UK’s €10bn responsible investment-focused pensions lifeboat in bond move

Leading responsible investor seeking bond managers

The Pension Protection Fund, the UK’s £9bn (€10.8bn) pension ‘lifeboat’ fund that is a leading responsible investment advocate, is looking to appoint a panel of specialist fixed income managers.
The PPF, which has a stated commitment to responsible investment across all asset classes and markets, says its is looking for managers with expertise in absolute return strategies, asset backed securities and emerging market debt – marking a move away from the sovereign debt market.

It hopes it will give it greater flexibility and help deliver attractive returns.
The PPF is a signatory to the Financial Reporting Council’s Stewardship Code, the UN Principles for Responsible Investment, the Carbon Disclosure Project (CDP) and its offshoot, CDP Water.“The new panel will complement the fund’s existing managers and will give the PPF the flexibility to access a broader range of bond strategies,” the PPF said.

The current bond managers – Goldman Sachs Asset Management, Mondrian, PIMCO and Rogge – will continue under the terms of their current contracts.

The PPF is a signatory to the Stewardship Code, UN PRI and CDP

All the new contracts will be initially for four years with two renewals lasting for a term of two years.

The PPF is looking for firms that can be flexible and “accommodate the commercial terms” it proposes. The PPF says it may also use an independent adviser during the tender process. The deadline for tendering is February 7.