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Nest’s CIO, Elizabeth Fernando, has been featured in the Financial Times

October’s gilt market chaos has brought attention to liability-driven investing, a widely used strategy among defined benefit pension schemes. The impact of this is the acceleration of the rethink among pension funds about the so-called 60/40 allocation of assets between equities and bonds, which has performed poorly during this year’s sell-off.

Nest is held as an example of the defined contribution schemes which is putting money into private assets. ‘We think there is room for us to take on more exposure to illiquid assets, particularly for younger members,’ says Deputy Chief Investment Officer, Liz Fernando. ‘They’re particularly well-suited to taking on liquidity risk and being rewarded for it.’

Read the full article via the Financial Times online

Published 1 August 2023