Lombard Odier IM appointed by Nest for global thematic equity mandate

Lombard Odier IM (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.

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 holistiQ sustainability 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.

 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.

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

“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.”

Liz Fernando, CIO at Nest

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.

Jasbir Nizar, UK CEO and Global Head of Business Development at LOIM