State Street to administer UK national pension fund

LONDON Tue Nov 2, 2010 7:17am EDT

LONDON (Reuters) - Britain's new national pension scheme for workers with no retirement provision said on Monday it had appointed State Street Corp to administer its funds and was seeking managers for five investment mandates.

The National Employment Savings Trust (NEST) said on Monday U.S. 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 percent 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 on Wednesday the scheme, could grow to 100 billion pounds in the next 30 years.

(Reporting by Chris Vellacott; Editing by Dan Lalor)