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CTG Self-Education: Nest 2040

Nest 2040 Retirement Date Fund (growth phase)
  • Nest Corporation provide updates once a quarter (Q4-2024)
  • Foundation Phase
  • Growth Phase
  • Consolidation Phase
  • Post-retirement Phase

Market Overview:​​​

​

Please click the link below to see Nest's Quarterly Report video. (Other videos are available on 'nestpensions' YouTube channel.) 

 

Below is a copy of a general market overview made publically available by Nest, which relates to their entire range of funds. 

Market Overview (continued):​​​

​​​

Independent 'Market Overviews' relating to the investment strategies offered by Nest Corporation can be made available.

Overview from Nest:​​​

Important: This commentary relates to their entire fund range, so it is not specific to Nest 2040.​​​

​

NEST Investment Market Overview as at end of Q4 2024.PNG
'Portfolio Changes'- from Nest:​

​Important: This commentary relates to their entire fund range, so it is not specific to Nest 2040.

NEST Portfolio Changes as at end of Q4 2024.PNG

Market Overview (continued):​​​

​​​

Independent 'Market Overviews' relating to the investment strategies offered by Nest Corporation can be made available.

Market Overview (continued):​​​

​​​

Independent 'Market Overviews' relating to the investment strategies offered by Nest Corporation can be made available.

Fund Overview:​​​

​

Please click the link below to see Nest's Quarterly Report video. (Other videos are available on 'nestpensions' YouTube channel.)

 

Below is a copy of a general market overview made publically available by Nest, which relates to their entire range of funds. 

Fund Overview (continued):​​​

​​​

Independent 'Market Overviews' relating to the investment strategies offered by Nest Corporation can be made available.

Top 10 holdings as at 31 December 2024 represent 85.1% of the fund

  • Investment Vehicle
UBS/Nest Climate Aware Equities Strategy
44.2
Allspring/Nest Global Investment Grade Corporate Bond Strategy
7.5
LGIM Hybrid Propery Transition Fund
BlackRock ICS Sterling Liquid Environmentally Aware Fund (LEAF)
Northern Trust/Nest Climate Aware Emerging Market Equities Strategy
6.3
5.4
4.9
Royal London Corporate Bond Fund
JPMorgan/Nest Global High Yield Corporate Bonds
Amundi Funds Global Emerging Blended - IE
Royal London Investment Grade Short Dated Credit Fund
CBRE Caledon Capital Management
4.3
4.0
4.0
2.5
2.0

This table and the 3 below are for informational purposes only. (All 4 are unauditied and unverified.)

  • Fund %

Sector breakdown for Nest 2040 at 31 December 2024  (We have been unable to access the data, so far, but we will include it when we find it available. )

  • Nest Sectors
  • Fund %
Climate Aware Equities*
​
?.00
Fixed Income*
?.00
Property*
?.00
Ethical Equities*
​
?.00
Ethical Fixed Income*
​
?.00
Commodities*
​
?.00
Other*
​
?.00
* Nest Sectors have been merged to simplify this illustration. (For actual Nest Sectors, visit the Nest website.)
​​
  • Nest Sectors
  • Fund %
Climate Aware Equities*
​
46.00
Fixed Income*
17.50
Property*
6.50
Ethical Equities*
​
0.50
Ethical Fixed Income*
​
0.20
Commodities*
​
0.80
Other*
​
28.50
* Nest Sectors have been merged to simplify this illustration. (For actual Nest Sectors, visit the Nest website.)
​​

Comparison - breakdown
at 31 December 2024

  • Sector
  • Fund %
Data awaited
0.00

Fund Outlook:​​​

​

Please click the link below to see Nest's Quarterly Report video. (Other videos are available on 'nestpensions' YouTube channel.)

A specific NEST 2040 Fund Outlook has not be found, but the latter is helpful.​

​

Below is a copy of a 'Responsible Investment Update' made publically available by Nest, which relates to their entire range of funds.

NEST Investment Outlook not found as at end of Q4 2024 - there is this..PNG

Fund Management Team:​​​

​

Please click the link below to see Nest's Fund Management Team

Investment Process:​​​

​

Please click the link below to see Nest's Investment Management Process.

Product charge and performance:​​​

​

Nest issues a 'Performance Table' and also 'Key facts' in PDF format.

Performance and Product Charges

Text drawn from Nest's 'Key facts':​​​

​​​​​

'Members pay a 0.3 per cent annual charge on their total funds
under management and a 1.8 per cent charge on each
contribution as it’s made. This is broadly equivalent to an annual
management charge (AMC) of 0.5 per cent. If members stop
contributing at any time they’ll only pay the 0.3 per cent AMC'.

The Nest 2040 Retirement Fund invests through third-party funds. 


The Nest 2040 Retirement Fund invests through externally managed investment vehicles, rather than directly into holdings, such as the shares of compnies listed on the London Stock Exchange. As a result, fees and management charges are payable to the third-party investment managers, in addition to the fees that are charged by Nest.

Third-party Performance Data:​​​

​​​​​

As a starting point, we show a selection of sources where performance data is made publicly available on an ongoing basisin rspect of the Nest 2040 Retirement Fund.

Performance of underlying holdings:​​​

​​​​​​

  • At 'Level One', the performance of many of the underlying funds in the Nest 2040 Retirement Fund can easily be measured through the data sources shown above. (Not all of the top-ten holdings are conventional funds, and this can make data analysis a little more chalenging.)

  • At 'Level Two' a see-through to the individual holdings held, as a result of the mandates managed by the third-party managers, can be accessed directly from Nest, for those interested in seeing the underlying exposure. (See the link below.) 

Product Charges

Explicit Charges
  • Nest Corporation provides a 'Key Facts' document showing what we call the 'Explicit Charges'; these can be found on page 20.
Other Cost and Charges
  • Indirectly, the underlying performance of investments is affected by non-explicit costs and charges. Want to learn more?
Annual Statements
  • Nest Corporation provides an 'Annual Statement', which enables individuals to check: 
  •  
  1. The total payments into their 'pot'. 
  2. The investment performance achieved.
  3. A prediction of the annual income that will be generated a at retirement.
​
To see their video, click here.
Income in Retirement
  • Predictions made about the annual income that will be generated in retirement are likely to be significantly wide from the mark for obvious reasons, such as:
  • ​
  1. Income in retirement needs to be adequately inflation-proofed in some way if it is not to lose its purchasing power.
  2. Taxation rates change over time, as do the fees and other costs that are charged by pension providers, investment managers amd other business associates.  
  3. The amount paid-in is certain, but the amount that will be paid-in, over the remainder of an individuals working like, is not.​
Performance Projections
  • Performance projections are not based on real world expectations, and they are not allowed to be, due to regulatory rules. For example:
  •  
  1. 'Mandated projections' are enforced, and these currently require that future growth assumptions must be no higher than 2%, 5% and 8% for the low, mid and high growth rates in tax-exempt wrappers, which includes Workplace Pensions, currently. 
  2. In addition, there is another requirement which stipulates that there must be a 3% difference between each of the growth rates used. 
 
In the real world, much higher or much lower rates of return may be achieved. 
Further Information
  • We have not provided an exhaustive list of factors that should be considered on this page; if you have a pension with Nest, you will have access to information that is not available in the public domain, so may prefer to direct any questions you might have directly to them.
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