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 to how we categorise asset classes

Effective from 30 September 2021, we’re introducing a more simplified approach to the classification of asset classes within our investment options.

Our current eleven asset classes will be streamlined into seven ‘mega asset classes’, meaning asset class strategies with similar market characteristics and the same key underlying drivers of performance will be grouped together. This simpler structure will make it easier for members to understand their investments and enable Rest to more clearly define our investment strategy relative to the new Your Future, Your Super benchmarks.
 
Asset class categorisation prior to 30 September 2021 New ‘mega asset class’ categorisation from 30 September 2021
Australian Shares Australian Shares
Overseas Shares (including Equity Strategies) Overseas Shares
Private Equity
Property Property
Infrastructure Infrastructure
Bonds Debt
Sub Investment Grade Bonds
Cash Cash
Absolute Return Alternatives
Agriculture

Changes in asset allocations for Rest’s investment options effective 30 September 2021

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 Core Strategy, Capital Stable, Balanced, Diversified, High Growth and Sustainable Growth investment options will be effective from 30 September 2021 and are shown in the table below.

Benchmark asset allocations prior to 30 September 2021
Asset Classes Core Strategy Capital Stable Balanced Diversified High Growth Sustainable Growth
Australian Shares 24% 11% 17% 25% 30% 32.5%
Overseas Shares 24% 10% 17% 25% 32% 40%
Private Equity 3% 0% 2% 4% 5% 0%
Equity Strategies 5% 3% 4% 5% 6% 0%
Property 9% 7% 8% 9% 8% 3%
Infrastructure 11% 7% 8% 11% 10% 2%
Cash 4% 17% 11% 3% 0% 4.5%
Bonds 10% 31% 18% 9% 0% 18%
Sub Investment Grade Bonds 6% 7% 8% 6% 6% 0%
Absolute Return 3% 7% 7% 3% 3% 0%
Agriculture 1% 0% 0% 0% 0% 0%
New benchmark asset allocations effective 30 September 2021
Asset Classes Core Strategy Capital Stable Balanced Diversified High Growth Sustainable Growth
Australian Shares 23% 10% 16% 24% 32% 34%
Overseas Shares 32% 11% 21% 31% 40% 37%
Property 11% 12% 11% 12% 10% 8%
Infrastructure 10% 12% 11% 12% 10% 8%
Debt 16% 27% 21% 14% 5% 10%
Cash 4% 22% 14% 4% 0% 3%
Alternatives 4% 6% 6% 3% 3% 0%
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; and
  • where an option does not have a benchmark allocation to Cash securities, an allocation of up to 5% may be introduced.
 
We’re also changing the asset allocation ranges for our Core Strategy and Sustainable Growth options to better position these investment options for expected changes in markets and economic conditions.
Asset class categorisation Core Strategy
Prior to 30 September 2021 New from 30 September 2021 Asset allocation range prior to 30 September 2021 New asset allocation range from 30 September 2021
Australian Shares Australian Shares 10-45% 10-45%
Overseas Shares (including Equity Strategies) Overseas Shares 10-45% 10-45%
Private Equity 0-10%
Property Property 0-25% 0-25%
Infrastructure Infrastructure 0-20% 0-25%
Bonds Debt 5-50% 5-50%
Sub Investment Grade Bonds
Cash Cash 0-25% 0-25%
Absolute Return Alternatives 0-25% 0-15%
Agriculture 0-10%
Asset class categorisation Sustainable Growth
Prior to 30 September 2021 New from September 30 2021 Asset allocation range prior to 30 September 2021 New asset allocation range from 30 September 2021
Australian Shares Australian Shares 27.5-37.5% 29-39%
Overseas Shares Overseas Shares 35-45% 32-42%
Property Property 0-8% 3-13%
Infrastructure Infrastructure 0-7% 3-13%
Bonds Debt 13-23% 5-15%
Cash Cash 0-9.5% 0-8%
Changes to Standard Risk Measure and Risk Levels

Effective 30 September 2021, we’re changing the Standard Risk Measure and Risk levels for our Core Strategy, Capital Stable, Balanced and Diversified investment options.

