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Nest hands emerging market mandates to HSBC and Northern Trust

Nest has added emerging market funds to its default option, with the mandates going to HSBC Asset Management and Northern Trust Asset Management.

The fund will invest through HSBC Global Investment Funds Economic Scale Index GEM Equity Fund and The Northern Trust Emerging Markets Custom ESG Equity Index Fund.

The funds will form part of Nest’s default Retirement Date Funds.

Nest also offers a range of other options for savers including a sharia-compliant fund and higher risk option.

Nest chief investment officer Mark Fawcett says: “We want to capitalise on growth and rewarded risk no matter where it is in the world and these emerging market mandates give us greater control of our exposure to this important asset class.

“These two new mandates represent an exciting development for Nest and as pure emerging market building blocks they allow us to further refine our approach to managing risk and delivering on our investment objectives by enhancing the global diversification of our portfolios.

“This is our first exposure to alternative indexing and reflects two of Nest’s investment beliefs that both indexed management, where available, is generally more efficient than active management and that integrating valuation considerations into the investment process can enhance our long-term performance.”

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