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Pension Protection Fund

PRI reporting framework 2020

Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Indirect – Manager Selection, Appointment and Monitoring

Listed Equity and Fixed Income Strategies [SAM 01] Selection [SAM 02 - 03] Appointment [SAM 04] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]

Direct - Listed Equity Active Ownership

Overview [LEA 01] Engagement [LEA 02 - 08] Outputs and outcomes [LEA 09 - 11] (Proxy) voting and shareholder resolutions [LEA 12 - 21]

Direct - Fixed Income

ESG incorporation in actively managed fixed income [FI 01 - 12] Implementation processes [FI 01 - 03] (C) Implementation: Integration [FI 10 - 12] Fixed income - Engagement [FI 14 - 16] Outputs and outcomes [FI 17 - 18]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

You are in Organisational Overview » Basic information

Basic information

OO 01. Signatory category and services

01.1. Select the type that best describes your organisation or the services you provide.

Non-corporate pension or superannuation or retirement or provident fund or plan

Corporate pension or superannuation or retirement or provident fund or plan

Insurance company

Foundation

Endowment

Development finance institution

Reserve - sovereign or government controlled fund

Family office

Other, specify

01.3. Additional information. [Optional]

The Pension Protection Fund (PPF) is a statutory fund run by the Board of the Pension Protection Fund, a statutory corporate established under the provisions of the Pensions Act 2004, and is classified as a public financial corporation. It was established to pay compensation to members of eligible defined benefit pension schemes in the United Kingdom, when there is a qualifying insolvency event in relation to the employer and where there are insufficient assets in the pension scheme to cover Pension Protection Fund levels of compensation. We are also responsible for the day-to-day running of the Financial Assistance Scheme (FAS) on behalf of the UK Government.

Over 140,000 people (31 March 2019) are now receiving compensation, and hundreds of thousands more will do so in the future.

The money needed to pay compensation, and the cost of running the PPF is generated by:

charging a levy on eligible pension schemes;
taking of the assets of schemes that transfer to the PPF;
recovering money, and other assets, from the insolvent employers of the schemes we take on; and
investing all income and assets, as part of a prudent strategy.

We have £32.1 billion in our investment portfolio (31 March 2019) which is continually growing, and is currently managed both internally and externally

Highlights as at 31 March 2019

As at 31st March 2019, the PPF had around 250,000 members, made up of 110,000 deferred members and over 140,000 members receiving compensation;
By the end of our financial year, we were supporting 73 schemes in the assessment period, with assets of £6.5 billion and liabilities of £9.5 billion;
By the end of March 2019, the PPF had a funding level of 118.6 per cent;
By 31 March 2019, the probability of success of being financially self-sufficient by our target date was 89 per cent.

Further details regarding the PPF's strategic objectives and investment strategy for the year under review can be found in its annual report and strategic plan, which can be found here:

https://www.ppf.co.uk/sites/default/files/file-2019-07/annual_report_2018-2019_2.pdf

https://www.ppf.co.uk/sites/default/files/file-2019-04/ppf_strategic_plan_2019-2022_final.pdf

OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

United Kingdom

02.2. Indicate the number of countries in which you have offices (including your headquarters).

2-5

6-10

>10

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

430 FTE

02.4. Additional information. [Optional]

OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

Yes

03.3. Additional information. [Optional]

OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/03/2019

04.2. Indicate your total AUM at the end of your reporting year.

Include the AUM of subsidiaries, but exclude advisory/execution only assets, and exclude the assets of your PRI signatory subsidiaries that you have chosen not to report on in OO 03.2

Total AUM
Total AUM	trillions	billions	millions	thousands	hundreds
Currency
Assets in USD
Assets in USD	trillions	billions	millions	thousands	hundreds

Not applicable as we are in the fund-raising process

04.5. Additional information. [Optional]

OO 06. How would you like to disclose your asset class mix

06.1. Select how you would like to disclose your asset class mix.

as percentage breakdown

as broad ranges

	Internally managed (%)	Externally managed (%)
Listed equity	0 0	10-50% 11
Fixed income	10-50% 44	10-50% 20
Private equity	0 0	<10% 4
Property	0 0	<10% 5
Infrastructure	0 0	<10% 2
Commodities	0 0	0 0
Hedge funds	0 0	<10% 5
Fund of hedge funds	0 0	0 0
Forestry	0 0	<10% 2
Farmland	0 0	<10% 1
Inclusive finance	0 0	0 0
Cash	0 0	0 0
Money market instruments	<10% 6	0 0
Other (1), specify	0 0	0 0
Other (2), specify	0 0	0 0

06.2. Publish asset class mix as per attached image [Optional].

06.3. Indicate whether your organisation has any off-balance sheet assets [Optional].

Yes

06.5. Indicate whether your organisation uses fiduciary managers.

Yes, we use a fiduciary manager and our response to OO 5.1 is reflective of their management of our assets.

No, we do not use fiduciary managers.

06.6. Provide contextual information on your AUM asset class split. [Optional]

During 2018-2019, we insourced internal management of UK listed corporate bonds and cash/money market assets.

OO 07. Fixed income AUM breakdown (Private)

OO 08. Segregated mandates or pooled funds

New selection options have been added to this indicator. Please review your prefilled responses carefully.

Provide a breakdown of your organisation’s externally managed assets between segregated mandates and pooled funds or investments.

Asset class breakdown	Segregated mandate(s)	Pooled fund(s) or pooled investment(s)	Total of the asset class (each row adds up to 100%)
[a] Listed equity	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[b] Fixed income - SSA	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[c] Fixed income – Corporate (financial)	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[d] Fixed income – Corporate (non-financial)	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[e] Fixed income – Securitised	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[f] Private equity	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[g] Property	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[h] Infrastructure	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[j] Hedge funds	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[k] Forestry	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[l] Farmland	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%

08.2. Additional information. [Optional]

OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

94 Developed Markets

3 Emerging Markets

0 Frontier Markets

3 Other Markets

Total 100% 100%

09.2. Additional information. [Optional]

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