NEST achieves top ranking for responsible investment

NEST is delighted to be acknowledged for our commitment to responsible investment, which we believe is crucial to achieving superior long-term value and better member outcomes.

ShareAction’s report, published today, sees NEST achieving first place among automatic enrolment schemes.

Looking at responsible investment, the report, ‘Entrusted with our Future: A Survey of the Responsible Investment Performance of UK Pension Funds’, applauds NEST’s advanced voting and engagement guidelines. It also notes NEST’s engagement with fund managers about voting on executive pay and board composition, in addition to enhanced reporting on responsible investment activity on our website.

Since launch NEST has been developing responsible investment policies to support our investment approach, including our voting policy that was published last year. This policy allows companies, fund managers and our members see what’s important to NEST and how we intend to engage. Having a NEST policy on voting makes us accountable as a responsible and long-term owner of assets. We expect our fund managers to take a serious and considered approach to using our voting rights.

NEST’s Diandra Soobiah, manager of ESG and stewardship, says:

‘We’re thrilled to be recognised for our work to date on our responsible investment approach. NEST believes responsible investment supports long-term value, reduces risk and supports better member outcomes. We look forward to building on the foundations we’ve laid down as our influence grows along with our assets under management.

Our long term aim is to achieve great outcomes for our members by factoring in environmental, social and governance (ESG) issues into our investment approach and building relationships with our investee companies through considered engagement and voting.

NEST’s investment approach - key features:

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