LOIM appointed by Nest for global thematic equity mandate

Nest estimates to invest £5 billion by 2030

Lombard Odier Investment Managers (‘LOIM’) has been appointed by Nest to manage a mandate that invests in global thematic equities, consistent with the transition towards a net-zero economy, and which seeks to deliver sustainable outcomes and robust investment returns for Nest’s members.¹

Nest is the largest workplace pension scheme in the UK, currently representing a third of the UK workforce with £36bn in assets under management. The mandate was awarded to LOIM following a rigorous selection process, in line with Nest’s pursuit of best-in-class partners across the asset management industry to support its evolving suite of listed equity funds.

The actively managed strategy will focus on three key themes: climate change mitigation and adaptation, natural capital and social trends for a thriving society. The strategy will leverage the expertise of LOIM’s holistiQ²sustainability research and active equities investment teams, to identify opportunities across developed and emerging markets that are aligned to these themes, and which are capable of delivering progress on the net zero transition while seeking attractive risk-adjusted future performance for members.

Nest expects to invest £5bn in the LOIM-managed strategy by 2030.

Ritesh Bamania, Head of UK and Ireland Institutional Sales at LOIM, said:

“Nest is recognised for its commitment to positive stakeholder outcomes through its investment strategies and thought leadership in sustainability. We are delighted to partner with Nest on a mandate, based on our Planetary Transition strategy that recognises the potential of sustainability trends driving returns in active equities. The UK market is leading with innovation in transition and net zero led investing, and we at LOIM aim to continue delivering strong ideas and solutions in this space.”

Liz Fernando, CIO at Nest, commented:

“Lombard Odier was the stand-out candidate in the procurement process, demonstrating they can take a dynamic approach to portfolio construction. They have robust sustainability research capabilities, accompanied with a strong investment process and governance, that gives us every confidence this will be a hugely successful partnership.”

Jasbir Nizar, (pictured), UK CEO and Global Head of Business Development at LOIM, said:

“We believe that system changes resulting from the environmental transition will result in profound changes in business models, in value chains and in the organisation of our economy. LOIM has invested significantly in resources and partnerships to create cutting-edge roadmap research that translate these system changes into investment strategy, working seamlessly with our well-established active equities team.

“We are delighted that Nest has chosen to partner with LOIM, in recognition of our expertise and credentials in sustainable investing. We look forward to helping Nest members navigate risks and identify the investment opportunities that are emerging from this transition.”

Sources

1 Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document.

2 holistiQ Investment Partners (“holistiQ”) is a trading name of the Lombard Odier Investment Managers group (“LOIM”) and is not a legal partnership or other separate legal entity. Any dealings in respect of holistiQ shall be carried out solely through LOIM regulated entities and their authorised officers.

About Lombard Odier IM

At Lombard Odier Investment Managers, we are rethinkers with one goal in mind. To provide our clients with outstanding investment solutions that meet their needs for the long term and evolve to thrive in the challenging world in which we all live.

We are focused investment specialists, seeking out investment opportunities that lie on less trodden paths, where our diverse and talented team can add genuine, persistent, value to our clients. We constantly rethink what we know and do, innovating to create new strategies and develop new ways of investing.

We believe that the next economic revolution has already begun and that sustainability will be a major driver of returns for the foreseeable future and beyond. For those with the skills to adapt to this new reality, sustainability will create new sources of alpha, open up new investment opportunities and lead to enhanced return and reduced portfolio risk.

Our team of sustainability experts combine sophisticated data sources, academic rigour and technical innovation to create leading-edge, science-based tools that provide unique insights that are available to all our investment professionals.

These unique insights are reflected directly in our growing range of dedicated sustainable investment strategies that are aligned to this core belief - That our economic model must move from being Wasteful, Idle, Lopsided and Dirty to become Circular, Lean, Inclusive and Clean. We call this The CLIC® Economy.

With more than 180 investment professionals, we are a global business with a network of 13 offices across Europe, Asia and North America and have assets under management of 62 billion CHF (as at 31 December 2023).

Contact

Celeste Herriger

Head of PR, Lombard Odier Investment Managers

Tel.: +44 20 3206 6167

c.herriger@lombardodier.com

About Nest

Nest was set up by the government to ensure every UK employer could offer a workplace pension to their employees. Since then, it’s grown to become the largest workplace pension scheme in the country with more than 12 million members. One in three of the UK working population currently have a retirement fund with Nest.
As a not-for-profit pension scheme, Nest doesn’t answer to shareholders. It’s set up to serve its customers’ interests and aims to help millions of people enjoy a better retirement. Nest’s members benefit from an award-winning investment strategy and one of the most diversified DC portfolios in the UK. By the end of the decade Nest is expected to have around £100bn assets under management.

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