Corporate Adviser
  • Content Hubs
  • Magazine
  • Alerts
  • Events
  • Video
    • Master Trust Conference 2024 videos
  • Research & Guides
  • About
  • Contact
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG
No Result
View All Result
Corporate Adviser
No Result
View All Result

Nest sees 10pc annualised 5-year return

by John Greenwood
September 1, 2016
Share on FacebookShare on TwitterShare on LinkedInShare on Pinterest

Nest has achieved an annualised return in excess of 10 per cent for the growth phase of its default investment fund.

Publishing its first set of five-year performance figures, the state-backed provider says even its more cautious foundation phase retirement fund has achieved annualised returns of 8.6 per cent.

Nest chief investment officer Mark Fawcett says the performance shows its diversified approach, supported by strong returns from bonds and property investents, has paid dividends for its members.

Nest’s funds have no hedging against currency fluctuations and have benefited from a Brexit increase as a result of the impact of the reduction in the value of sterling on its globally diverse asset allocation.

Nest has also published explicit transaction costs for each of its range of target date funds. The highest costs, for its growth phase funds, are 8.3 basis points.

Fawcett says: “We have seen positive returns from across the portfolio, with property and bonds doing well. We haven’t changed our asset allocation approach as a result of Brexit because we were already globally diverse.

“Our combination of passive funds and our target date fund approach has allowed us to deliver low transaction costs.”

 

Performance figures, to the end of July 2016

Representative fund that has been going through the foundation phase (2057 retirement fund)

a.    1 year annualised total returns after deducting the annual management charge – 10.956

b.    3 year annualised total returns after deducting the annual management charge – 8.097

c.     5 year annualised total returns after deducting the annual management charge – 8.649

Representative fund in the growth phase (2040 retirement fund)

a.    1 year annualised total returns after deducting the annual management charge – 13.34

b.    3 year annualised total returns after deducting the annual management charge – 10.08

c.     5 year annualised total returns after deducting the annual management charge – 10.06

Corporate Adviser Special Report

REQUEST YOUR COPY

Most Popular

  • Death-in-service benefits excluded from IHT grab

  • Aviva launches ‘flex first, fix later’ retirement option for master trust savers

  • Laura Mason: This is the moment for targeted pension support

  • Stancombe to lead retirement platform business

  • GAD to assess state pension age in third review

  • ‘Pound for Pound’ initiative launches to pilot new pension value metrics

Corporate Adviser

© 2017-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy policy
  • T&Cs
  • Contact

Follow Us

X
No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.