NEST Corp., London, plans to issue RFPs later this week for five investment funds that will be used as the component parts to create the new U.K. defined contribution system’s custom default target-date funds, said spokeswoman Heather Tilston.
Searches are planned for passive funds in global developed markets equities; U.K. government bonds; U.K. inflation-linked government bonds; cash; and a diversified beta fund that has as low a correlation to the other four funds as possible.
Details on the default target-date strategy for the National Employment Savings Trust, London, will be released in December, Ms. Tilston said.
She said that the five funds being sought will not become options in the system. Details on options will also be announced in December, she said.
NEST Corp. will oversee administration and management of the National Employment Savings Trust, a nationwide DC plan aimed at middle- to low-income workers who do not already have an employment-based retirement plan. The new retirement plan is expected to begin to be rolled out in spring 2011.