Important changes at Rest

Changes to asset allocations

Asset allocation means how an investment is spread across different asset classes. A benchmark asset allocation is the allocation expected to apply to the investment option most (but not all) of the time, as it’s the allocation most likely to achieve an investment’s long-term objectives.

Effective 30 September 2022, we’re changing the benchmark asset allocation for some of the asset classes within our Core Strategy investment option as part of our annual review. The changes to benchmark asset class allocation within Core Strategy are:

• Overseas Shares increases from 32% to 33%
• Infrastructure increases from 10% to 11%
• Debt decreases from 16% to 15%
• Alternatives decreases from 4% to 3%.

Australian Shares, Property and Cash benchmark asset allocations for Core Strategy remain the same.

Benchmark asset allocations for all other investment options remain the same.

For all investment options other than Core Strategy and Sustainable Growth:

• the allocation to individual asset classes may vary by +/-5% from the benchmark allocation shown, but not below 0% or more than 100% for an individual asset class; and
• where an option does not have a benchmark allocation to Cash securities, an allocation of up to 5% may be introduced, and
• the overall allocation to growth assets and defensive assets may vary by +/- 10% from the allocation shown.

Rest may vary the asset allocations (including the benchmark and ranges) of all or any of these options and introduce new options without prior notice. The asset allocations for each investment option are available at rest.com.au/investments. For more information about asset allocation in Rest’s investment options, refer to the Investment Guide or Rest Pension PDS.

Changes to investment fees and indirect costs

Investment fees and indirect costs are estimates and can vary year to year for each investment option.

The tables below show estimated investment fees and costs for the years 30 June 2021 and 30 June 2022.

The actual amount charged in subsequent financial years will depend on the actual costs incurred in those years. Future fees and costs may differ from past fees and costs.

For more information, please visit rest.com.au/investmentfees

* Basic Cash closed on 13 August 2021, so the above fees and costs reflect those that applied for the period from 1 July 2021 to 13 August 2021

* Basic Cash closed on 13 August 2021, so the above fees and costs reflect those that applied for the period from 1 July 2021 to 13 August 2021

Changes in asset allocation for Rest’s Investment options effective 28 September 2020

The benchmark asset allocations for Rest’s investment options are reviewed annually. This means that we review the mix of asset classes for each investment option with the aim of better achieving the investment return objectives.

New benchmark asset allocations for Core Strategy, Capital Stable, Balanced, Balanced – Indexed, Diversified, High Growth and Shares will be effective from 28 September 2020 and are shown in the table below.

Changes in asset allocation for Rest’s investment options effective 23 September 2019

The benchmark asset allocations for Rest’s investment options are reviewed annually. This means that we review the mix of asset classes for each investment option with the aim of better achieving the investment return objectives.

New benchmark asset allocations for Capital Stable, Balanced, Diversified, High Growth and Core Strategy will be effective 23 September 2019 and are shown in the table below.


Changes to classification of investments

Also from 23 September 2019, we’re making a change to the way we classify property, infrastructure, agricultural and credit asset classes to better reflect their risk profile.

Traditionally, we’ve classified investments in property, infrastructure, agricultural investments and credit as being ‘growth’ investments. However, we’ll now classify these investments as ‘mid risk’ assets to better reflect their risk profile. The effect of this change is investments in these asset classes will be classified as 50% growth and 50% defensive rather than 100% growth, which will change the split between growth and defensive assets for some of our investment options (that is, the percentage of growth assets will reduce).

You can see the current strategic asset allocation for each of our investment options, and the changes to the percentage split between growth and defensive assets due to the way investments are classified, in the table below. Please note Equity Strategies, Private Equity, Agricultural and Credit have previously displayed collectively as Growth Alternatives.  

Changes to benchmark asset allocations (figures in %).

 

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For the above investment options other than Core Strategy:

• the allocation to individual asset classes may vary by +/-5% from the benchmark allocation shown, but not below 0% or more than 100% for an individual asset class;
• where an option does not have a benchmark allocation to Cash securities, an allocation of up to 5% may be introduced; and
• the overall allocation to growth assets and defensive assets may vary by +/- 10% from the allocation shown.

