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Our investment beliefs

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

  1. Good governance, including an appropriately resourced investment function, is in the best interests of Nest’s members.
  2. As long-term investors, we believe that integrating environmental, social and governance (ESG) considerations into the investment management process improves risk adjusted returns. 
  3. We believe that long-term returns to investors are likely to be more sustainable if companies consider the interests of wider stakeholders – customers, employees and the wider public as well as shareholders and lenders.
  4. Our members will be saving with us for many years and we believe that should be used as a source of advantage by fostering a long-term investment horizon.
  5. We believe, however, there are times when we need to manage shorter term risks.
  6. Risk and return are strongly related. There are varied investment risks that carry compensations or premiums. Illiquidity risk is one such premium which, as a long-horizon investor, our members can benefit from. Following a diversified investment approach improves the risk-adjusted returns of our member funds. 
  7. We believe that disciplined and rigorous manager selection is a source of value.

Last updated: 07/20