Nest buys 10% of IFM Investors
Image: Clicker Happy/Pixabay
Pardon the Interruption
This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
Master trust Nest is buying 10% of the holding company of infrastructure manager IFM Investors, Industry Super Holdings.
IFM is an asset manager set up by Australian superannuation funds. Nest joins 16 other pension fund shareholders, which together manage about £580bn.
Nest and IFM will invest in IFM’s infrastructure, debt, and private equity capabilities with “a focus on new UK investment opportunities that have the potential to provide greater returns”. Nest aims to invest around £5bn through IFM by 2030.
Mark Fawcett,chief executive of Nest Invest, said by investing in IFM, the pension fund is taking a step towards its goal of investing 30% of assets into private markets by 2030, up from currently 17%.
“We’re excited to leverage IFM's expertise and scale to unlock more private market opportunities that can drive stronger and more impactful returns for our members. With £10bn of our AUM already invested in the UK, our goal is to grow this to £20bn, and our partnership with IFM will be instrumental in helping us get there,” said Fawcett.
The chair of Nest, Brendan McCafferty said no investment opportunity should be out of reach for everyday pension savers.
“Our new partnership with IFM demonstrates our ongoing commitment to using every tool in our toolbox to boost our members’ risk-adjusted returns,” he said. “With more than a third of the UK workforce saving with Nest, access to more private investment opportunities will allow us to increase investment into our members' jobs, communities, and essential infrastructure, like roads and bridges.”
IFM chief executive David Neal said: “Nest will support IFM’s further expansion into new investment opportunities and markets across the globe, bringing UK expertise into IFM’s ownership group, as we seek to give pension fund members greater access to global markets that have the potential to deliver risk-adjusted returns for their retirement.”
Commenting on the announcement, Cath Bowtell, IFM chair, called the collaboration “a historical milestone in IFM’s history”, which “has come about because of IFM and Nest’s shared purpose – to invest, protect and grow the long-term retirement savings of working people”.
IFM is an asset manager set up by Australian superannuation funds. Nest joins 16 other pension fund shareholders, which together manage about £580bn.
Nest and IFM will invest in IFM’s infrastructure, debt, and private equity capabilities with “a focus on new UK investment opportunities that have the potential to provide greater returns”. Nest aims to invest around £5bn through IFM by 2030.
Mark Fawcett,chief executive of Nest Invest, said by investing in IFM, the pension fund is taking a step towards its goal of investing 30% of assets into private markets by 2030, up from currently 17%.
“We’re excited to leverage IFM's expertise and scale to unlock more private market opportunities that can drive stronger and more impactful returns for our members. With £10bn of our AUM already invested in the UK, our goal is to grow this to £20bn, and our partnership with IFM will be instrumental in helping us get there,” said Fawcett.
The chair of Nest, Brendan McCafferty said no investment opportunity should be out of reach for everyday pension savers.
“Our new partnership with IFM demonstrates our ongoing commitment to using every tool in our toolbox to boost our members’ risk-adjusted returns,” he said. “With more than a third of the UK workforce saving with Nest, access to more private investment opportunities will allow us to increase investment into our members' jobs, communities, and essential infrastructure, like roads and bridges.”
IFM chief executive David Neal said: “Nest will support IFM’s further expansion into new investment opportunities and markets across the globe, bringing UK expertise into IFM’s ownership group, as we seek to give pension fund members greater access to global markets that have the potential to deliver risk-adjusted returns for their retirement.”
Commenting on the announcement, Cath Bowtell, IFM chair, called the collaboration “a historical milestone in IFM’s history”, which “has come about because of IFM and Nest’s shared purpose – to invest, protect and grow the long-term retirement savings of working people”.
