new national pension scheme for workers with no retirement provision yesterday said it had appointed State Street to administer its funds and was seeking managers for five investment mandates.
The National Employment Savings Trust (NEST) said US group State Street will provide administration and custody services for 10 years.
Boston-based State Street is one of the world’s largest money managers for institutions and earns about 38 per cent of its revenues outside the United States.
NEST also outlined five funds to invest in equities, bonds and cash as well as a diversified multi-asset vehicle, for which it is looking for fund managers.
“NEST Corporation this week expects to advertise to appoint fund managers for a range of investment mandates,” it said.
The defined contribution pension scheme is a major strand of pension reforms aimed at tackling a lack of adequate pension savings and could manage pension accounts for up to eight million workers.
Its chief executive, Tim Jones, said last Wednesday the scheme, could grow to £100bn in the next 30 years.
The arrival of the more flexible NEST scheme comes as industry experts warn that the state pension age will need to rise further, partly because people are living longer.