Global wealth and asset manager Lombard Odier Investment Managers (LOIM) announced today that it has been selected by UK workplace pension fund Nest to manage a global thematic equities investment mandate targeting a series of climate, environmental and social themes.

According to Nest, the pension fund aims to invest £5 billion in the LOIM-managed strategy by 2030.

Ritesh Bamania, Head of UK and Ireland Institutional Sales at LOIM, said:

“Nest is recognised for its commitment to positive stakeholder outcomes through its investment strategies and thought leadership in sustainability. We are delighted to partner with Nest on a mandate, based on our Planetary Transition strategy that recognises the potential of sustainability trends driving returns in active equities.”

The new actively managed strategy will focus on three key themes, including climate change mitigation and adaptation, natural capital and social trends for a thriving society.

According to LOIM, the new strategy will the firm’s HolistIQ sustainability research and active equities investment teams to identify opportunities across developed and emerging markets that are aligned to these themes. LOIM launched the holistiQ Investment Partners platform last year, in partnership with sustainability-focused system designer and developer Systemiq, to capture economic transition investment opportunities, with a focus on the transformation of key economic systems such as energy, land and oceans, and materials.

Jasbir Nizar, UK CEO and Global Head of Business Development at LOIM, said:

“We believe that system changes resulting from the environmental transition will result in profound changes in business models, in value chains and in the organisation of our economy. LOIM has invested significantly in resources and partnerships to create cutting-edge roadmap research that translate these system changes into investment strategy, working seamlessly with our well-established active equities team.”

According to Nest, the mandate was awarded following a rigorous selection process. Liz Fernando, CIO at Nest, said:

““Lombard Odier was the stand-out candidate in the procurement process, demonstrating they can take a dynamic approach to portfolio construction. They have robust sustainability research capabilities, accompanied with a strong investment process and governance, that gives us every confidence this will be a hugely successful partnership.”