LOIM wins £5 billion sustainability equities mandate from UK pension fund Nest

Lombard Odier Investment Managers was appointed by UK workplace pension fund Nest to manage a global thematic equities mandate, with Nest planning to invest £5 billion in the LOIM-managed strategy by 2030. The actively managed strategy targets climate mitigation, natural capital, and social themes, signalling growing institutional demand for sustainability-driven equity investing relevant to Indian asset managers and ESG funds.

Lombard Odier Investment Managers (LOIM) announced it was appointed by UK workplace pension fund Nest to manage a global thematic equities mandate targeting climate, environmental, and social schemes. Nest plans to invest £5 billion in the LOIM-managed strategy by 2030. The actively managed strategy, based on LOIM's Planetary Transition framework, focuses on three themes: climate change mitigation and adaptation, natural capital, and social trends for a thriving society, identifying opportunities across developed and emerging markets aligned with these themes.

Nest, one of the UK's largest workplace pension funds, is directly affected by allocating £5 billion to the strategy by 2030, reflecting its commitment to positive stakeholder outcomes through its investment approach. LOIM's sustainability research and active equities teams will manage the mandate. The appointment affects beneficiaries of the Nest pension scheme and signals to asset managers, institutional investors, and pension funds that sustainability themes are increasingly central to active equity portfolio construction and procurement decisions.

Asset managers and pension funds should monitor how the LOIM-Nest mandate performs against its thesis that sustainability trends drive returns in active equities. Nest stated Lombard Odier was the stand-out applicant following a rigorous selection process, citing dynamic portfolio construction, robust investment process, and governance. Institutional investors evaluating thematic sustainability strategies should track the rollout toward the £5 billion target by 2030 and the strategy's coverage across developed and emerging markets.

Key figure — Mandate size: £5 billion to be invested by 2030