Tuesday, 18th July, 2017
End of financial year results released by Rest Industry Super show a positive return to members of 11.07% for its Rest Core Strategy, for the year ending 30 June 2017. The Rest Pension Core Strategy returned 12.4% for the same period whilst the Rest Pension Balanced, the default investment option in Rest Pension returned 10.5%.
The results demonstrate the continuing strength of Rest’s active investment management approach to deliver long-term investment performance through the peaks and troughs of economic cycles. This is the eighth consecutive year of positive returns and the fourth year of double digit returns for members since the Global Financial Crisis with members in the Rest Core Strategy option benefiting from a 9.3% per annum return since 2009.
Rest General Manager Investments, Brendan Casey commented: “The strong performance of overseas and Australian shares was a key contributor to Rest’s investment performance over the past twelve months. Growth alternatives, comprising credit, equity strategies and agriculture also fuelled the solid returns for members over the financial year.
“Equity markets rose on the back of global economic recovery led by the United States and falling unemployment in the US spurred on by low inteRest rates and a growth in confidence.
“The United States, the world’s largest economy generated about 25% of global economic output in its third longest expansion since 1850’s with the US unemployment rate falling from 10% in 2009 to 4.3% currently, contributing to the strong performance of overseas shares.
“Income producing assets such as property and infrastructure also continue to contribute to short term investment performance.
“While we are delighted to deliver solid returns for members over the past twelve months our focus remains on delivering competitive investment performance over the long term.
“Low interest rates have meant that investors have been willing to pay more for assets that provide a steady income. We are also seeing a riskier global investment climate, as well as rising levels of household debt and lower housing affordability here in Australia. Together these factors have led Rest to reduce investment risk by changing our investments in the short term.
“In particular, we have trimmed our allocation to shares in Rest’s Core Strategy in favour of solid long term infrastructure assets such as Endeavour Energy and credit where the valuation was favourable. We also lifted our allocation to cash to maintain flexibility in the portfolio to take advantage of opportunities as they arise.”
Returns from Rest Core Strategy, Rest Pension Core Strategy and Rest Pension Balanced as at 30 June over the last 10 years are as follows:
