NEST adds ethically screened corporate bonds to its Ethical Fund

NEST is pleased to announce it has added an ethically screened corporate bond building block to the NEST Ethical Fund.

This new addition, provided by F&C Investments, allows NEST to provide the benefits of greater diversification and more sophisticated risk management while retaining the ethical screens and best practice that have characterised the NEST Ethical Fund to date.

Mark Fawcett, chief investment officer, NEST said:

‘We are pleased to be able to carry the sophistication of our approach to default investing to NEST’s other fund choices. The addition of ethically screened corporate bonds to NEST’s Ethical Fund shows our commitment to delivering a high quality investment experience across our fund range, whilst keeping charges consistently low.

‘Corporate debt is an important asset class for long term savers. F&C Investments’ fixed income team have a sound investment philosophy and approach that we expect will deliver strong and consistent performance, coupled with best in class governance around the formation and execution of ethical investment policies.’

Vicki Bakhshi, head of governance & sustainable investment at F&C Investments said:

‘As a market-leading provider in ethical and sustainable funds, F&C is pleased to have been appointed by NEST to provide a further ethical solution to investors, as they continue to put their investments under great scrutiny.

The F&C Ethical Bond Fund, which is a core part of F&C’s ethical and sustainable fund range, blends the potential of active fund management with a robust and rigorous approach to ethical screening and engagement.’

Notes to editors:

The F&C Ethical Bond Fund aims to maximise returns through investment primarily in fixed interest securities of ethically screened companies. A rigorous management process and widely diversified portfolio seek to control excessive credit risk. The fund invests primarily in investment grade corporate bonds. F&C’s investment process blends a top down assessment of the macro-economic environment with detailed analysis of individual companies.

In addition to F&C corporate bonds, the NEST Ethical Fund also includes the F&C Stewardship International Fund; Legal & General Investment Management’s Managed Property Fund and State Street’s Index Linked Gilts Fund.

This is the 11th underlying building block fund which has been added to NEST’s investment platform.

For more information on NEST’s investment approach you can download our guide Looking after members’ money (PDF)

For more information about our underlying fund managers and exposure to each please see our fund factsheets

Advisers looking for more information about NEST and its investment strategy can also go to NEST’s dedicated adviser site: www.nestpensions.org.uk/NESTforadvisers

NEST’s investment approach - key features:

• Unique default option comprises of 47 single-year target date funds, risk managed for each year of retirement
• Focused fund range including Ethical, Sharia, Lower Growth and Higher Risk options with the same low charge as the default
• High quality risk management driven by cutting-edge investment techniques, high quality data and analysis and transparent governance  
• Cost-efficient delivery - bespoke solutions powered by leading global fund managers
• Clear investment communications designed with and for members, employers and their advisers.