Changes in asset allocation for Rest’s Investment options effective 30 September 2017

The benchmark asset allocations for Rest’s investment options are reviewed annually.  This means that we review the mix of asset classes for each investment option with the aim of better achieving the investment return objectives.

New benchmark asset allocations for Capital Stable, Balanced, Diversified, High Growth and Core Strategy investment options will be effective 30 September 2017 and are shown in the table below.

These asset allocation changes included:

• decreased allocation to Australian and Overseas shares
• decreased allocation to Property
• increased allocation to Cash (Diversified and Core Strategy)
• increased allocation to Growth Alternatives.

Changes to benchmark asset allocations (figures in %)
 

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Return objective for Cash Plus option amended

The return objective for the Cash Plus option will be amended from 30 September 2017 to be measured on a pre-tax basis. The change will bring the return objective in line with those for all the other options which are currently being measured on a pre-tax basis.  From 30 September 2017, the return objective of the Cash Plus option will be:
 

•  Outperform the Bloomberg AusBond Bank Bill Index (before tax and after fees) over the short-term (rolling 2-year period).

Changes in asset allocation for Rest’s Investment options effective 1 October 2015

The benchmark asset allocations for Rest’s investment options are reviewed annually.  This means that we review the mix of asset classes for each investment option with the aim of better achieving the investment return objectives.

New benchmark asset allocations for Capital Stable, Balanced and Core Strategy investment options were effective 1 October 2015 and are shown in the table below. These asset allocation changes included:

• decreased allocation to Bonds
• increased allocation to Cash (Capital Stable and Balanced)
• increased allocation to Defensive Alternatives
• increased allocation to Growth Alternatives.

There will be no further changes to asset allocations as from 1 October 2016.

 

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Age 25 Insurance Reinstatement Changes

When you join Rest you are automatically provided with Death TPD and IP insurance cover, the cover you are provided with is referred to as “5 units of Basic Cover” (5 Units for Death, 5 units for TPD and 5 Units for IP).  Many members choose to retain this insurance cover; however some members opt to reduce the number of units of cover they have from 5 Units down to 4, 3, 2 or 1, whilst others choose to remove this cover completely.

Prior to 1 December 2015, Rest offered its members who were under 25 an “Automatic Reinstatement” of Insurance Cover on their 25th Birthday (subject to the member meeting employment eligibility requirements) if they had chosen to reduce or cancel any or all of their cover.  Cover was reinstated effective from the first day of the month in which the employer contribution was received. 

We have under taken a review of this option with our insurer (AIA Australia) to ensure it continues to meet our member’s needs.

From 1 December 2015, Rest will now only automatically reinstate your Insurance Cover (Death TPD and IP) if you have zero units of Death, TPD and IP Cover (i.e. no active Insurance Cover)). If you have opted to alter your insurance by cancelling some of your cover but not all of it, we will no longer reinstate the inactive insurance options, as we have deemed that you have made an active choice in how you want to structure your Insurance Cover.

 

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Examples
   

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The policy terms and conditions for our Age 25 Reinstatement offering are now as follows:

For members who turn 25, if you have no insurance cover, irrespective of your employment status, we will automatically reinstate default Basic Cover (5 units of Death, TPD and IP cover) upon receipt of the first mandatory employer contribution received for you that relates to a period of employment beginning on or after the beginning of the month in which you turn 25 and before you turn 26.

You must be in Active Employment on the day your cover starts. If you are not in Active Employment on this date, Limited Cover will apply until you return to being in Active Employment for 2 consecutive months.

If we don’t receive a mandatory employer contribution before you turn 26, then this offer will expire and be unavailable to you in the future.  This means that to obtain insurance cover, you will have to apply and provide the required information to the insurer who will assess the request for cover.

If you have any questions on this option please don’t hesitate to contact us.

Summary of Significant Event Disclosure 2014-2016

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