NEST Pension Performance

DavidAC

I have a pension that I would like to move elsewhere due to poor performance and relatively high fees. I was looking at NEST 2040 Retirement Date Fund on trustnet NEST 2040 Retirement Pn Fund factsheet | Trustnet which shows 42.3% growth over last 5 years, but on the NEST site Compare fund performance | Nest Pensions it states only 27.6% over 5 years. What is the reason for the difference?

The NEST AMC is low at only 0.3%. The contribution fee is high but they state "You won’t pay a contribution charge on any transfers into Nest.."

Albermarle

The usual issue with such discrepancies is timing.
The Trustnet data will be updated daily I would think, whilst the info on the Nest website says this.
Figures correct as at 31st September 2023. Updated quarterly.

Markets in bonds and equities have improved in the last couple of months, so that will account for some of the difference, but not that much.

I wonder if the Nest data is taking into account of the 1.8% initial charge and Trustnet is not, but again It would not make that much difference.

MallyGirl

maybe the 1.8% contribution fee comes into that?

dunstonh

quarter 4 2018 had a stockmarket crash.  So, get 5 years returns data from a date before that crash vs 5 years after that crash would give a large difference.

The NEST AMC is low at only 0.3%.

0.3x% is very achievable across the market place nowadays.

DavidAC

I did notice the dates for NEST were to September, but I cannot see how it could make a 15% diffence.

penners324

Don't believe you can just open a Nest account. Only done through employer schemes. Though you may have 1 from a previous job

DavidAC

I have a NEST 2032 with my current employer. Not had it that long. Trying to determine if it is worth switching an older pension in to it.

Prism

DavidAC said:

I did notice the dates for NEST were to September, but I cannot see how it could make a 15% diffence.

It makes a huge difference. Take the world index today, which is up around 60% over the last 5 years. Set the dates back 1 month so its Nov 2018 to Nov 2023 and the return is 50%. Another month back its 40%.

dunstonh

DavidAC said:

I did notice the dates for NEST were to September, but I cannot see how it could make a 15% diffence.

I explained why in the post before you made this one.

DavidAC

Thank you all. I will wait until the next NEST quarterly update and then compare.

My Aviva pension used to be good but has gone off a cliff and the AMC is quite high. Any suggestions where to move it for middle risk or should I give it more time? It has been in decline relative to others in this sector for over 5 years though, last year most dramatically.

Key	3 m	6 m	1 y	3 y	5 y
Aviva UK Equity AP	0.1	2.3	9.2	27.4	41.2
PN UK All Companies	1.8	2.7	8.1	14.7	26.5
Position	721/809	549/807	348/805	202/787	168/741
Quartile Ranking	4	3	2	2	1

Aviva UK Equity AP Fund factsheet | Trustnet

MallyGirl

The Aviva one is UK equity focused - do you have other pensions with wider investment choices?