The California Public Employees' Retirement System (CalPERS) has announced it is investing $500 million with Standard Life Investments.
The move is part of CalPERS' Multi-Asset Class (MAC) Partners Program, according to the announcement.
Joseph Dear, CalPERS chief investment officer, said the company is excited to have Standard Life on board.
"Standard Life's approach presents us with an excellent opportunity to add value to our portfolio, and to our investment operations by bringing in an outside perspective as we work toward our long-term investment goals," he said.
Standard Life is the first of four external managers partnered with CalPERS in the MAC Program.
Keith Skeoch, chief executive officer of Standard Life Investments, said the move presents a good opportunity for Standard Life Investments to work with the CalPERS investment team.
"What is really exciting about the partnership is the knowledge exchange element of the program, and strong alignment of our interests with those of CalPERS and its participants. We look forward to a long and successful relationship," said Mr Skeoch.
The MAC program is intended to outperform the CalPERS total fund over a market cycle, and is expected to facilitate a transfer of meaningful information from the MAC Partners to CalPERS investment staff, the announcement said.
