UK - The 380 million-pound (568 million-euro) pension scheme of printing firm Polestar Group has awarded Investec Asset management a 140 million-pound fixed income mandate.

The mandate is to manage UK gilts and corporate bonds with an out-performance target of 0.75% over a rolling three year period against the FTSE A Over 15 years Gilts and iBoxx £ non-gilt 15 year plus indices.

Investec is the latest in a series of appointments which started after the fund embarked in a review of its pensions provision in 2002, which resulted in the firm’s three schemes partially merging.

The other managers are: Merrill Lynch in charge of 92 million pounds in UK equities, CB Richard Ellis with 34 million pounds in real estate and Alliance Bernstein running 115 million pounds in global equities.

ABN Amro Mellon was appointed global custodian in February.

The Polestar pension fund is currently 24% invested in UK equities while global equities account for around 30%. Fixed income: 20%; corporate bonds: 17% and real estate: nine percent.

Catherine Hearn, chairman of the trustees, said: “We appointed Investec because of its consistent track record and rigorous investment process. We are confident that its specialist investment team will deliver good returns for our pension fund.”

Mark Samuelson, head of UK institutional at Investec, said the mandate was a “great recognition” for its fixed income team.

Before the three sections of the Polestar Pension Scheme partially merged, the Watmoughs Scheme was managed by Scottish Widows Managed Fund, the BPC Retirement & Life Assurance Plan by Schroders in a multi asset portfolio and the BPC Pension Plan by Merrill Lynch for UK and overseas equities, while Schroders had a multi-asset portfolio.

Hewitt Bacon & Woodrow has acted as consultant.