UK workplace pension fund Nest, which predicts it will become the largest UK scheme by assets in the next few years, has appointed Northern Trust as fund administrator and custodian.
Northern Trust will provide custody and administration-related services for Nest including asset allocation, rebalancing and performance measurement.
Nest is a multi-employer scheme and has grown to become the largest workplace pension scheme in the country with 13 million members. By the end of the decade Nest expects to have around £100 billion assets under management.
Mark Fawcett, CEO of Nest Invest, said: “Nest is at an exciting point in our journey. Within the coming years, we’ll likely be the largest UK pension scheme by both AUM size and membership.”
Fawcett added the fund administrator is “one of our most important contracts”, providing a platform to manage growth across a highly diversified portfolio, which includes the implementation of a private markets programme.
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“We have specific requirements for asset allocation and rebalancing, and Northern Trust’s capability to manage sophisticated strategies is particularly strong. The flexibility they can offer, to evolve the services we need around our future growth, will be crucial.”
James Wright, head of asset owners, Europe, Middle East and Africa, at Northern Trust, added: “Our appointment by Nest underscores Northern Trust’s unwavering commitment to the retirement sector and cements our leadership position in supporting the increasingly sophisticated needs of asset owners in the UK and across the Emea region.”