These changes are largely to reflect the continued low interest rate environment and the outlook for lower investment returns over the longer term.
 
Option Current Standard Risk Measure Proposed Standard Risk Measure Current Risk Level Proposed Risk Level
Core Strategy 5 6 Medium to high High
Capital Stable 3 4 Low to medium Medium
Balanced 4 5 Medium Medium to high
Diversified 5 6 Medium to high High
Change to investment fees for Rest’s investment options for 2021-22

At the end of each financial year, Rest reviews the investment fees members pay for each Rest investment option.  Actual costs from the past year are used to forecast the estimated investment fee for the coming financial year.
 
Estimated investment fees for Sustainable Growth, Bonds, Shares, Australian Shares and International Shares have reduced compared to 2020-21 estimates.

Estimated investment fees for Core Strategy, Balanced, Diversified, High Growth, Cash and Property have increased compared to 2020-21 estimates. 

Estimated investment fees for Capital Stable, Balanced – Indexed, Australian Shares – Indexed and International Shares – Indexed remain the same.

Changes to estimated investment fees for 2021-22 are shown in the table below.
Investment option
Rest Super, Rest Corporate, Acumen and Rest Pension - Transition to Retirement
 
(A)
Estimated investment fees (including performance-related fees) (pa)
(B)
Estimated performance-related fees (pa)
(C)
Estimated indirect cost ratio (pa)
(A) + (C)
Total estimated investment cost (pa)
Core Strategy 0.57% 0.07% 0.05% 0.62%
Capital Stable 0.36% 0.01% 0.05% 0.41%
Balanced 0.49% 0.04% 0.05% 0.54%
Balanced-Indexed 0.00% 0.00% 0.00% 0.00%
Diversified 0.62% 0.08% 0.05% 0.67%
High Growth 0.70% 0.10% 0.05% 0.75%
Sustainable Growth 0.32% 0.00% 0.04% 0.36%
Cash 0.03% 0.00% 0.00% 0.03%
Bonds 0.15% 0.00% 0.02% 0.17%
Shares 0.58% 0.03% 0.00% 0.58%
Property 0.56% 0.00% 0.18% 0.74%
Australian Shares 0.55% 0.01% 0.00% 0.55%
Australian Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Overseas Shares 0.61% 0.05% 0.00% 0.61%
Overseas Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Investment options
Rest Pension - Retirement Account
(A)
Estimated investment fees (including performance-related fees) (pa)
(B)
Estimated performance-related fees (pa)
(C)
Estimated indirect cost ratio (pa)
(A) + (C)
Total estimated investment cost (pa)
Core Strategy 0.57% 0.07% 0.05% 0.62%
Capital Stable 0.36% 0.01% 0.05% 0.41%
Balanced 0.48% 0.05% 0.05% 0.53%
Balanced-Indexed 0.00% 0.00% 0.00% 0.00%
Diversified 0.61% 0.08% 0.05% 0.66%
High Growth 0.68% 0.10% 0.05% 0.73%
Sustainable Growth 0.32% 0.00% 0.04% 0.36%
Cash 0.03% 0.00% 0.00% 0.03%
Bonds 0.15% 0.00% 0.02% 0.17%
Shares 0.57% 0.04% 0.00% 0.57%
Property 0.56% 0.00% 0.18% 0.74%
Australian Shares 0.54% 0.03% 0.00% 0.54%
Australian Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Overseas Shares 0.61% 0.05% 0.00% 0.61%
Overseas Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Important changes 2019-20

Important changes 2019-20


Changes in asset allocation for Rest’s Investment options effective 28 September 2020

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 Core Strategy, Capital Stable, Balanced, Balanced – Indexed, Diversified, High Growth and Shares will be effective from 28 September 2020 and are shown in the table below.
 

