The Pension Protection Fund (PPF), more commonly known as the UK pensions ‘lifeboat’ scheme, has made a push into global real estate by picking two real estate managers to advise it on developing an investment strategy.
The £4.5 billion (€5.2 billion; $7 billion) pension fund, created in 2005 to compensate pension holders from bankrupt employers and insufficient pension schemes, said LaSalle Investment Management and CBRE Investors had won the mandate.
It also said that Aviva Investors would continue to manage an existing UK portfolio and would be “available for a global portfolio” on a deferred appointment basis. Aberdeen Investors and Invesco Real Estate are also on deferred appointments.
In a statement, PPF said this was part of a strategy to develop its alternatives portfolio as set out in its statement of investment principles. The appointments will be for an initial three years with PPF having the option to extend them for another three.
Last July the fund picked Goldman Sachs, Pantheon, Hamilton Lane, Lexington, LGT, Partners Group and RREEF as advisors to carry out a private equity secondaries programme. That followed a move earlier in March 2010 to allocate 20 percent to alternatives.
In its 2009,2010 annual report, the fund said it had directly protected 46,000 people and had built up assets of £4.5 billion.