Episode 237 – Global Fiduciary Leaders with Elizabeth Fernando



Host Chris Battaglia interviews Elizabeth Fernando, CIO of NEST. The two discuss the history and growth of NEST, which was established in 2010 to address the lack of workplace pensions and the need for affordable retirement savings.

The podcast was recorded ahead of the Global Fiduciary Symposium which took place from November 11th to 14th in Tokyo, Japan.

Key Notes:

  • NEST was created following the 2008 Pensions Act which introduced auto-enrollment to ensure every employer in the UK offers a workplace pension.
  • The organization now manages over £43 billion in assets and serves more than 13 million members, including workers from the gig economy and self-employed individuals.
  • The podcast explores the possibility of introducing compulsory pension contributions, like Australia’s superannuation system, but notes the UK’s more cautious approach to enrollment.
  • NEST uses a sophisticated governance structure with multiple layers of oversight to ensure effective decision-making and stakeholder involvement.
  • The organization focuses on long-term growth in private markets, aligning with asset managers who share similar goals, avoiding large buyouts, and steering clear of performance fees.
  • Elizabeth also discusses NEST’s approach to impact investing, prioritizing responsible, sustainable investments that avoid harmful sectors and reflects on the lessons NEST can learn from global pension systems, particularly in Japan.