  Core Strategy Capital Stable Balanced Balanced-Indexed Diversified High Growth Shares
Asset Class Current % Proposed % Current % Proposed % Current % Proposed % Current % Proposed % Current % Proposed % Current % Proposed % Current % Proposed %
Australian Shares 17 24 8 11 13 17 30 35 19 25 24 30 40 45
Overseas Shares 23 24 11 10 18 17 45 40 25 25 32 32 60 55
Equity Strategies 5 5 3 3 4 4     5 5 6 6    
Property 11 9 7 7 8 8     11 9 10 8    
Infrastructure 11 11 7 7 8 8     11 11 10 10    
Private Equity 3 3     2 2     4 4 5 5    
Agriculture 1 1                        
Credit 10 6 7 7 8 8     8 6 9 6    
Absolute Return 6 3 9 7 9 7     5 3 4 3    
Bonds 6 10 16 31 10 18 20 20 7 9        
Cash 7 4 32 17 20 11 5 5 5 3        

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

 

Changes to investment fees for Rest’s investment options for 2020-21

At the end of each financial year, Rest reviews the investment fees members pay for each Rest investment option. Actual costs from the past year are used to forecast the estimated investment fee for the coming financial year.

The challenging market conditions of the past financial year have meant that investment costs for some options were lower than estimated, due to factors such as reduced performance-related fees and reduced property purchasing costs.

 

Rest Super, Rest Corporate, Acumen and Rest Pension transition to retirement account members

  • Estimated investment fees for the Core Strategy, Capital Stable, Balanced, Diversified, High Growth, Basic Cash and Property have reduced compared to 2019-20 estimates.
  • Estimated investment fees for Bonds, Shares, Australian Shares and Overseas Shares have increased compared to 2019-20 estimates.
  • Estimated investment fees for Balanced-indexed, Cash, Australian Shares – Indexed and Overseas Shares – Indexed remain the same.

 

For Rest Pension retirement account members

  • Estimated investment fees for the Core Strategy, Capital Stable, Balanced, Diversified, High Growth, Basic Cash, Australian Shares and Property have reduced compared to 2019-20 estimates.
  • Estimated investment fees for Bonds, Shares and Overseas Shares have increased compared to 2019-20 estimates.
  • Estimated investment fees for Balanced-indexed, Cash, Australian Shares – Indexed and Overseas Shares – Indexed remain the same.


Changes to estimated investment fees for 2020-21 are shown in the tables below.

Investment option
Rest Super, Rest Corporate, Acumen and Rest Pension - Transition to Retirement
 
(A)
Estimated investment fees (including performance-related fees) (pa)
(B)
Estimated performance-related fees (pa)
(C)
Estimated indirect cost ratio (pa)
(A) + (C)
Total estimated investment cost (pa)
Core Strategy 0.55% 0.03% 0.06% 0.61%
Capital Stable 0.36% 0.02% 0.07% 0.43%
Balanced 0.46% 0.03% 0.08% 0.54%
Balanced-Indexed 0.00% 0.00% 0.00% 0.00%
Diversified 0.55% 0.03% 0.07% 0.62%
High Growth 0.62% 0.04% 0.06% 0.68%
Basic Cash 0.07% 0.00% 0.00% 0.07%
Cash 0.02% 0.00% 0.00% 0.02%
Bonds 0.19% 0.00% 0.03% 0.22%
Shares 0.61% 0.04% 0.00% 0.61%
Property 0.54% 0.00% 0.21% 0.75%
Australian Shares 0.60% 0.04% 0.00% 0.60%
Australian Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Overseas Shares 0.62% 0.05% 0.00% 0.62%
Overseas Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Investment options
Rest Pension - Retirement Account
(A)
Estimated investment fees (including performance-related fees) (pa)
(B)
Estimated performance-related fees (pa)
(C)
Estimated indirect cost ratio (pa)
(A) + (C)
Total estimated investment cost (pa)
Core Strategy 0.54% 0.03% 0.06% 0.60%
Capital Stable 0.36% 0.02% 0.08% 0.44%
Balanced 0.44% 0.02% 0.08% 0.52%
Balanced-Indexed 0.00% 0.00% 0.00% 0.00%
Diversified 0.54% 0.03% 0.07% 0.61%
High Growth 0.61% 0.04% 0.06% 0.67%
Basic Cash 0.07% 0.00% 0.00% 0.07%
Cash 0.02% 0.00% 0.00% 0.02%
Bonds 0.19% 0.00% 0.03% 0.22%
Shares 0.59% 0.04% 0.00% 0.59%
Property 0.54% 0.00% 0.21% 0.75%
Australian Shares 0.55% 0.03% 0.00% 0.55%
Australian Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Overseas Shares 0.62% 0.05% 0.00% 0.62%
Overseas Shares - Indexed 0.00% 0.00% 0.00% 0.00%
The amount of investment fees, performance-related fees and indirect cost ratio will change from year to year. Past fees and costs are therefore not an indication of future fees and costs.
 
