Just received this email. Any thoughts on what this might mean?
——————
The Nest Sharia Fund is for anyone who wants their pension savings invested in line with Islamic principles. It’s open to all Nest members, regardless of faith. You switched to this fund in xxx xxxx. Until now, the Nest Sharia Fund has only invested in company shares that are screened to comply with Islamic principles. That means it’s riskier than our other funds, which put your savings into a wider range of investments. It’s important to strike a balance between growing your pension savings while protecting them from losses. After all, this is the money you’ll be relying on for later life. We’re taking steps to reduce risk levels for members who’ve chosen this fund because of their faith. |
|
|
What’s happening? We’ll start investing some of your pension savings in sukuk in November 2024. Most of your savings will continue to be invested in company shares. Sukuk are considered an Islamic version of bonds. They provide a steady source of income to your pot in a similar way other bonds would. Sukuk bonds do not receive interest which is prohibited under Islamic finance. How will this affect my pension savings?
By spreading your risk across different types of investments, your pension savings will be better protected from potential falls in the stock market. What do I need to do? Absolutely nothing. We’ll work in the background to reduce the amount of risk that’s taken with your savings.
If you’re interested in switching funds, take a look at your fund options. |
|
|