Investment - Articles - NEST looks to procure emerging market bond fund mandate


NEST (National Employment Savings Trust) is planning to enhance its ability to diversify members’ portfolios by procuring an emerging market bond fund mandate. This will be added to the existing ‘building block’ funds that underpin the scheme’s default NEST Retirement Date Funds and some of its alternative fund choices.

 The scheme is searching for an actively managed pooled emerging market debt fund that blends bonds denominated in both local currencies and hard currencies (predominantly US Dollars).
  
 Mark Fawcett, NEST chief investment officer, said:
 ‘Emerging market debt is becoming a strategic holding for a growing number of pension schemes. This is in part because emerging market bonds can offer attractive yields in an otherwise low yielding fixed income environment. We think it’s appropriate to have emerging market debt among the growing number of asset classes NEST can call on to deliver better retirement outcomes for our members.
  
 ‘NEST is committed to searching out new opportunities for diversification where we see potential benefits for our members. Emerging market debt has evolved over the past two decades. What was once a small market of US Dollar-denominated sovereign debt is now a diverse mix of local and hard currency sovereign and corporate debt totalling more than USD 2 trillion. We want members to be able to reap the benefits of exposure to this market.
  
 ‘We believe an active management approach can take advantage of opportunities while managing the portfolio risk by avoiding unattractive or risky borrowers. By having an investment universe of both hard and local currency debt, the manager will have the ability to invest in the most attractive areas of the market.’
  
 The deadline for receiving tenders will be in October 2015 with a view to awarding the contract in early 2016.

Back to Index


Similar News to this Story

Inheritance Tax raises almost GBP6 billion in 8 months
December’s update from HMRC shows that Inheritance Tax (IHT) receipts reached £5.7 billion through the first two-thirds of this financial year (April
PIC completes first Mosaic buyin with GCB Pension Fund
Pension Insurance Corporation plc (“PIC”) has concluded its first full scheme buy-in within Mosaic, PIC’s streamlined service for pension schemes with
Airways Pension Scheme complete longevity hedge with MetLife
The Trustees of the Airways Pension Scheme (“the Scheme”), Metropolitan Tower Life Insurance Company, a subsidiary of MetLife, Inc., (“MetLife”) and Z

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.