Nest Corporation has appointed fund managers for its ethical and sharia mandates.
The ethical mandate has been awarded to F&C Asset Management and the sharia mandate has been awarded to HSBC Global Asset Management.
Nest’s ethical fund will initially invest in actively managed and screened global equities, as well as some UK government bonds.
The equity portion of Nest’s ethical fund will be invested in the F&C Stewardship International Fund, an actively managed global equity fund.
Nest’s sharia fund will invest solely in the HSBC Life Amanah Pension Fund. 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 $16 billion.
Tim Jones, chief executive at Nest, said: “These latest appointments are excellent additions to Nest’s choice of fund managers.
“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.”
Mark Fawcett, chief investment officer at Nest, said: “There was strong competition for these mandates and we are grateful for the enthusiasm and engagement of fund managers from around the world.
“Both of the appointed fund managers are global experts in these key areas of fund management for Nest and have excellent track records.”
Cristobal Mendez de Vigo, group head of institutional and distribution business development at F&C Asset Management, 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.”
Stuart White, UK institutional director at HSBC Global Asset Management, said: “Today’s announcement demonstrates that Nest is committed to offering a diverse range of investment solutions that will meet the needs of its members.
“By selecting the HSBC Life Amanah Fund 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.”
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