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Important Changes at Rest

Rest takes our responsibility to keep our members informed about any important changes or significant events to the Fund seriously.  This page provides further detail on our recent changes, for your information.

Important changes:

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.

Scroll the table to see the content

  Core Strategy Capital Stable Balanced Balanced-Indexed Diversified High Growth Shares
Asset Class Current % Proposed % Current % Proposed % Current % Proposed % Current % Proposed % Current % Proposed % Current % Proposed % Current % Proposed %
Australian Shares 17 24 8 11 13 17 30 35 19 25 24 30 40 45
Overseas Shares 23 24 11 10 18 17 45 40 25 25 32 32 60 55
Equity Strategies 5 5 3 3 4 4     5 5 6 6    
Property 11 9 7 7 8 8     11 9 10 8    
Infrastructure 11 11 7 7 8 8     11 11 10 10    
Private Equity 3 3     2 2     4 4 5 5    
Agriculture 1 1                        
Credit 10 6 7 7 8 8     8 6 9 6    
Absolute Return 6 3 9 7 9 7     5 3 4 3    
Bonds 6 10 16 31 10 18 20 20 7 9        
Cash 7 4 32 17 20 11 5 5 5 3        
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 to investment fees for Rest’s investment options for 2020-21

At the end of each financial year, Rest reviews the investment fees members pay for each Rest investment option. Actual costs from the past year are used to forecast the estimated investment fee for the coming financial year.

The challenging market conditions of the past financial year have meant that investment costs for some options were lower than estimated, due to factors such as reduced performance-related fees and reduced property purchasing costs.

Rest Super, Rest Corporate, Acumen and Rest Pension transition to retirement account members

  • Estimated investment fees for the Core Strategy, Capital Stable, Balanced, Diversified, High Growth, Basic Cash and Property have reduced compared to 2019-20 estimates.
  • Estimated investment fees for Bonds, Shares, Australian Shares and Overseas Shares have increased compared to 2019-20 estimates.
  • Estimated investment fees for Balanced-indexed, Cash, Australian Shares – Indexed and Overseas Shares – Indexed remain the same.

For Rest Pension retirement account members

  • Estimated investment fees for the Core Strategy, Capital Stable, Balanced, Diversified, High Growth, Basic Cash, Australian Shares and Property have reduced compared to 2019-20 estimates.
  • Estimated investment fees for Bonds, Shares and Overseas Shares have increased compared to 2019-20 estimates.
  • Estimated investment fees for Balanced-indexed, Cash, Australian Shares – Indexed and Overseas Shares – Indexed remain the same.

Changes to estimated investment fees for 2020-21 are shown in the tables below.

Investment option
Rest Super, Rest Corporate, Acumen and Rest Pension - Transition to Retirement
(A)
Estimated investment fees (including performance-related fees) (pa)
(B)
Estimated performance-related fees (pa)
(C)
Estimated indirect cost ratio (pa)
(A) + (C)
Total estimated investment cost (pa)
Core Strategy 0.55% 0.03% 0.06% 0.61%
Capital Stable 0.36% 0.02% 0.07% 0.43%
Balanced 0.46% 0.03% 0.08% 0.54%
Balanced-Indexed 0.00% 0.00% 0.00% 0.00%
Diversified 0.55% 0.03% 0.07% 0.62%
High Growth 0.62% 0.04% 0.06% 0.68%
Basic Cash 0.07% 0.00% 0.00% 0.07%
Cash 0.02% 0.00% 0.00% 0.02%
Bonds 0.19% 0.00% 0.03% 0.22%
Shares 0.61% 0.04% 0.00% 0.61%
Property 0.54% 0.00% 0.21% 0.75%
Australian Shares 0.60% 0.04% 0.00% 0.60%
Australian Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Overseas Shares 0.62% 0.05% 0.00% 0.62%
Overseas Shares - Indexed 0.00% 0.00% 0.00% 0.00%
 
 
Investment options
Rest Pension - Retirement Account
(A)
Estimated investment fees (including performance-related fees) (pa)
(B)
Estimated performance-related fees (pa)
(C)
Estimated indirect cost ratio (pa)
(A) + (C)
Total estimated investment cost (pa)
Core Strategy 0.54% 0.03% 0.06% 0.60%
Capital Stable 0.36% 0.02% 0.08% 0.44%
Balanced 0.44% 0.02% 0.08% 0.52%
Balanced-Indexed 0.00% 0.00% 0.00% 0.00%
Diversified 0.54% 0.03% 0.07% 0.61%
High Growth 0.61% 0.04% 0.06% 0.67%
Basic Cash 0.07% 0.00% 0.00% 0.07%
Cash 0.02% 0.00% 0.00% 0.02%
Bonds 0.19% 0.00% 0.03% 0.22%
Shares 0.59% 0.04% 0.00% 0.59%
Property 0.54% 0.00% 0.21% 0.75%
Australian Shares 0.55% 0.03% 0.00% 0.55%
Australian Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Overseas Shares 0.62% 0.05% 0.00% 0.62%
Overseas Shares - Indexed 0.00% 0.00% 0.00% 0.00%
The amount of investment fees, performance-related fees and indirect cost ratio will change from year to year. Past fees and costs are therefore not an indication of future fees and costs.
 
 
  Rest Super, Rest Corporate, Acumen and Rest Pension - Transition to Retirement Rest Pension - Retirement Account
  Estimated property operating costs not included in investment costs (pa) Estimated borrowing costs not included in investment costs (pa) Estimated property operating costs not included in investment costs (pa) Estimated borrowing costs not included in investment costs (pa)
Core Strategy 0.06% 0.07% 0.06% 0.07%
Capital Stable 0.04% 0.06% 0.04% 0.06%
Balanced 0.04% 0.06% 0.04% 0.06%
Balanced-Indexed 0.00% 0.00% 0.00% 0.00%
Diversified 0.06% 0.07% 0.06% 0.07%
High Growth 0.06% 0.07% 0.06% 0.07%
Basic Cash 0.00% 0.00% 0.00% 0.00%
Cash 0.00% 0.00% 0.00% 0.00%
Bonds 0.00% 0.00% 0.00% 0.00%
Shares 0.00% 0.00% 0.00% 0.00%
Property 0.57% 0.59% 0.57% 0.59%
Australian Shares 0.00% 0.00% 0.00% 0.00%
Australian Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Overseas Shares 0.00% 0.00% 0.00% 0.00%
Overseas Shares - Indexed 0.00% 0.00% 0.00% 0.00%
 

 

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