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Our investment beliefs

NEST Trustees have established a set of investment beliefs to provide an objective and transparent framework assist effective internal decision making in a complex environment. These beliefs act as a guide to enable effective delivery of all investment functions.

  1. As long-term investors, incorporating environmental, social and governance (ESG) factors is integral to the investment management process.  
  2. Taking investment risk is usually rewarded in the long term. 
  3. Diversification is the key tool for managing risk. 
  4. Risk-based asset allocation is the biggest driver of long-term performance.
  5. Taking account of asset values and asset prices, economic conditions and long-term market developments enhances long-term performance and informs strategic decisions.
  6. Indexed management, where available, is often more efficient than active management. 
  7. Good governance, including an appropriately resourced in-house investment function, is in the best interests of NEST members.