Institutional Investors

Pension Protection Fund seeks specialists


UK pension funds are continuing to diversify away from equities into hedge funds, according to the Pension Protection Fund as it continues to look for managers with absolute return bond investing expertise.

The $14 billion scheme, which operates as a safety net for defined benefit schemes in the UK, noted the increase in hedge fund investment across the UK. For its own assets, which it sees as likely to grow to around $27 billion by 2015, it has a target of 20% in alternatives.

Last year it appointed three global tactical asset-allocation managers, Cantab, Winton and Neuberger Berman,