The Pension Protection Fund has appointed a further nine managers to its global tactical asset allocation panel.
The pensions lifeboat fund said the move was part of an overall investment strategy to make sure its growing £15bn portfolio remained resilient and fit for purpose.
The PPF’s enlarged GTAA Panel now comprises a total of 15 managers, with nine new recruits including: AQR Capital Management; Arrowgrass Capital Partners; Brevan Howard; Caxton Associates; Fortress Capital; GMO; Harmonic Capital Partners; Man Investments; and Two Sigma Investments.
They join existing panel members Aspect Capital, Bluecrest Capital, Cantab Capital, Neuberger Berman, QS Investors and Winton Capital, who were all appointed in 2010.
The managers, who will form part of the PPF’s growing alternatives portfolio, have been appointed for four years, with the flexibility for two extensions of up to two years. The proportion of the alternatives allocation to GTAA will vary over time and depend on the opportunities available in the future in both GTAA and the other alternative asset classes.
PPF executive director of financial risk, Martin Clarke (pictured), said: “GTAA differs from traditional approaches to fund management. As an asset class it tends to have enhanced diversification properties, which helps control the level of risk that we face and this fits in with our overall low risk investment philosophy.
“Since the appointment of the first GTAA managers more than three years ago, our portfolio has almost quadrupled from £4.6bn to about £15bn. So, as we continue to grow, we expect to spread our GTAA investments more widely.”
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