28/08/2007

SLI appointed as Bond Manager to £300m portfolio for the Pensions Trust

Standard Life Investments, one of the largest fixed income managers in the UK, today announced that it has been appointed as a bond manager by The Pensions Trust, one of the leading UK multi-employer occupational pension funds operating in the charitable, social, educational, voluntary and not-for-profit sectors.

As part of the appointment and following a restructuring of The Pensions Trust’s fixed income portfolio, Standard Life Investments has been selected to manage a £140m UK gilt portfolio. The fund manager already manages UK corporate bonds for The Pensions Trust, which brings the new enlarged aggregate bond portfolio to £300m.

Craig MacDonald, Investment Director – Corporate Bonds, will be the portfolio manager responsible for the account. The enlarged fund’s objective is to outperform the iBoxx Sterling Overall Index.

Standard Life Investments has been successful in attracting a number of fixed income mandates in recent years, including the London Borough of Redbridge (£95m). It now manages over £46bn in fixed interest around the world.*

Stephen Nichols, Chief Executive of The Pensions Trust, said: "Following a review of its fixed income portfolio, The Pensions Trust has decided to extend Standard Life Investments’ mandate to include gilts alongside corporate bonds. We are satisfied that this manager has the right combination of skills, experience and ideas to deliver the performance we expect."

Eddie Gimlette, Investment Director – Institutional Clients, Standard Life Investments, said:

"The Pensions Trust is one of the largest industry wide pension funds in the UK, so we are naturally delighted that we are extending our relationship with them through our appointment as their core fixed income manager."

"Our selection is recognition of the quality of our people backed up by a robust and repeatable investment process - a combination that has enabled us to generate strong outperformance in gilts and corporate bonds in recent years."

Standard Life Investments’ flagship £1.6bn Corporate UK Corporate Bond Fund has outperformed its benchmark, the Merrill Lynch Sterling Non-Gilts All Stock Index, each year for the last five years.**

*As at 31.12.06.
**Source: Standard Life Investments (in compliance with the Global Investment Performance Standards (GIPS)), based on gross figures to 30 June 2007.