10.31.2023

Nest Selects BlackRock’s Aladdin for Risk Management

10.31.2023
Banks

Nest, the UK’s largest workplace pension scheme by members, and BlackRock, the world’s largest asset manager, announced a new partnership where Nest will leverage BlackRock Aladdin to manage the risk of its entire investment strategy on a single platform.

Managing key investment risks within Nest’s portfolio is a crucial part of its long-term plan to continue to evolve its investment strategies across both public and private markets.

The Aladdin platform, inclusive of Aladdin Climate, allows Nest to monitor more than 3,000 risk factors across fixed income, equity, foreign exchange, and private markets, and quantify the financial impact of climate-related risks. This will help Nest build a more resilient portfolio and enhance its capability to undertake greater and more sophisticated risk analysis.

Discussing the procurement, Jiwei Dong, Nest’s Head of Market Risk & Asset Allocation, said:

“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.

“Just 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 on risk profiles of our multi-asset portfolios, and fully integrate ESG factors within our risk management process, matching the level of complexity we need.”

Speaking about the expanding partnership, Sarah Melvin, Head of UK, BlackRock, said:

“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, so are delighted to be deepening our long-standing partnership. We are proud to have been chosen by Nest to provide enhanced analytics through Aladdin’s Investment Risk and Aladdin Climate platforms, which will in turn help them to serve their members better.”

Source: Nest

Related articles

  1. This adds $11bn in hedge funds, private credit & commodities to the asset management platform.

  2. They will roll out a comprehensive, end-to-end order & processing solution for retail & institutional funds.

  3. The client base has increased by nearly 17% from year-end 2023 to the end of the first quarter of 2025.

  4. This is Galaxy's first underwritten public offering of its common stock as a listed company on Nasdaq.

  5. finaXai will explore integrating machine learning and large language models into asset servicing workflows.