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© 2025 20/80 LIMITED
In January 2025, NEST Corporation state on their website that 'Over 99% of our members are in one of our Nest Retirement Date Funds. These award-winning funds were designed to work for most people, but you can choose to invest for different beliefs, faiths or risk appetite.'
The Fund choices that NEST makes available to members can be seen on their website, as can fund prices, which are updated monthly. Further information can be found through the links which are provided below:​
The Fund choices that NEST makes available to members are mostly categorised as follows:​
(1) Nest Retirement Date Funds
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A series of funds is offered, with the intent that they each close shortly after the chosen retirement date. For example, the Nest 2013 Retirement Fund closed on 30 June 2014 and, more recently, the Nest 2023 Retirement Fund closed on 30 June 2024. The longest-dated Nest Retirement Fund currently available is the Nest 2070 Retirement Fund.
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For each fund, asset allocation decisions take account of the remaining investment time-horizon. For example, there is a 30 year difference in the retirement date for the Nest 2040 Retirement Fund and the Nest 2070 Retirement Fund, so the 2070 Fund can target investments with a longer time horizon. However, as investors can switch between funds, it should not be assumed that investments will be held for the full life of any particular Retirement Date Fund.
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Perhaps partly for that reason, the difference in asset allocation between each Fund was minimal at the end of September 2024, especially for the Retirement Date Funds due to close between 2035 and 2060.​
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(2) Nest Ethical Funds
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There is a Nest Foundation Fund, a Nest Ethical Growth Fund and a NEST Consolidation Fund available. More information can be found from the link below:
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(3) Nest Sharia Fund
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The Fund invests in Sharia-compliant company shares and in sukuk, which are considered an Islamic form of bonds, and the investments are screened by islamic scholars to make sure they meet Sharia principles. More information can be found from the link below:
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(4) Nest Higher Risk Fund
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The Nest Higher Risk Fund aims to get a higher return than the Nest Retirement Date Funds. A 'Lifestyled' option is made avalable, for those who wish to move their pot out of the Nest Higher Risk Fund into a Nest Retirement Date Fund ten years before their chosen Nest retirement date. More information can be found from the link below:
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(5) Nest Lower Growth Fund
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The Nest Lower Risk Fund is made available to those who are not concerned about having their savings grow in line with the rising costs of living. More information can be found from the link below:
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(6) Nest Guided Retirement Fund
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The Nest Guided Retirement Fund is an option currently made available for members aged between 60 and 70, who have at least £10,000 invested in any of the NEST funds and want to start taking their money out of Nest. With this option. Nest manages and invests members' pots through a 'Nest Vault' (used for money for the future) that has a 'Nest Wallet' (for cash withdrawals) and a 'Nest Safe' (for emergency cash) and 'Money for Later Life' (for income, post age 85).
The main aim of the Nest Guided Retirement Fund is to provide sustainable withdrawals until age 85. More information can be found from the link below:
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NEST Corporation provides some information about underlying holdings in many of their funds.
Screening filters are available for their Retirement Date Funds, the Ethical Fund, the Sharia Fund and the Higher Risk Fund, all of which can be screened at Industry level (when fields are recognised).
NEST sector screening filters are made available, and the categories they use are:
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Communications
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Consumer Goods​
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Energy
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Finance
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Healthcare
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Industrial
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Lifestyle
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Materials
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Real Estate
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Tech
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Uncategorised
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Utilities
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(The sector definitions used by Nest will vary from the sector definitions used by some other providers.)
Sector Definitions
Before drilling down to 'Sector Definitions', which are used to identify the area of industry that businesses seek to operate in, it's relevant consider other factors too, such as the nature of any selected holding at a company level, because this can have a major influence on the likely risks that particular investors are taking.
For that reason, we choose to start by using some well known asset class definitions that have been used by investors for generations; after that, we move onto some well-understood, time tested, industry-sector definitions.
Asset Classes:
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Fixed Income
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Equities​
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Commercial Property
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Infrastructure
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Commodities
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Other​
The asset class definitions shown above are simply used as a starting point. Further clarification is essential; for example, investors in '3, 4 and 5' usually fo not have physical possession of an asset*.
* If a trader in the market has an open position in a Stock Futures contract & In-The-Money Stock Option that has not been squared off on the expiry date, these contracts would need to be physically settled.
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Please click on the links below to see more regarding the 'Asset Classes' we show above.
​As well as 'asset classes', there are 'sectors' and 'sub-sectors' too, all of which can be sliced and diced in various ways. We prefer to use commonly known sectors and sub sectors, as used by major data providers, even though many companies are not necessarily well-suited to the sector/sub-sector that they are said to be operating in.