UK - The National Employment Savings Trust has appointed F&C Asset Management and HSBC Global Asset Management to manage its ethical and Sharia funds, respectively, it announced today.
The appointments complete NEST Corporation's line up of managers to manage funds for the nationwide pension scheme to be rolled out later this year.
NEST said F&C Asset Management was given the mandate for the ethical fund following extensive research. The fund will initially invest in actively managed and screened global equities and some UK government bonds.
This fund of funds will feature a dynamic approach to risk management and asset allocation to deliver a risk/return glide path for the whole of a member's savings career.
The equity portion of the ethical fund will be invested in the F&C Stewardship International Fund, an actively managed global equity fund.
F&C group head of institutional and distribution business development Cristobal Mendez de Vigo said: "NEST is a landmark initiative that will transform the pensions landscape in the UK. F&C is excited to be working with NEST to bring our expertise in ethical and sustainable investing to its members."
The Sharia fund - managed by HSBC Global Asset Management - will invest solely in the HSBC Life Amanah Pension Fund, which passively tracks the Dow Jones Islamic Titans 100 index, a global equity index screened so as to be in accordance with Sharia principles.
HSBC Amanah was established in 1998 as the global Islamic financial services division of the HSBC Group. It serves more than 700,000 customers across the world and has assets under management of more than $16bn.
HSBC Amanah's products and operations are overseen by Regional Sharia Committees and a Global Sharia Board. These comprise of Sharia Law scholars with an in-depth understanding of financial products.
HSBC Global Asset Management UK institutional director Stuart White said: "By selecting the HSBC Life Amanah Fund, managed by HSBC Global Asset Management, members of NEST will have access to a fund that is compliant with Sharia principles and features a proven investment process and track record, along with robust risk management."
NEST Corporation chief executive Tim Jones (pictured) added: "These latest appointments are excellent additions to NEST's choice of fund managers. I am delighted that all of our fund managers have such depth of experience in their particular fields. Both of these funds should provide an excellent foundation for helping our members who want to make a choice based on ethical or faith grounds save for retirement."
This comes after NEST announced its statement of investment principles, outlining a three-stage approach to the default fund - retirement date funds.
NEST Corporation has already appointed State Street Global Advisors, UBS Global Asset Management and BlackRock to run five mandates for its default fund.
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