UK - The National Employment Savings Trust received more than 150 expressions of interest from asset managers hoping to manage its first five investment funds.
Figures seen by GP's sister publication Professional Pensions show 163 individual expressions of interest were made for the five mandates, with the diversified beta fund attracting the most with 55.
UK fixed interest gilt and UK index-linked gilt funds both drew 22 expressions of interest; the global equity fund received 27; and the low-risk cash management product had 37.
Investment Management Association head of research Jonathan Lipkin said: “The numbers illustrate how seriously the advent of NEST is being taken within the asset management industry.
“The institutional asset management market is highly competitive and you would tend to see many asset managers taking an interest in institutional mandates, particularly here because of the wide range of mandates up for tender.”
From the initial expressions of interest received, 58 asset managers made formal request for proposal submissions for the five mandates, with the diversified beta fund again leading the pack with 21 RFPs. The low-risk cash management brief had 18; global equity received eight; UK fixed interest gilts had five and UK index-linked gilts had six.
“The indication we’ve had from the industry throughout the process is that there are clearly a number of asset managers that would be very interested in supplying services to NEST,” Lipkin added.
The RFP submission contained two parts, an initial screening questionnaire - used to reduce the number of tenders to a shorter list - followed by a more detailed set of questions.
Short listed tenders were invited to a manager presentation on the week of 13 December last year. Submissions for trust’s next fund up for tender– its SRI fund – close tomorrow.
NEST’s first five funds are all passive.
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