Key Takeaways
- • Nest has opened a market search for an ethical equity manager to run a segregated, custom mandate replacing its pooled approach for the Ethical Fund, per Pensions Expert.
- • The tender seeks managers with "proven investment discipline, integration of ethical criteria, and rigorous active ownership credentials" to deliver a broad-based global equity solution.
- • Nest's Ethical Fund holds approximately £470m, of which around £260m is invested in ethical equities; the scheme manages over £60bn in total assets for more than 13 million UK members.
- • The tender opened 16 February 2026 and closes 13 March 2026, with submissions via Nest's procurement platform.
Summary
Nest has launched a market invitation for an ethical equity manager as it moves to a segregated, custom mandate for its Ethical Fund, according to Pensions Expert. The tender opened on 16 February 2026 and will close on 13 March 2026, with submissions made through Nest's procurement platform.
The scheme said the growth and maturity of its ethical offering now allow it to consider a segregated structure. Nest argues this will support closer alignment with member preferences, enhanced oversight of ethical policy compliance, and greater transparency. The move will also allow the scheme to test the breadth of market offerings and ensure continued value for money.
The appointed manager will be expected to deliver a broad-based global equity solution that integrates Nest's ethical criteria "from first principles" and reports within a segregated structure to meet monitoring and transparency requirements. Managers are being invited to show proven investment discipline, integration of ethical criteria, and rigorous active ownership credentials.
Anders Lundgren, head of public markets at Nest, said the scheme undertook comprehensive member research in 2025 to reassess expectations for the Ethical Fund. Members want their ethical option to invest in companies that can prove a positive contribution to society and the environment while maintaining clear boundaries on unacceptable activities. He said the tender is aimed at finding a partner to deliver this approach at scale.
The Ethical Fund was established in 2012 following the introduction of auto-enrolment. Nest now has more than 13 million UK members and manages over £60bn in assets, with around £470m allocated to the Ethical Fund, of which approximately £260m is invested in ethical equities.
The scheme said the growth and maturity of its ethical offering now allow it to consider a segregated structure. Nest argues this will support closer alignment with member preferences, enhanced oversight of ethical policy compliance, and greater transparency. The move will also allow the scheme to test the breadth of market offerings and ensure continued value for money.
The appointed manager will be expected to deliver a broad-based global equity solution that integrates Nest's ethical criteria "from first principles" and reports within a segregated structure to meet monitoring and transparency requirements. Managers are being invited to show proven investment discipline, integration of ethical criteria, and rigorous active ownership credentials.
Anders Lundgren, head of public markets at Nest, said the scheme undertook comprehensive member research in 2025 to reassess expectations for the Ethical Fund. Members want their ethical option to invest in companies that can prove a positive contribution to society and the environment while maintaining clear boundaries on unacceptable activities. He said the tender is aimed at finding a partner to deliver this approach at scale.
The Ethical Fund was established in 2012 following the introduction of auto-enrolment. Nest now has more than 13 million UK members and manages over £60bn in assets, with around £470m allocated to the Ethical Fund, of which approximately £260m is invested in ethical equities.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.