We use cookies to support features like login and allow trusted media partners to analyse aggregated site usage.
To dismiss this message and allow cookies to be used, please click "Continue".


Twitter board

Follow us
  • @NewtonIM Sustainable Bond Investing Newton’s Scott Freedman and Victoria Barron review some of the developments in… https://t.co/6woi4Dfqjc12 hours ago
  • RT @portfolio_inst: @InvescoUKinsti whitepaper: Sustainable factor investing ''The advent of what might be called sustainable factor invest…2 days ago
  • @InvescoUKinsti whitepaper: Sustainable factor investing ''The advent of what might be called sustainable factor in… https://t.co/rPdm94o9yU2 days ago
  • Old Money: Forget millennial's, pension funds looking for growth should be targeting cash-rich retirees.… https://t.co/TfPklO4QPr2 days ago
  • RT @MSCI_Cudworth: MSCI in the News. EM governance: Breaking through. Michael Cheng discusses the influence of corporate #governance in #…2 days ago
  • Our cover story: CDC: A step into the unknown. Is CDC an unnecessary policy change when effort would be better spen… https://t.co/QGHfTkiPP27 days ago
  • Newton – Trend Setting: The Year Ahead in ESG ''We have seen notable client interest for sustainable products over… https://t.co/OoXVLJ1BMp7 days ago
  • Our Latest ESG feature: EM governance: Breaking through. ''Those calling for better governance in emerging markets… https://t.co/qk0vJpfpJL10 days ago
  • The February Issue is available online now! Our Cover Story - CDC: A Step in the wrong direction. Read more here:… https://t.co/8xwHL9Nd2z10 days ago
  • RT @AonRetirementUK: What do we expect to see in the #ESG market over the next 12 months? Read the results of the @portfolio_inst panel of…10 days ago
  • RT @PensionsSion: What are the pros and cons of building a global #equity portfolio? Find out by reading the @portfolio_inst Global Equitie…16 days ago
  • RT @AonRetirementUK: Outcomes delivered by employer pension schemes now depend more than ever on levels of engagement. Companies must creat…17 days ago
  • Our latest Roundtable: Cash-Flow Driven Investing is now live! Read more here: https://t.co/zBy7Gbiud9 https://t.co/KJTIgVssmG17 days ago
  • RT @BNPPAM_COM: 2017 was one of the most active hurricane seasons on record, causing up to USD 475 billion worth of damage. What are the in…29 days ago
  • RT @PensionsTony: At the Aon London #pensions conference. About to start my workshop on how well #DC schemes are meeting the needs of #memb…29 days ago
  • Andrew Wauchope talks to Mark Dunne about charities and their pension schemes, the secret of being a good trustee a… https://t.co/xcdcxs61QL29 days ago
  • Enter the Dragon : China’s inclusion in the @MSCI_Inc Emerging Market index has caused little excitement, but, as L… https://t.co/oy0EdSI6A831 days ago
  • The @InvescoUKinsti whitepaper: Responsible investing and active ownership. Invesco’s Bonnie Saynay and Henning St… https://t.co/E3Gdh9eDSM36 days ago
  • Charlotte Moore looks at the reaction of financial markets to Brexit has already changed the shape of the relations… https://t.co/6KH9jnWTtq36 days ago
  • RT @AonRetirementUK: Want to know more about the benefits of factor-based investing for your DB pension scheme? Aon’s next Investment Break…37 days ago


Driving value from complexity: Mark Hedges

Driving value from complexity: Mark Hedges

Interview by Sebastian Cheek
Wednesday 4th January 2017

The £4.8bn Nationwide Pension Fund has been investing in alternative assets for more than a decade. Chief investment officer, Mark Hedges, talks to Sebastian Cheek about making the most out of private markets and how to pick managers, as well as his approach to managing scheme liabilities.

Driving value from complexity: Mark Hedges

"We try to find opportunities that are maybe a bit more complex than the norm because we think illiquidity and complexity can add value."

Mark Hedges

Can you give a brief outline of the schemes you manage money for?

The main Nationwide Pension Fund is about £4.8bn to £4.9bn at the moment, but we also have a smaller scheme, the Cheshire and Derbyshire (C&D) section, which is £320m. The two schemes sit under the Nationwide Pension Fund, but the C&D is a ring-fenced pool so it has its own assets but they’re completely ring-fenced and protected.

It would be fair to say the Nationwide Pension Fund is a seasoned investor in alternatives. How do you go about choosing investments?

Well, we don’t choose things to be interesting; we try to choose things that meet the long-term objectives of the pension funds. We try to find funds and opportunities that are slightly different, maybe a bit more complex than the norm, because we think illiquidity and complexity can add value.

There’s a balance there because there are a lot of interesting things, but often they’re too niche or too small. We just feel uncomfortable with that, because we can’t really participate in a way that would make them meaningful to the fund. For example, some funds may just be raising £100m and we typically want to put £30m to £50m to work, particularly in private markets, and given the size of the fund, it’s not really that meaningful if we do smaller than that. But we don’t want to be more than 10% of a fund, because we don’t really want to be too exposed. That cuts out a lot of things.

Page: 1 2 3 4

Leave your comment

View our comments policy

Please login or register with us to leave a comment. It's completely free!