Skip Navigation LinksHome > News > 2010 > March 2010 > PPF Statement of Investment Principles

PPF Statement of Investment Principles

Commenting on the PPF’s announcement that it will invest in private equity and infrastructure to seek higher returns, Paul Jayson, Partner at Barnett Waddingham said: 

“I hope that the effect will not be to expose PPF funds to greater risk simply because of managers chasing higher performance targets. That being said, the changes themselves should dampen volatility of performance as introducing private equity, infrastructure and global equities should reduce the correlation of returns compared with holding traditional listed equities. This should hopefully have a positive knock-on effect on the levies required year by year.

“Will the actual return improve? It should be pointed out that the PPF is still protecting its core assets of cash and bonds with 65 per cent of funds. The changes relate to the other 35 per cent "growth assets". Whilst these changes are adding further diversification, which is welcome, I’m not convinced about the appropriateness of increasing the benchmark return. Whilst I would expect smoother returns I would not necessarily expect them to be higher.”

If you have any questions please contact our Marketing department