14 March 2016
Back to news homeNEST has awarded its emerging market bond fund mandate to Amundi Asset Management. The fund is actively managed and blends bonds denominated in both local and hard currencies, predominantly US Dollars.
The new mandate 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. NEST will use emerging market debt to refine the way it diversifies members’ portfolios.
Mark Fawcett, NEST chief investment officer, said:
‘Emerging markets represent a diverse and opportunity-rich investment universe. This move will give NEST members access to new opportunities for investment growth and allow us to spread risk across a wider range of global assets.
‘Our members are investing for the long term and we make decisions on how to diversify their portfolios against a backdrop of long-term market developments and valuation outlooks. We think emerging market debt is becoming under-valued. We want a fund in our tool box that will allow us to take advantage of the opportunities as they emerge.
‘Amundi has the experience and expertise to both provide NEST members with access to the opportunities and navigate the risks. It has a strong track record managing emerging market debt since 1999, investing in local, sovereign and corporate debt with good performance history. Amundi also shares NEST’s values, with responsible investment becoming one of the cornerstones of its development strategy, making this choice right for NEST and our members.’
Laurent Guillet, CEO of Amundi Asset Management, London Branch said:
‘Amundi is delighted to be able to count NEST as one of our long-term partners. NEST plays a key role in the UK government’s endeavour to make workplace pensions simpler, more accessible and more flexible. We are proud to support NEST’s continued effort to provide high-quality, sophisticated and low-cost workplace pension schemes to the wider UK market’