Standard Life Investments has won a mandate to manage $500 million (€390 million) for the California Public Employees' Retirement System (CalPERS).
The firm is the first of four managers CalPERS plans to select for a new multi-asset class programme.
Standard Life will manage the money in a strategy based on its popular Global Absolute Return Strategies (GARS) fund, which contained more than £16 billion (€19 billion) at the end of February.
The pension fund's multi-asset programme aims to outperform the fund's main portfolio over a market cycle using primarily public market assets. Standard Life and the other selected managers are expected to share expertise with the pension fund's investment staff as part of a partnership agreement.
CalPERS is the largest public pension fund in the United States and manages more than $250 billion for current and retired public employees.
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