The National Employment Savings Trust of the U.K. announced Thursday a £3.5 billion ($4.62 billion) mandate to Wellington Management to manage an emerging markets equity strategy for the £68 billion defined contribution fund.
“With more than 80% of assets held in segregated accounts, including this emerging markets mandate with Wellington, Nest has developed one of the most extensive segregated mandate programs in the U.K. defined contribution market,” said Rachel Farrell, Nest’s director of public and private markets, in a statement. “This gives us greater control over how mandates are implemented and greater confidence in managing governance, sustainability, climate and market-specific risks.”
The mandate comes as Nest aims to refocus its emerging markets equity allocation to be active, fundamental and take a discretionary approach, according to a fund statement.
“The most enduring relationships between asset owners and investment managers are built on trust, alignment and shared purpose,” said Aisling Freiheit, Wellington Management’s head of the Europe, Middle East and Africa, in a statement. “We look forward to working closely with Nest over the years ahead, bringing the full breadth of Wellington’s global platform to support its long-term ambitions and create lasting value for its members.”