The UK government-backed fund designed to protects savers in company pension plans has slashed its exposure to equities by one-third.
The Pension Protection Fund, one of the largest pension funds in the UK with £39bn in assets, has reduced its equities target from 9% to 6%.
At the same time, the PPF has increased its infrastructure allocation from 2.5% to 4.5% and its forestry, farms and agriculture holding from 2% to 3%, taking the latter to more than £1bn invested.
“Some of our real estate exposure is inflation-linked,” said chief investment officer Barry Kenneth. “So we do have additional inflation protection within the book. So that gives me some comfort if inflation remains sticky.”
