How we invest
Investment Risk Appetite Statements

NLF has a:
- High appetite to take a level of investment risk that maximises the probability of the fund’s sufficiency but within the bounds of prudence
- High appetite for investments to deliver positive Environmental, Social and Governance outcomes as well as to have a high degree of alignment to the United Nations’ Sustainable Development Goals
- Low appetite for the failure of the Mixed Asset Portfolio to meet its return target in the next three years
- Low appetite for concentration of risk positions in the Mixed Asset Portfolio, while making meaningful allocations to each type of asset
- High appetite for illiquidity in the Mixed Assets Portfolio whilst there is a material allocation of assets to the liquid National Loans Fund
- Low appetite for embarrassment and reputation risk, reflecting the desired standard of a public body
- Medium appetite to focus NLF investments in the UK, supporting the UK Government
- High appetite for transparency and understanding, and a low appetite for operational complexity (including taxation treatment)