Nest seeks emerging market bond fund mandate

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Nest is seeking to add an emerging market bond fund mandate to its “building block” funds.

The scheme is searching for an actively managed pooled fund that blends bonds denominated in local and hard currencies.

The deadline for receiving tenders is October and the contract will be awarded in early 2016.

Nest’s existing building block asset classes are: global developed equities, UK gilts, UK index-linked gilts, low-risk sterling liquidity, global ethical equities, Sharia-compliant equities, Sterling investment grade bonds, UK direct property, hybrid property, ethical corporate bonds, emerging markets, and single year gilts.

Nest chief investment officer Mark Fawcett says: “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.

“Nest is committed to searching out new opportunities for diversification where we see potential benefits for our members.”