Nest’s assets under management (AUM) have topped £30bn, with 45 per cent of those investments in private assets allocated particularly to the UK.
The scheme’s investments have grown fivefold since 2019, marking a remarkable milestone. Since its inception 11 years ago, when Nest’s first contribution of £19 was made, the scheme has experienced exponential growth. Nest is now projected to reach £100bn AUM by the end of the next decade.
Nest has allocated a portion of its investments to private (illiquid) assets. The scheme has invested around £5bn in property, private credit, unlisted infrastructure, and private equity. These assets now account for more than 15 per cent of Nest’s total portfolio.
Nest CIO Liz Fernando says: “To hit £30bn is a fantastic achievement. 12 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 says: “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.
“Real estate offers compelling long-term risk adjusted performance when viewed against other asset classes. The range of investment styles within the asset class also provides additional diversification opportunities.
“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.”
