The Pension Protection Fund (PPF) has appointed seven fund managers as part of its development of its alternative investment portfolio.

The managers will invest in farmland and timberland. The PPF has made this decision so that it can benefit from greater diversification and reduce its overall risk.

The seven appointed fund managers are: Brookfield Investment Management, Dasos Capital Oy, GMO Renewable Resources, Hancock Timber Resource Group, Macquarie, New Forests Pty and Stafford Timberland Group.

Martin Clarke, PPF's financial risk executive director, said: "We now have an investment portfolio worth more than £12bnn and the size of our assets means that we can take advantage of a broader range of investment opportunities.

"Investing in farm and timberland will complement our existing alternative investment portfolio, allow us to diversify our investments more widely and make our portfolio more resilient.

"But we do need to be aware that there are some risks in these asset classes, for instance land price risk. Therefore, our approach will be to invest conservatively – which is consistent with our overall low-risk strategy."

The proportion of PPF assets allocated to farm and timberland will vary over time and will depend on the opportunities available. Some managers will be funded immediately while others are appointed for deferred investment.

The fund managers were appointed for four years, with the flexibility for two extensions of up to two years.


First published 26.11.2012

monique_simpson@wilmington.co.uk