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Investment approach

NEST focuses on quality

We want to help our members have a better retirement, whenever and whatever they save. We think they deserve to get more back from what they save by having a pension that’s carefully looked after by experts.

The way NEST invests aims to grow members’ money and offer high quality at one low cost.

How we deliver quality investment for all

  • We believe our members benefit from having an in-house investment team to look after their money. We don’t hand over responsibility for investment decisions to another organisation.
  • We carefully spread our members’ money over diverse investments from around the world using funds from leading fund managers. These include Amundi, BlackRock, BMO, HSBC, Legal & General Investment Managers, State Street Global Advisors, Northern Trust and UBS.
  • We believe an important part of growing members’ money is investing it responsibly and sustainably. This means including how the companies and economies we invest in are run, and their impact on people and the planet, in our investment processes.
  • We have clear investment objectives and beliefs that set out what we want to achieve for members and how we’re going to achieve it.
  • We make investment decisions based on evidence, research and analysis. This includes detailed research into what members need and expect from us.
  • We aim to be transparent and report back on how we’re doing through things like our fund factsheets and voting reports.

NEST default fund and other fund choices

NEST’s high quality default range

NEST’s high quality default range image

More than 90 per cent of people automatically enrolled into a pension scheme stay in the fund they’re first put in, known as the ‘default’. This means the default has to be of the highest quality and right for a broad range of people, whether they’re 22 or 62.

There are nearly 50 NEST Retirement Date Funds in our default strategy. Each Retirement Date fund is designed for the year the members invested in it are expected to retire. For example, the 2045 NEST Retirement Fund is tailor-made for members retiring in 2045.

Read more about NEST Retirement Date Funds

Providing a choice of different funds

NEST also has a diverse range of other funds. These provide choices to members who want to take more or less investment risk or want something different because of their beliefs or faith.

You can see where NEST’s funds are invested and how they are performing by reading our fund factsheets.

How we invest wins awards

NEST has been recognised around the world for the way we invest members’ money:

  • Best defined contribution plan, Financial News Awards for Excellence 2016
  • Retirement innovation  category, Professional Pensions UK Pensions Awards 2016
  • Best ESG programme, Institutional Investor peer to peer awards 2016
  • Best DC Fund Chief Investment Officer, European Innovation Awards 2015
  • Pension scheme of the year, Financial News Awards for Excellence 2015
  • Best defined contribution/hybrid strategy, IPE Awards 2015
  • Best industry-wide pension fund, IPE Awards 2014
  • Best use of DC and hybrid structure, IPE Awards 2013
  • Best risk management solutions, IPE Awards 2013
  • Best DC investment initiative, Engaged Investor Trustee Awards 2013

Offering value and quality for all

No matter which fund members invest in, we aim to give them high quality and value for money. Our Value for money statement sets out how we do this.

Value for Money (PDF)

Start using NEST now

To access NEST’s high quality investment management, you can sign up to and start using NEST now. 

Start using NEST now