At Rest, our mission is to help our members achieve their personal best retirement outcome. The key to recognising this is that there is no uniform ‘ideal’ retirement. Each member’s personal best will look different to other members’ depending on their circumstances. In order to achieve their personal best, we also understand members have different needs and ways of getting there.
It was with this mission in mind that we launched three new index investment options in December 2018: Balanced – Indexed, Australian Shares – Indexed and Overseas Shares – Indexed. We launched these options for those members who wanted more choice in how they grow their retirement savings in a low-cost way.
These 0.0 per cent, per annum investment-management fee* options are passively managed and aim to perform in line with the market return of specific indices.
Balanced – Indexed invests in a mixture of growth and defensive assets in line with indexes that measure the performance of overseas shares (45 per cent), Australian shares (30 per cent), bonds (20 per cent) and cash securities (five per cent).
Australian shares – Indexed aims to perform in line with the benchmark S&P/ASX300 Accumulation Index, while Overseas shares – Indexed aims to perform in line with the MSCI World ex-Australia ex-Tobacco Net Dividends Reinvested Index.
Industry and member recognition
A little over a year since the introduction of these new investment options, we are honoured to have received a Money magazine Best of the Best 2020 award for our Balanced – Indexed investment option, which was the gold winner in the ‘Cheapest Balanced Products ($20,000 balance)’ category.
But more importantly, these recently launched investment options have also proved popular with our members.
Since their launch, $265 million our members’ funds have been invested in these options, with around $105 million in the Balance-Indexed option, and approximately $80 million in both Australian Shares – Indexed and Overseas Shares – Indexed.
The introduction and positive take-up of these investment options is just one example of how, at Rest, we are constantly innovating to help members achieve their personal best.
For more information about our indexed investment options, visit Rest’s website at rest.com.au/indexed-investment-options.
* Rest’s administration fee of $1.30 per week and 0.1 per cent of a member’s account balance each month, and a buy spread still apply. Members with insurance will pay premiums.