State Street Corporation is to run Nest’s fund administration service.
Nest plans to advertise for fund managers later this week to run Nest’s different investment mandates.
Nest chief executive Tim Jones says: “It was a strong competition, and we are now well placed to deliver a first-rate service at low cost to members.”
State Street has £12.8tn under custody and administration and over £1tr is assets under management.
The 10 year contract is in two stages with the first having started on October 25 and ending in late November to align it with the decision on whether to continue using Tata to administer Nest. Nest Corporation says it is confident that the Tata is the right supplier with Nest’s trustees and the Government to make the final decision later this month.
The adverts for fund managers for the national pension scheme will seek managers in global equities (developed) funds, UK fixed interest funds, Index linked fixed interest funds, cash funds and diversified beta funds.