wednesday 18 July 2018


Rest, one of Australia’s largest superannuation funds, has delivered a positive return to members for the ninth consecutive year, demonstrating the strength of its active investment management approach over the long term.
 
The Rest Core Strategy delivered a return of 8.76 per cent for the year ending 30 June 2018, according to financial results released today.
 
These results amount to around a 105% per cent cumulative return for the Core Strategy during the past 10 years and a 52 per cent cumulative return during the past five years.
 
The Rest Pension Core Strategy returned 9.30 per cent for the year ending 30 June 2018, while the Rest Pension Balanced returned 6.76 per cent.
 
Rest’s General Manager Investments Dr Brendan Casey said that shares again made the greatest positive contribution to returns during the past 12 months, with property and credit also performing strongly.
 
“Economic growth in the US continued to gain momentum, particularly towards the end of the year, as sizeable tax cuts and additional government spending filtered through to the broader economy. This is translating into robust corporate earnings and a buoyant job market in the US,” Dr Casey said.
 
“Despite dropping more than 10 per cent in the first quarter of 2018, the US S&P 500 Index performed exceptionally well to end up 12.2 per cent for the year.
 
“Rising interest rates in the US helped push the Australian dollar down to 74 US cents by 30 June. This further boosted Rest’s international equities performance.
 
“The ASX 300 Accumulation Index also rebounded from a slow first quarter to gain 13.2 per cent for the year, showing remarkable resilience to ongoing US-China trade tensions, cooling domestic property markets, and the impact of the Financial Services Royal Commission on bank shares.”
 
Dr Casey said Rest’s acquisition of a $900 million stake upon completion of the $2.7 billion, 50-level Quay Quarter Tower in Sydney’s CBD was another exciting investment highlight for the year.
 
“This premium-grade property is likely to be one of Australia’s best office buildings and is expected to generate strong net returns for our members over the long-term,” he added.
 
“Rest also introduced private equity as an asset class within several of our investment options. This will provide members invested in those options with exposure to an international portfolio of unlisted private businesses.”
 
Dr Casey said while global economic momentum and corporate profitability is continuing to gather pace, several risks needed to be monitored carefully. These include ongoing geopolitical turbulence, tighter global monetary policy, high corporate and household debt levels, and slowing China growth.
 
“Most markets are already trading above their long-term average valuations, meaning they would be highly susceptible to bouts of volatility when you factor in these risks,” he said. 
 
“We see good reason to keep our relatively defensive positions in place. Rest currently holds around 11 per cent of our Core Strategy in cash and around 42 per cent in Australian and overseas shares.”

Returns from Rest Core Strategy, Rest Pension Core Strategy and Rest Pension Balanced as at 30 June during the past 10 years are as follows:
 
  10-year 7-year 5-year 3-year 1-year
  (% pa) (% pa) (% pa) (% pa) (% pa)
Rest Core Strategy 7.44 8.95 8.81 7.14 8.76
Rest Pension Core Strategy 8.14 9.74 9.43 7.65 9.30
Rest Pension Balanced 7.37 8.39 7.95 6.30 6.76


   

Rest – fund option returns#
 
  10-year 7-year 5-year 3-year 1-year
Investment Options (% pa) (% pa) (% pa) (% pa) (% pa)
Core Strategy 7.44 8.95 8.81 7.14 8.76
Cash Plus 2.94 2.68 2.22 1.80 1.42
Capital Stable 5.67 6.08 5.59 4.42 4.53
Balanced 6.56 7.56 7.28 5.82 6.45
Diversified 7.54 9.34 9.31 7.44 8.71
High Growth 8.16 10.49 10.68 8.54 10.45
Cash 2.89 2.54 2.15 1.93 1.83
Bond 5.68 4.76 3.39 2.11 1.00
Shares 8.93 12.09 12.58 9.54 14.11
Australian Shares 8.78 10.73 11.84 11.19 16.74
Overseas Shares 8.34 12.64 12.63 7.95 11.95
Property 5.50 8.72 9.82 11.83 10.74
Basic Cash N/A 2.21 1.81 1.59 1.51


Rest Pension – Fund option returns#
 
  10-year 7-year 5-year 3-year 1-year
Investment Options (% pa) (% pa) (% pa) (% pa) (% pa)
Core Strategy 8.14 9.74 9.43 7.65 9.30
Cash Plus 3.50 3.15 2.60 2.14 1.66
Capital Stable 6.49 6.84 6.18 4.85 4.83
Balanced 7.37 8.39 7.95 6.30 6.76
Diversified 8.38 10.29 10.09 7.96 9.08
High Growth 8.97 11.44 11.49 9.12 10.93
Cash 3.48 3.04 2.57 2.29 2.16
Bond 6.63 5.51 3.95 2.43 1.15
Shares 9.61 12.97 13.34 9.80 14.73
Australian Shares 9.44 11.48 12.34 11.09 16.76
Overseas Shares 9.25 13.96 13.92 8.63 12.95
Property 6.17 9.75 10.86 12.97 11.84
Basic Cash N/A 2.60 2.11 1.85 1.69

                                   
                                                   -ENDS-


For further information, please contact:
 
Pauline Hayes
Corporate
Communications Manager
Pauline.Hayes@rest.com.au
t: (02) 9086 6348 m: 0458 815 252
Michael Mills
Corporate
Communications Specialist
Michael.Mills@rest.com.au
t: (02) 9275 7590 m: 0428 499 722


About Rest

Rest is one of Australia’s largest super funds by membership with $50 billion in funds under management as at 31 December 2017 and around 2 million members. Rest was awarded Best Fund Innovation 2017 at the Chant West 2017 Super Funds Awards and also recently won the Rainmaker SelectingSuper Innovation Award 2017 for Millennial Superannuation*.
 
*Ratings or awards are only one factor that you should consider when deciding how to invest your super. For more information about our awards, visit rest.com.au/ourawards; For further information about the methodology used by Chant West, see www.chantwest.com.au
 
#Returns are net of investment fees and tax except the Rest Pension investment options which are untaxed. Investment returns are at the investment option level and are reflected in the unit prices for those options. Returns for three, five, seven and ten-year periods are annualised returns. N/A applies to options running less than the indicated time periods. Past performance is not an indication of future performance.
 
This information doesn’t take into account your circumstances. So, before acting on it, you should consider whether it is appropriate for you.  Before making a decision about your super, please read the relevant Product Disclosure Statement (PDS) available at www.rest.com.au or call 1300 300 778.  This information is provided by the issuer, Retail Employees Superannuation Pty Limited, ABN 39 001 987 739 as trustee of REST (Retail Employees Superannuation Trust ABN 62 653 671 394). 


 

This website is provided by Retail Employees Superannuation Pty Limited ABN 39 001 987 739, AFSL 24 0003, trustee of Retail Employees Superannuation Trust ABN 62 653 671 394, of which Rest Super, Rest Corporate, Rest Select, 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.

Rest Advice is provided by Rest advisers as authorised representatives of Adviser Network Pty Limited AFS Licence 232729 ABN 25 056 310 699

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 www.superratings.com.au for details of its ratings criteria. For further information about the methodology used by Chant West, see www.chantwest.com.au