Statements and performance update: planning for tomorrow

It’s that time of year again, our annual statements have just been sent out to your employees with Rest, making it a good time for them to jump in and see how their super savings are tracking. For employees invested in the default, Core Strategy delivered a positive gain of 5.96% for the year ending 30 June. Over the 10 years to the end of June 2019, Core Strategy delivered 8.95% p.a. This long-term result is over and above the Core Strategy’s investment objective of CPI +3%.

Our philosophy – growing member’s savings over the long term

Rest’s investment approach is different from some other super funds as we actively manage our portfolio based on opportunities and risk, and focus on long-term performance above short-term growth.
 
This was evident in the way our Core Strategy was defensively positioned during the recent statement period in its exposure to shares compared to similar investment options of some of our peers. Although this means that we didn’t benefit as much from the short-term market growth, it also means we shouldn’t be impacted as severely if a significant downturn occurs in the future. We believe there are many factors in the market today suggesting it’s time for caution, such as the ongoing US-China trade war and slowing global growth.

Investing in infrastructure to deliver stable returns

Consistent with our investment philosophy, in 2019 we continued to invest in infrastructure and property assets to deliver stable long term returns for members. Such (direct or indirect) infrastructure investments included:
 
  • increasing our stake in Western Australia’s biggest renewable energy producer, Collgar Windfarm from 40% to 100% in June 2019. Collgar has been delivering strong returns for Rest members and the deal makes it one of the largest local renewable energy projects directly owned by an Australian super fund; and
  • acquiring a stake in Port of Long Beach, California which is part of the largest container port complex in the US.

Long-term track record of performance

Rest has followed this risk-managed, long-term investment approach for many years and it has served our members successfully during previous periods of market turmoil such as the Global Financial Crisis. According to SuperRatings, Rest Core Strategy’s performance ranked 3rd out of 21 with an annualised return of 7.92% compared to the median fund which returned 7.22% over the 20 years to 30 June 20191.  Past performance is not an indicator of future performance.

When reflecting on investment performance it’s important to remember that we apply the same philosophy to our business as you apply to yours: it’s not just about today, it’s about planning for tomorrow.

1 SuperRatings Fund Crediting Rate Survey – June 2019, SR50 Balanced (60-76) Index. Returns are net of investment fees, tax and implicit asset-based administration fees. Explicit fees such as fixed dollar administration fees, exit fees, contribution fees and switching fees are excluded. Ratings, awards or investment returns are only some of the factors that you should consider when deciding how to invest your super. SuperRatings Pty Limited does not issue, sell, guarantee or underwrite this product. Go to superratings.com.au for details of its ratings criteria.

This website is provided by Retail Employees Superannuation Pty Limited ABN 39 001 987 739, AFSL 24 0003 (Rest), trustee of Retail Employees Superannuation Trust ABN 62 653 671 394 (Fund), of which Rest Super, Rest Corporate, Rest Pension and Acumen are part. It contains general advice that has been prepared without taking account of your objectives, financial situation or needs. Before acting on the information or deciding whether to acquire or hold a product, consider its appropriateness and the relevant Product Disclosure Statement (PDS), which is available on this website. The cost of providing financial services is included in the fees in the Fund as disclosed in the relevant PDS. Rest and the Fund do not charge any additional fees or obtain any commissions for the advice provided. Rest’s employees are paid a salary and do not receive any commissions. They may receive a performance related bonus that takes into account the financial services provided. Super Investment Management Pty Limited (ABN 86 079 706 657, AFSL 240004), a wholly owned subsidiary company of Rest, manages some of the fund’s investments. Apart from this, Rest does not have any relationships or associations with any related body corporate or product issuer that might reasonably be expected to be capable of influencing Rest in providing financial services.

Rest personal advice is provided by Rest Advisers as authorised representatives of Link Advice Pty Ltd ABN 36 105 811 836 AFSL 258145

Awards and ratings are only one factor to consider when deciding how to invest your super. Further information regarding these awards can be found at rest.com.au/about-rest/awards. Past performance is not an indicator of future performance. SuperRatings Pty Limited does not issue, sell, guarantee or underwrite this product. Go to superratings.com.au for details of its ratings criteria. For further information about the methodology used by Chant West, see www.chantwest.com.au