UK - The £587m (€847m) pension fund of pest control firm Rentokil Initial has awarded Standard Life Investments (SLI) with a £340m UK corporate bond mandate, in a massive shift into bond investments.

The firm announced last year it was closing its defined benefit pension fund, and announced it would effectively reverse the asset mix to 20% equities and 80% fixed income.

At the time, the company said with the move it wanted to address the £349m pension scheme deficit, which arose out of more conservative mortality assumptions.

In December 2005, the company invested £200m to protect already accrued pensions.

In a statement released by SLI, the fund had appointed SLI following a tendering and evaluation process involving a number of investment houses.

"Craig MacDonald, investment director - bonds, will be the portfolio manager responsible for the account," said SLI, adding: "The fund's objective is to outperform the iBoxx Sterling Non-Government Index."