Nest appoints Northern Trust as Fund Administrator and Custodian

Northern Trust has been appointed by Nest as the new fund administrator, helping the pension scheme coordinate its investments across its diversified portfolio.

Through the newly awarded contract, Northern Trust will provide key services for Nest’s investment strategy, including custody, asset allocation and rebalancing, and performance measurement.

The new partnership will oversee substantial growth in Nest, with the scheme forecast to pass £100bn AUM in 2030. This contract is therefore of significant importance to the continued success of Nest.

Statement from Mark Fawcett, CEO of Nest Invest:

“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. We’ve needed to consider how we manage that growth to ensure we continue delivering a world-class service for our 13 million members.

“The fund administrator is one of our most important contracts. It provides the platform to manage our growth across our highly diversified portfolio, including enhancing the member journey across our range of funds as we implement our private markets program.

“Northern Trust really impressed us in what was a competitive procurement. We have specific requirements for asset allocation and rebalancing, and their 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.”

Statement from Ian Hamilton, Head of Asset Owners, UK at Northern Trust:

“We are proud that Nest have selected Northern Trust as their asset servicing partner to support their evolving needs as they deliver on their long-term strategic growth strategy. This mandate is testament to Northern Trust’s track record in supporting complex asset owners deliver transformative change and we are thrilled to partner with the UK’s largest Defined Contribution Master Trust and a leading innovator in the pension sector.”

Statement from James Wright, Head of Asset Owners, Europe, Middle East and Africa (EMEA) at Northern Trust:

“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. A leading asset servicing provider to pension schemes around the globe, we are delighted to be partnering with Nest at an important inflection point in the evolution of their business.”