Nest launches new mandate with Amundi to assist with porfolio management

Nest has confirmed a new mandate with asset manager Amundi to help make the managing of its portfolio more efficient.

Amundi will be providing Nest access to derivative contracts for two main objectives in the scheme’s portfolio, namely to rebalance Nest’s portfolio to target exposure when it’s proving difficult to do through equity and credit markets, and to reduce drag on performance by equitising cash set aside for private market deployment.

Nest’s interest in derivatives came from their ability to “quickly rebalance portfolios” in the wake of the market volatility resulting from the pandemic, noting that derivatives could allow the scheme to quickly reach target exposures and ensure their members benefit when markets recover.

This announcement comes in the wake of Nest’s existing partnership with Amundi, as the asset manager was chosen to manage it active emerging market debt portfolio in 2016 and for a private credit mandate in 2019.

Nest have not committed a fixed amount of money to the mandate, instead pledging to use derivatives in specific circumstances to assist in the continued building of an investment strategy suitable for all seasons.

Nest head of public markets and real estate, Anders Lundgren, commented: “We’re pleased to enhance our existing partnership with Amundi. They continue to demonstrate a strong handling on both managing ESG risks and our credit exposure, both crucial elements as Nest grows in size and influence.

“This mandate can also put any capital we have saved up for our private market investments to good use. We want to avoid any drag on performance and keep our members’ money busy to help boost their pension pots.”

Amundi UK CEO, Philippe d’Orgeval, added: “We are pleased to continue growing our partnership with Nest, by supporting their members with solutions to protect and grow their retirement savings.

"This unique mandate will help reduce various risks, make portfolio management more efficient, and is a useful way to gain exposure to various assets and investment opportunities as we enter a challenging investment environment.”

    Share Story:

Recent Stories


Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth.

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video inteviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today

Multi asset credit
Pensions Age editor, Laura Blows, discusses multi asset credit with Royal London Asset Management senior fund manager, Khuram Sharih
Pensions Age podcast: buy-outs and buy-ins for member and employer nominated trustees
Pitfalls and good practice when approaching insurers with Pensions Age editor, Laura Blows, Martin Parker (Just Group) and Akash Rooprai (ITS)