Question to the Department for Work and Pensions:
To ask His Majesty's Government how many times since 2020 the Pension Protection Fund has had to replace an external fund manager for reasons of performance, governance failure, or credit downgrade and what the financial and administrative cost of each replacement was to the Fund.
The day-to-day fund management of Pension Protection Fund (PPF) assets is performed both by the Chief Investment Officer (with authority to delegate to an in-house team of investment professionals) and by reputable external professional fund managers (each of which is authorised and regulated by the Financial Conduct Authority or a similar local regulatory authority as required).
At any point in time, PPF will have approximately 70-80 external fund managers working on its behalf, across 140 different strategies within 15 separate asset classes.
Since 2020, PPF has changed 10 external managers on performance grounds. PPF has not replaced any managers on grounds of governance failure or credit downgrade.
The administration cost of changing a manager varies between strategies. However, PPF works to a budget of approximately £30,000 per change of manager.