Nest has announced that its assets under management have hit £30bn, with the scheme’s investments having increased by five times since 2019.
Over the past decade, Nest has grown to become the largest UK pension scheme by members and is forecast to reach £100bn of assets under management by the end of the decade.
Nest stated that it had continued to build on its investment strategy by adding private illiquid assets to its portfolio to help drive investment growth amid “turbulent” public markets.
The pension scheme has now invested around £5bn into property, private credit, unlisted infrastructure and private equity, representing more than 15 per cent of its total portfolio.
Nearly half (45 per cent) of all the money invested by Nest in private assets is in the UK.
“To hit £30bn is a fantastic achievement,” said Nest CIO, Liz Fernando. “Twelve years ago, Nest needed an investment framework in place that could rapidly grow as we supported millions of people to save for their pension, many for the first time.
“The award winning, sophisticated investment strategy Nest has in place today is testament to the hard work that’s gone before.
“It’s important that schemes diversify - it’s a challenging time for investors and we’ve needed to find new ways to drive growth.
“We continue to diversify into private assets such as property and private equity. These assets can produce long-term, strong growth and give us access to unique opportunities we can’t reach through public markets.
“We’ve recently invested in some hugely exciting property assets right here in the UK, including the India Buildings in Liverpool and Sanctuary Buildings in London. Both should help boost the pension pots of our members for many years to come.”
LGIM fund manager real assets, Rob Codling, added: “Partnering with Nest over the past 10 years has been a privilege thanks to our shared investment values, Nest’s commitment from the outset to ESG and their continual engagement with us on the mandate.
“Working together we strive to deliver strong long-term property returns for pension scheme members, whilst taking a sustainable approach to improve the built environment and their local communities.
“As we transition to a low carbon world, we recognise that the sector has a pivotal role to play in ensuring we meet global commitments to decarbonisation.
“We believe that this focus on value creation, growth and doing the best for future generations, will see huge benefits for Nest’s 12 million+ members.”
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