PPF to add 3rd global bond manager

Pension Protection Fund, Croydon, England, plans to add a third global bond manager, spokeswoman Ana Moreno confirmed. The initial allocation of about £200 million ($393 million) will increase to about £350 million by March 31, 2009. The fund’s current allocation to global bonds total about £540 million, which is evenly split between Goldman Sachs Asset Management and PIMCO; the two managers’ portfolios will not be affected. Funding for the new manager is likely to come from cash inflows stemming from an annual levy collected from eligible U.K. corporate sponsors and any pension asset transfers to the £1.4 billion fund, the U.K. equivalent of the PBGC. A manager should be selected this fall. Consultant Mercer is assisting.