Video: why Nest has chosen to eliminate tobacco from its portfolios

Nest has chosen to eliminate tobacco from its portfolios over the next 1 – 2 years, to improve risk adjusted returns for its members, and in the long-term generate better outcomes.

Mark Fawcett, chief investment officer at Nest, explains that over the past decade governments have been putting increased pressure on tobacco companies, which is leading to a long-term decline in sales and a fall in profits.

“We believe as a result of this, it’s the right time for our portfolios to go tobacco-free,” says Fawcett.

“Tobacco companies used to be viewed as safe investments with very strong cash flows. We now view them as increasingly risky.”

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