Personal Pension  

Nest looks to boost returns with single year gilt funds

The National Employment Savings Trust has launched a tender process as it seeks to boost members’ returns through single year gilt funds.

Nest plans to procure single year maturity gilt funds to add to the existing ‘building block’ of funds that the scheme uses to create its default ‘retirement date funds’.

The gilt funds will be replaced on a rolling basis - for example when the 2016 gilts mature, a 2026 gilt fund will be added.

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The tender process will run until 9 January 2015 with a view to awarding the contract by Spring 2015.

For younger members, the gilt funds will be used in the foundation phase, and in the consolidation phase of the scheme, to provide improved returns relative to cash for members both at the beginning and towards their pension saving.

Mark Fawcett, chief investment officer at Nest, reasserted their commitment to continually refining the investment offering.

“Single year maturity gilt funds will have a role in both the foundation and de-risking phases of our three-staged investment strategy, allowing us to refine how we deliver our risk management approach for members both as they build up their pot and at the stage when they’re preparing to take their money out.

“This procurement comes at an exciting time in the evolution of Nest as we seek to secure better retirement solutions for our members in the changing pensions landscape.”

ruth.gillbe@ft.com