NEST investment guide sets the record straight on its approach

NEST launches a new detailed guide to explain its investment approach and its ambition for NEST members.

With millions of workers saving into a workplace pension scheme, many for the first time, automatic enrolment marks a new era for pension savers. NEST has created a guide, available to download from its website, to help advisers and employers understand how NEST invests its members’ money.

This new guide shows how NEST’s investment approach delivers high quality while keeping costs low. With its multi-phase investment strategy it targets inflation beating return objectives while protecting savers from extreme investment losses.

There have been various misconceptions about NEST’s investment strategy. This new guide addresses some of those myths and provides advisers and employers the real story. NEST’s approach of dynamically managing risk at all stages of a saver’s time with the scheme is designed to succeed in different market and economic conditions.

NEST’s investment strategy also gives employers and their advisers reassurance that by using NEST they’ll meet all the quality standards being called for by Government and regulators, now and into the future. These are minimum standards set out for all default strategies of automatic enrolment schemes.

Speaking about NEST’s investment approach, Mark Fawcett, Chief Investment Officer at NEST explains:

‘We wanted to build a pensions saving vehicle that is easy for members to use and understand but at the same time give them access to the latest investment techniques and exposure to a wide variety of asset classes, including property and emerging markets, as well as more traditional types of investment such as developed market equities and corporate bonds.

‘At the heart of our investment process is a comprehensive understanding of what’s happening in the economy and markets. We use this in order to help us make appropriate decisions on achieving the right return and risk for our members throughout their savings career.’

Designed to help advisers and employers understand what happens to members’ money, this new guide gives a detailed account of NEST’s investment approach.

Read Looking after members' money (PDF)

Advisers looking for more information about NEST and its investment strategy can also go to NEST’s dedicated adviser site: www.nestpensions.org.uk/NESTforadvisers

NEST’s investment approach - key features:

1. Unique default option comprises of 47 single-year target date funds, risk managed for each year of retirement
2. Focused fund range including Ethical, Sharia, Lower Growth and Higher Risk options each year the same low charge as the default
3. High quality risk management driven by cutting-edge investment techniques, high quality data and analysis and transparent governance  
4. Cost-efficient delivery - bespoke solutions powered by leading global fund managers
5. Clear investment communications designed with and for members, employers and their advisers.