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Nest investment team

In-house team of investment experts

Nest’s investment experts are responsible for growing members’ money. Different teams are responsible for each of the following areas:

  • Managing risk so we choose investments expected to deliver returns without taking undue risk
  • Understanding the economic and investment environment to make the most of the opportunities and manage the risks
  • Choosing the right fund managers to work with and monitoring their performance
  • Understanding how changes in the way we invest could impact on members’ money
  • Making sure we invest responsibly across all our investments.

How the team manages members’ money

The team maintains a comprehensive understanding of what’s happening in economies and markets. They use this to make appropriate decisions on the amount of risk we should be taking, which asset classes to invest in and in what proportion for members.

The investment team is looking to meet Nest’s aim of growing members’ money well in excess of the cost of living, after charges, while avoiding undue losses.

The team has a clear risk management framework that helps them position our portfolios to achieve the best return for the risk we’re taking.

The team also understands what’s happening to different types of investment in different economic or market regimes. This puts Nest in a position to reduce exposure to particular assets at certain times and also to understand when assets are undervalued and should be bought.

Mapping risk

Nest’s investment team has developed a bespoke risk management framework to track a range of vital risk indicators and get an understanding of the economic environment.

The team tracks a diverse range of indicators including:

  • Economic growth in developed and emerging global markets
  • Core and headline inflation in developed and emerging markets
  • Levels of investor confidence
  • Political risk
  • Volatility levels in markets and for specific asset types.

Understanding valuations and regime signals

The investment team works to understand whether investments are fairly priced and how far they might provide a return on members’ money.

Because we focus on making decisions in the long-term interests of members, we don’t buy and sell investments very frequently, as some other schemes might. We invest where we can see good value in the long term, and if the outlook for an investment over the years strongly suggests poor value, we’ll move money into more attractive assets. We don’t make investment decisions based on short-term patterns or market sentiment.

Reviewing where members’ money is invested

The investment team wants to make sure Nest is taking the right amount of risk to grow our members’ pot.

This means they examine where members’ money is invested, to see where their investments sit in relation to the risk environment we’ve identified.

The investment team meets every quarter to review all of the information and make recommendations. This gives broad weightings for the main asset types we invest in. These include equities and other growth assets, emerging market debt, corporate and other bonds, property, cash and gilts. The team also monitors the performance of our fund managers and considers the opportunities available in different asset classes, integrating environmental, social and governance risks.

Nest investment leadership

The day-to-day running of Nest’s assets under management is led by the chief investment officer (CIO) and Nest’s investment team. Their activities are overseen by Nest’s investment committee.

Nest chief investment officer

Nest’s CIO is Mark Fawcett. He’s responsible for leading the day-to-day running of Nest’s investment approach. Mark is also responsible for making recommendations to the investment committee on areas including asset allocation, movement between the investment phases and appointing fund managers.

Read Mark’s biography in full.

Nest investment committee

Nest’s investment committee provides independent oversight to the activities of the investment team. Our investment committee members come from a variety of industry backgrounds.

  • Chris Hitchen - investment committee chair
  • Clive Elphick - investment committee member
  • Jill Youds - investment committee member
  • Jennie Austin - investment committee member
  • Jaap van Dam - investment committee member.

Read biographies for our investment committee members.