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Nest picks mandate managers

Fawcett: ’Diverse set’

The National Employment Savings Trust has chosen UBS, State Street Global Investors and BlackRock to manage the five investment mandates to be used by the scheme’s default fund.

The passive global equities mandate has been handed to the UBS life world equity tracker, a fund which tracks the FTSE All-World Developed index.

State Street will take on the passive UK gilts and passive UK index-linked gilts mandates. Passive UK gilts will be managed by the company’s UK conventional gilts all stocks index fund which tracks the performance of the FTSE Actuaries UK Gilts All Stocks index.

Passive UK index-linked gilts will be run by the State Street UK index-linked gilts over 5 years index fund, which tracks the performance of the FTSE Actuaries UK Index-Linked Gilts over 5 year index.

BlackRock will manage the sterling cash and diversified beta mandates through its aquila cash fund and aquila life market advantages fund.
The cash fund aims to maximise current income through the maintenance of a portfolio of short-term sterling money market instruments. The diversified beta fund will invest in asset classes through BlackRock’s pooled index funds.

Nest chief investment officer Mark Fawcett says: “The infrastructure we are putting in place will give our members access to a diverse set of global asset classes, through Nest-constructed yearly target-date funds, which will help us to manage investment risks in a way that is appropriate to them.”

Hargreaves Lansdown pensions analyst Laith Khalaf says: “The default fund is not going to set the world alight but it is not meant to.

“Obviously, the emphasis is on passive funds, and the managers that Nest has have an existing and established presence in the passive management sector.”


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