, from £4.6 billion in May 2010 to £13.5 billion in February 2013.
Currently, 5% of the PPF’s assets are invested in GTAA , but that is subject to change, based on market conditions.
As it stands, the UK’s lifeboat scheme, which takes on final salary schemes of bankrupt companies, employs six fund managers: Aspect Capital, Bluecrest Capital, Cantab Capital, QS Investors, Neuberger and Winton Capital.
The current panel consists of two broad styles of managers; those who adhere to a more systematic and technical style, and others who follow a more fundamental macro approach, the PPF told aiCIO.
A new tender has been published for up to 12 managers to be appointed. The existing managers have been invited to apply for the new panel.
The PPF told aiCIO that it wanted to appoint managers with a similar investment style to the current six, allowing it to access both systematic (or quantitative) and unsystematic approaches to global tactical investing.
All managers considering applying should be aware that any specific investment opportunity will be scrutinised by the PPF and must be found to be sufficiently attractive in combination with its other investments, as well as being consistent with the PPF’s low risk philosophy.