Nest adds emerging market debt to members pots

Nest adds emerging market debt to members pots

The National Employment Savings Trusts has awarded its emerging market bond fund mandate to Amundi Asset Management.

This fund is actively managed and blends bonds denominated in both local and hard currencies, predominantly US Dollars, according to Nest.

The organisation said the new mandate will be added to the existing ‘building bloc’ funds that underpin the scheme’s default Nest Retirement Date funds and some of its alternative fund choice.

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Mark Fawcett, chief investment officer of Nest, said emerging market debt will be used to refine the way it diversifies members’ portfolios.

He said emerging markets represent a diverse and opportunity-rich investment universe.

Mr Fawcett said: “This move will give Nest members access to new opportunities for investment growth and allow us to spread risk across a wider range of global assets.

“Our members are investing for the long term and we make decisions on how to diversify their portfolios against a backdrop of long-term market developments and valuation outlooks. We think emerging market debt is becoming under-valued.

“We want a fund in our tool box that will allow us to take advantage of the opportunities as they emerge.”

Scott Gallacher, director of Leicester-based IFA Rowley Turton, said: “Having access to the entire investment market is key for any investment manager, especially if they are managing a pot of money for the long term.”

He added that this was necessary for diversification and to assess all the opportunities available.

“It provides the flexibility to be in or out of particular sectors when you need.”