On the go: Master trust Nest has appointed Wells Fargo Asset Management to manage a global corporate bond mandate.
With 8m people now members of the scheme, Nest is aiming to invest £500m into global bonds over the next year.
The master trust has been investing in the UK corporate bond market for a number of years, but now wants to take advantage of the “favourable and stable returns” in a global allocation, it stated.
The tender, launched in February, received responses from almost 50 asset managers, from which Wells Fargo was appointed to run an active, segregated account with a currency hedge.
According to Anders Lundgren, Nest’s head of public markets and investment strategy, this mandate will help the scheme to further develop its investment strategy.
“The UK bond market has been a successful performer in our funds over the past few years,” he said.
“We have looked ahead and seen that there are further opportunities globally in this market, which is why we are making this move.”
Mr Lundgren noted that Wells Fargo has managed credit for more than 25 years, which means it has gone through multiple credit cycles – an “experience that is hard to replicate”.
He added: “They have a dedicated environmental, social and governance strategy team to ensure we can continue to generate sustained, long-term returns for our members.
“A segregated mandate gives us greater control over how our member’s money is invested, ensuring we adhere to our strong ESG criteria.”
