PPF Expands Its GTAA Manager List after Threefold Growth

(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.

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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.

(April 18, 2013) — Paul Trickett, formerly head of Goldman Sachs Asset Management’s (GSAM) Global Portfolio Solutions Group (GPS), has returned to his roots and joined a large UK pension fund, aiCIO has learned.

Trickett joined the Zurich Financial Services UK Pension Scheme last month, the company confirmed to aiCIO. He has taken the role of chair of trustees to the scheme, which is worth around £4.5 billion according to the most recently available figures.

He joined GSAM in October 2010 as head of the GPS group in Europe, Middle East, and Africa after spending 12 years at Watson Wyatt – which merged with Towers Perrin to become Towers Watson – rising to become head of the investment practice for the EMEA region at the time of his departure.

Previously, Trickett had been the CEO of one of the UK’s largest pension pots – the British Coal Pension Scheme. In 1996, under Trickett’s stewardship, the British Coal fund acted as a springboard for Goldman Sachs to launch its asset management offering into Europe.

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When British Coal was privatised in the 1990s – it had previously been a state-owned industry – Goldman Sachs bought the rights to manage 80% of its then £20 billion pension scheme.

The deal allowed the bank to run money through a balanced portfolio for a six-year term. The contract was substantially cut back in 2009, while GSAM retained responsibility for a much smaller part of a more diversified portfolio.