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Home Employers Why choose Nest Award-winning investment strategy

An award-winning
investment strategy

Around one in three workers saves with Nest. That makes us one of the largest pension schemes in the UK. And that has advantages.

We can give your employees access to the kind of investments that are usually only available to the largest investors, including ones that aren’t listed on the market.

Your employees will also benefit from deals and low charges that only large investors get. And by keeping charges low, more of their money gets invested, meaning there’s more to grow.

Your employees' money can go further

Our in-house team base their investment decisions on ongoing evidence, research and analysis, including detailed insight into what our members need and expect from us. They invest members’ money in a wide range of investments all around the world. And they take a sophisticated approach to risk management to improve the quality and consistency of members’ investment returns. All of this helps our members get more back from what they save.

The UK’s largest workplace pension provider

12.1% Million members

£36.8bn Assets under management

5.1% 3-year annualised total return on investment for our 2040 Nest Retirement Date Fund net of annual management charge as at 31 December 2023

A bigger pension in a better world

Well-run organisations with sound environmental and social practices have a better chance of long-term success and profitability. That’s why responsible investment is at the heart of everything we do, and why our team takes account of environmental, social and governance (ESG) issues, including:

Environmental

Climate impact and greenhouse gas emissions, energy efficiency, air and water pollution and water scarcity.

Icon of raised hand with heart inside it

Social

Human rights, local community impact and employment, child labour, working conditions and anticorruption.

Governance

Diversity, executive compensation, management and board structure and other shareholder rights.

In 2020, we pledged to move Nest members’ money away from any company involved in thermal coal, oil sands or arctic exploration and drilling by 2025, unless they have a clear plan to phase out any related activity by 2030. We also committed to becoming a net zero investor by 2050.

73%

Nearly three quarters (73%) of members say they want the money in their pension to contribute towards positive outcomes for society.

We set up our first Climate Aware Fund in 2017

Our Climate Aware Fund moves money away from heavy polluters and into greener, sustainable investments. It’s performed so well that we’re now investing even more through climate aware strategies, making it a win for your employees’ pots as well as their carbon footprint – and their future.

So far, our Climate Aware Fund has helped reduce the total carbon footprint of all our members’ investments by the equivalent of:

Taking 469,317 cars off the road each year

Stopping 201,077 tonnes of waste going to landfill

Powering 118,374 homes for a year

Source: UBS Asset Management, Trucost, EPA, IEA as at 30 June 2023

Flagship funds tailored for your employees' needs

Ninety-nine percent of employees automatically enrolled into Nest stay in the fund they’re first put in. So, we’ve made sure these funds make your employees’ money work as hard as possible. We call them our flagship Nest Retirement Date Funds.

Your employees save into a Nest Retirement Date Fund that’s based on the age they plan to take their money out. There are up to 50 different Nest Retirement Date Funds, each one tailoring its investments to the employees’ needs – whether they’re in their twenties or their sixties. Throughout their saving journey, we’ll closely manage and adapt their investments – so their savings are always doing the right thing at the right time.

And, with our Nest Guided Retirement Fund and other options, your employees can even stay with us after they start taking their savings. We’ll help them manage their money in a flexible way.

We built this innovative way of looking after our members’ money based on years of research into what members want, what they do, and what they need.

Plus a range of other options

For those who want to take more or less investment risk, or save into a fund that’s more aligned with their beliefs or faith, we have four other funds that your employees can choose.

These funds are clearly named and explained, so employees who want to make a choice can easily understand their options. Which means they’re less likely to need help and support from their employers.

Expertly-managed funds	We have a range of expertly-managed funds for your employees to choose from.
Quarterly investment report	To make it easier to understand where Nest’s funds are invested and how they’re performing, we publish a report every quarter.
Statement of investment principles	Nest’s Statement of investment principles outlines the most important things that guide our investment decisions.
Investment approach	Our investment approach is designed to weather short-term ups and downs, and has won awards for its success.
Growing your money	Our youngest member is 16 and will spend decades saving, so we think very carefully about protecting and growing our members’ money over the long term.