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15 November 2016

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NEST invites tenders for a global high yield bond fund to further boost and diversify NEST members’ pots

NEST is today issuing a tender response document for an active global high yield bond fund. This 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 not be offering a stand-alone high yield fund choice.

The scheme is seeking a manager that has a high quality repeatable investment process and a robust risk management framework and considers environmental, social and governance factors.

Mark Fawcett, NEST chief investment officer, said:

‘High yield bonds can offer attractive returns in an otherwise low yielding fixed income environment. Procuring a high yield bond fund will also further diversify our members’ portfolios. By including this asset class in our building block mandates we will be joining the growing number of institutional investors holding high yield.’