National Employment Savings Trust, London, is searching for a manager to run an active global high-yield bond fund.
The new allocation will be added to the existing so-called building block funds that underpin the national defined contribution plan’s default funds. NEST, which has £1 billion ($1.26 billion) in assets, has almost 50 target-date funds in its default fund, targeting expected retirement dates of participants.
Global high yield will also be an alternative fund choice, but it will not be offered as a stand-alone choice, a NEST news release said.
Executives want a manager with a high-quality, repeatable investment process and a robust risk management framework. Managers must also consider environmental, social and governance factors.
“High-yield bonds can offer attractive returns in an otherwise low-yielding fixed-income environment,” Mark Fawcett, NEST chief investment officer, said in the news release. “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.”
A NEST spokesman said a decision is expected to be made in the first quarter of next year. The deadline for proposals and how any allocations will be funded could not be learned by press time.
Further details are available on procurement website Tenders Electronic Daily.
