Standard Life reappointed to EUR 444m pension fund portfolio

Standard Life Investments (SLI) has been reappointed by Lothian Pension Fund to manage a segregated property portfolio valued at £350 mln (EUR 444 mln) following a competitive tender 'involving a number of investment houses'. Edinburgh-registered Standard Life is one of the largest property investors in Europe, and the Lothian Pension Fund has assets of £3 bn.

Sandy Pringle, fund manager, will continue to be responsible for managing the Lothian account. The fund's objective is to outperform the IPD index by 1% per annum on a rolling three year basis. The mandate will include the option for SLI to invest in indirect vehicles, both UK and overseas.

SLI was originally selected by the Lothian Pension Fund to run a £136 mln segregated property portfolio in 2001 for a fixed term of seven years. The fund has achieved its outperformance targets over one, three and five years, SLI said.

Stephen Acheson, head of Global Client Services & Business Management, Standard Life Investments, said: Winning mandates the first time round can be hard enough, but retaining them is even harder - especially after a seven-year period - so we are delighted at the Lothian Pension Fund's decision to reappoint us'.

Earlier this week, SLI said it had strengthened its Paris-based European property team with the appointment of Philipp Bach as portfolio manager. Bach was formerly an investment consultant for international investors with CB Richard Ellis in Paris.