The Pension Protection Fund (PPF) has delivered “strong investment performance” over the past year, as investment returns helped its reserves grow from £12.1bn last year to £13.2bn, its 2023/24 Annual Reports and Accounts has revealed.

The annual report showed that, despite an uncertain inflation and interest rate backdrop, the PPF maintained a “strong funding position”, with its growth portfolio delivering a return of 7.2 per cent over the past year.

In total, the fund’s assets under management stood at £32.1bn as at the end of March 2024.

This "robust" funding enabled the PPF to continue to reduce its levy collection and confirm its lowest ever levy estimate of £100m for 2024/25, although industry experts have still argued that the lifeboat should look to cut its levy to zero, given these recent funding improvements.

More broadly, the PPF's report highlighted its "excellent service" for members, revealing that 98 per cent of its members were satisfied or very satisfied with PPF service over the past year.

It also confirmed that it has now concluded the complex implementation of calculations and, where possible, made payments to members due uplifts owing to the Hampshire judgment and removal of the PPF cap.

According to the report, the lifeboat also made "notable" progress assessing claims to the Fraud Compensation Fund (FCF), completing 21 cases, including the Norton Motorcycles scheme.

In addition to this, the report confirmed that the PPF met its stewardship target to demonstrate excellence in responsible investment, with 90 per cent of the 'Climate Watchlist' companies in its investment portfolio making disclosures on emissions.

PPF employees also surpassed their target to spend 500 days volunteering in the community this year, as part of the lifeboat's community impact program.

Commenting on the annual report, PPF chair, Kate Jones, said: “In a year of change where the PPF has moved increasingly into the spotlight, I‘m pleased that we’ve continued to deliver for our existing members and levy payers.

"We’ve engaged productively with stakeholders over the past year and will continue to ensure that the voices of our members, levy payers, and DB members are heard – their interests remain at the forefront of our work.”

PPF chief executive officer, Michelle Ostermann, added: “I am very proud to have taken the reins at the PPF – a world-class and highly regarded institution – at such a pivotal time for the UK pensions industry.

“As we enter an exciting new chapter, I look forward to building on the PPF’s highly successful investment and member services capabilities.”

---