Professional Documents
Culture Documents
Nqir To Jun 2018
Nqir To Jun 2018
6.7% 2.8 2
0
* For asset allocation and performance of all NEST Retirement Date Funds see pages 8 and 9 of this report 1 Year 3 Years 5 Years Since launch
** Since launch Annualised total return, net of annual management charge
*** The Sortino ratio measures a fund’s performance relative to the downside volatility it experienced in the Benchmark CPI + 3%
same period.
NEST Quarterly investment report 2
At end June 2018
9 8.7%
Risk measures*
6 5.5%
4.9% 4.5% 4.9%
Annualised volatility Sortino ratio**
7.0% 3.2 3
0
1 Year 3 Years 5 Years Since launch
* Since launch Annualised total return, net of annual management charge
** The Sortino ratio measures a fund’s performance relative to the downside volatility it experienced in the Benchmark CPI + 3%
same period.
NEST Quarterly investment report 3
At end June 2018
Investment performance
20
20%
15
12.9%
4.8% 11.9% 11.3%
12
0%0
9
Risk measures* 6.6%
4.9%
6 4.4%
Annualised volatility Sortino ratio**
9.3% 2.2 3
0
1 Year 3 Years 5 Years Since launch
* Since launch Annualised total return, net of annual management charge
** The Sortino ratio measures a fund’s performance relative to the downside volatility it experienced in the
same period.
NEST Quarterly investment report 4
At end June 2018
40
40% Shares make up 100 per cent of this fund.
This table shows the proportion of these holdings within this allocation
Investment performance
20
20%
20
16.7% 17.0%
0%0 14.4% 14.6%
15 13.5% 14.1%
12.0% 11.8%
Risk measures* 10
0
1 Year 3 Years 5 Years Since launch
* Since launch Annualised total return, net of annual management charge
** The Sortino ratio measures a fund’s performance relative to the downside volatility it experienced in the NEST Islamic Titans World Index
same period.
NEST Quarterly investment report 5
At end June 2018
0.8
0.6%
0.6 0.5% 0.5%
preserve the nominal value of 100 100% Short duration investment grade bonds 0.2
100%
contributions after charges and 0.0
grow the fund in line with low-risk 1 Year 3 Years 5 Years Since launch
money market investments 80 Annualised total return, net of annual management charge
80%
achieve an investment return that 7 day sterling libid rate (GBP)
20
20% * Since launch
** The Sortino ratio measures a fund’s performance relative to the downside volatility it experienced in the
same period.
0%0
3
2.4%
1.9% 1.9%
Fund objectives Asset allocation 2 1.6% 1.5%
60
60%
Risk measures*
40
40%
Annualised volatility Sortino ratio**
4.2% 1.8
20
20% * Since launch
** The Sortino ratio measures a fund’s performance relative to the downside volatility it experienced in the
same period.
0%0
40%
0.4
20%
0.2
0%
0.0
Starter
2064
2063
2062
2061
2060
2059
2058
2057
2056
2055
2054
2053
2052
2051
2050
2049
2048
2047
2046
2045
2044
2043
2042
2041
2040
2039
2038
2037
2036
2035
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
NEST Quarterly investment report 8
At end June 2018
Global developed equities Passive UBS Life Climate Aware World Equity Fund FTSE All World Developed Index 13.8%
Gilts Passive SSGA UK Conventional Gilts All Stocks Index Fund FTSE Actuaries All Stocks Index 0.1%
UK index-linked gilts Passive SSGA UK Index Linked Gilts over 5 Years Index Fund FTSE Actuaries Index Linked Gilts over 5 years Index 0.1%
Dynamic risk management Active Amundi NEST Equity Risk Management fund N/A 4.5%
Low-risk sterling liquidity Active Amundi Money Market Fund - Short Term GBP SONIA 1.1%
Low-risk sterling liquidity Active BlackRock Aquila Connect Cash Fund Seven-day LIBID 0.6%
Ultra Short Duration Investment Grade Credit Active Blackrock Institutional Sterling Ultra Short Bond Fund GBP 3 Month LIBID 3.7%
Short Duration Investment Grade Credit Active Royal London Investment Grade Short Dated Credit ML 1-5 year Sterling Non-Gilt All Stocks 6.5%
Global ethical equities Active BMO F&C Responsible Global Equity Fund** MSCI World Index 0.2%
Sharia compliant equities Passive HSBC Islamic Global Equity Index Fund Dow Jones Islamic Titans 100 0.1%
Sterling bonds Active Royal London UK Corporate Bond Pooled Pension Fund iBoxx Sterling Non-Gilt All Maturities Index 13.4%
UK direct property Active LGIM Managed Property Fund REF/IPD UK Quarterly Property All Balanced Funds Index 0.1%
Hybrid property Active LGIM Hybrid Property (70/30) Fund FTSE EPRA/NAREIT Global REITS/REF/IPD UK Quarterly Property All Balanced 8.3%
Funds Index
Global property Passive Global Real Estate Equity FTSE EPRA/NAREIT Global Developed Real Estate Index 3.3%
Ethical corporate bonds Active BMO F&C Responsible Sterling Bond Fund** iBoxx Sterling Non-Gilt All Maturities Index 0.1%
Emerging markets (alternative index) Passive HSBC GIF Economic Scale Index Emerging Markets Equity Fund MSCI Emerging Markets 2.3%
Emerging markets (alternative index) Passive Northern Trust Emerging Markets Custom ESG Equity Index Fund MSCI Emerging Markets Custom ESG Index 3.4%
Emerging market debt Active Amundi Funds Global Emerging Blended - IE 50% JPM EMBI Global Diversified Hedged Euro/50% JP Morgan ELMI Plus 4.1%
Global high yield bonds Active JP Morgan Life High Yield Opportunities Fund Bank of America Merrill Lynch Non-Financial Developed Markets High Yield 3.4%
Constrained Index (Hedged to GBP)
Single Year Gilts Passive LGIM Single Year Gilt Funds N/A 0.0%
*Figures may be affected by rounding. **Please note that F&C funds are distributed by BMO Global Asset Management.
NEST Quarterly investment report10
At end June 2018
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