Investment manager BlackRock has partnered with workplace pension scheme Nest.
BlackRock will manage the risk of Nest’s entire investment strategy through its platform ‘Aladdin’.
The platform will allow Nest to monitor more than 3,000 risk factors across fixed income, equities, foreign exchange and private markets, as well as to quantify the financial impact of climate-related risks.
Allowing it to build a more resilient portfolio and enhance its capability to undertake greater risk analysis and evolve its investment strategies across public and private markets.
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Jiwei Dong head of market risk & asset allocation at Nest, commented: “The complexities facing a sophisticated portfolio like Nest’s are significant. It’s crucial we upgrade our services in line with our projected growth to be a £100bn scheme by the end of the decade.
“In the past few years, we’ve expanded our investable universe to include more illiquid assets, while also adopting more complicated public-market investment strategies.
“Aladdin allows us to get a holistic view of the risk profiles of our multi-asset portfolios, and to fully integrate ESG factors within our risk-management process, matching the level of complexity we need.”
Sarah Melvin head of UK at BlackRock, added: “Nest plays a crucial role in supporting over 12 million people in the UK saving for their retirement. We share a joint purpose of helping more and more people experience financial well-being.”