Nest has opened a market search for an ethical equity manager as it looks to move to a segregated, custom mandate for its Ethical Fund.
The scheme is inviting managers with “proven investment discipline, integration of ethical criteria, and rigorous active ownership credentials” to propose diversified global equity solutions.
Nest said the growth and maturity of its ethical offering now allow it to consider a segregated mandate, supporting closer alignment with member preferences, enhanced oversight of ethical policy compliance and greater transparency. The move will also enable 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 to report within a segregated structure to meet monitoring and transparency requirements.
Anders Lundgren, head of public markets at Nest, said: “In 2025, we undertook comprehensive member research to reassess expectations for our Ethical Fund. Our members told us they want their ethical option to invest in companies that can prove their positive contribution to society and the environment, while maintaining clear boundaries on what’s not acceptable.
“This market invitation is about finding a partner to deliver this approach at scale while reflecting our commitment to always review our investment arrangements and act in the best interests of our members.”
Nest’s Ethical Fund was established in 2012 following the introduction of auto-enrolment. The scheme now has more than 13 million UK members and manages over £60bn in assets, with around £470m allocated to the Ethical Fund. Of this, approximately £260m is invested in ethical equities.
The tender process opened on 16 February 2026 and will close on 13 March 2026, and submissions can be made via Nest’s procurement platform.
