Investment

NEST pools and invests funds securely, following strict trustee guidelines set out in the NEST Trust Deed. These guidelines are designed to protect employee entitlements by ensuring all investments meet high safety standards and pose minimal risk. The primary focus is to safeguard the original contributions made on behalf of employees while also generating potential returns.

Net income is earned from the investment of these funds and is regularly distributed back to employers. These earnings can be used as a credit against future contributions. Investment income is calculated daily and pro-rated to each contributing employer based on their daily balance.

Long-term NEST employer participants will enjoy significant savings with their entitlements obligation becoming substantially self-funded.

The primary goal of NEST is to safeguard employee entitlements. As outlined in the Trust Deed, the Trustees' main priority is to protect the original contributions made on behalf of employees from any capital loss. To ensure this, strict investment guidelines and safety measures have been put in place. These guidelines require that all NEST investments hold an independent credit rating of ‘A’ or higher from a recognised rating agency, ensuring funds are placed only with secure and reputable institutions.

This means NEST only invests in institutions that have been independently rated as having strong financial stability and high credit quality. The Trustee will only consider investments once an institution meets the strict criteria set out in the Trust Deed, ensuring the security of employee entitlements.

Not only does this approach provide security, but it also offers the potential for competitive returns on the funds contributed.