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.
- Good governance, including an appropriately resourced investment function, is in the best interests of Nest’s members.
- As long-term investors, we believe that integrating environmental, social and governance (ESG) considerations into the investment management process improves risk adjusted returns.
- 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.
- 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.
- We believe, however, there are times when we need to manage shorter term risks.
- 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.
- We believe that disciplined and rigorous manager selection is a source of value.