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Nest puts commercial property at centre of default investment strategy


The National Employment Savings Trust has handed two real estate investment mandates to Legal & General Investment Management.

Nest says the new mandates will represent a “sizeable portion” of the Nest Retirement Date funds, the default investment option for scheme members.

A spokesman says between 15 per cent and 20 per cent of the default funds will be invested in commercial property through the L&G mandates.

The property mandates will also be incorporated in Nest’s Higher Risk and Ethical Investment fund options.

Nest chief investment officer Mark Fawcett says: “Legal & General was chosen because it delivers on our demanding requirements for excellence in investment processes and philosophy, high quality risk management and a comprehensive integration of environmental, social and governance factors.”

Hargreaves Lansdown head of financial planning Danny Cox says: “I can see why Nest wants to include property as part of its long-term investment strategy and L&G is a tried and tested property fund manager.

“However an allocation of between 15 and 20 per cent sounds heavy given where we are in the property cycle.” 


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