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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 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 %).
 
Asset Classes Capital Stable Balanced Diversified High Growth Core Strategy
Old New Old New Old New Old New Old New
Australian Shares 8 8 13 13 19 19 24 24 17 17
Overseas Shares 11 11 18 18 25 25 32 32 23 23
Equity Strategies 3 3 4 4 5 5 6 6 5 5
Private Equity     2 2 4 4 5 5 3 3
Property 5 3.5 6 4 8 5.5 9 5 9 5.5
Infrastructure 4 3.5 6 4 8 5.5 8 5 8 5.5
Agricultural                 1 0.5
Credit 7 3.5 8 4 8 4 9 4.5 10 5
Total Growth Assets 38 32.5 57 49 77 68 93 81.5 76 64.5
Property   3.5   4   5.5   5   5.5
Infrastructure   3.5 3.5 4   5.5   5   5.5
Agricultural                   0.5
Credit   3.5   4   4   4.5   5
Absolute Return 14 9 13 9 9 5 7 4 10 6
Bonds 16 16 10 10 7 7     6 6
Cash Securities 32 32 20 20 7 5     8 7
Total Defensive Assets 62 67.5 43 51 23 32 7 18.5 24 35.5

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.
 

 

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