Nest to invest in commercial property

The National Employment Savings Trust (Nest) is to add commercial property to its investment strategy.

The organisation has awarded Legal and General Investment Management (LGIM) two real estate mandates.

The mandates are intended to provide access to an asset class capable of delivering long-term and sustainable growth for Nest pension scheme members.

The two unit-linked, real estate pension funds are:

  • The Managed Property Fund (UK), which invests directly in commercial property in the UK.
  • The Global Real Estate Equity Index Fund, which invests in the shares of real estate organisations around the world.

The new funds will make up a sizeable portion of the Nest Retirement Date Funds, as well as the Nest Higher Risk Fund and Nest Ethical Fund options.

Mark Fawcett (pictured), chief investment officer at Nest, said: “We’re always searching for cost-efficient opportunities to access rewarded risk for our members.”