 Rest Super, Rest Corporate, Acumen and Rest Pension - Transition to Retirement
 
 
 Rest Pension - Retirement Account
Investment options Estimated property operating costs not included in investment costs (pa) Estimated borrowing costs not included in investment costs (pa) Estimated property operating costs not included in investment costs (pa) Estimated borrowing costs not included in investment costs (pa)
Core Strategy 0.06% 0.07% 0.06% 0.07%
Capital Stable 0.04% 0.06% 0.04% 0.06%
Balanced 0.04% 0.06% 0.04% 0.06%
Balanced-Indexed 0.00% 0.00% 0.00% 0.00%
Diversified 0.06% 0.07% 0.06% 0.07%
High Growth 0.06% 0.07% 0.06% 0.07%
Basic Cash 0.00% 0.00% 0.00% 0.00%
Cash 0.00% 0.00% 0.00% 0.00%
Bonds 0.00% 0.00% 0.00% 0.00%
Shares 0.00% 0.00% 0.00% 0.00%
Property 0.57% 0.59% 0.57% 0.59%
Australian Shares 0.00% 0.00% 0.00% 0.00%
Australian Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Overseas Shares 0.00% 0.00% 0.00% 0.00%
Overseas Shares - Indexed 0.00% 0.00% 0.00% 0.00%
Important changes 2018-19

Important changes 2018-19


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.
Important changes 2016-17

Important changes 2016-17


Changes in asset allocation for Rest’s Investment options effective 30 September 2017

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 investment options will be effective 30 September 2017 and are shown in the table below.

These asset allocation changes included:
  • decreased allocation to Australian and Overseas shares
  • decreased allocation to Property
  • increased allocation to Cash (Diversified and Core Strategy)
  • increased allocation to 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 14 13 21 19 26 24 19 17
Overseas Shares 12 11 21 18 30 25 38 32 29 23
Property 5 5 7 6 9 8 10 9 11 9
Infrastructure 4 4 5 6 7 8 7 8 6 8
Growth Alternatives 9 10 10 14 11 17 12 20 13 19
Total Growth Assets 38 38 57 57 78 77 93 93 78 76
Defensive Alternatives 14 14 13 13 9 9 7 7 10 10
Bonds 16 16 10 10 7 7 - - 6 6
Cash Securities 32 32 20 20 6 7 - - 6 8
Total Defensive Assets 62 62 43 43 22 23 7 7 22 24


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.
 

Return objective for Cash Plus option amended

The return objective for the Cash Plus option will be amended from 30 September 2017 to be measured on a pre-tax basis. The change will bring the return objective in line with those for all the other options which are currently being measured on a pre-tax basis.  From 30 September 2017, the return objective of the Cash Plus option will be:
 

  •  Outperform the Bloomberg AusBond Bank Bill Index (before tax and after fees) over the short-term (rolling 2-year period).
Important changes 2015-16

Important changes 2015-16


Changes in asset allocation for Rest’s Investment options effective 1 October 2015

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 and Core Strategy investment options were effective 1 October 2015 and are shown in the table below. These asset allocation changes included:
  • decreased allocation to Bonds
  • increased allocation to Cash (Capital Stable and Balanced)
  • increased allocation to Defensive Alternatives
  • increased allocation to Growth Alternatives.
There will be no further changes to asset allocations as from 1 October 2016.

 
Asset Classes Capital Stable Balanced Core Strategy
Old New Old New Old New
Australian Shares 8 8 14 14 19 19
Overseas Shares 12 12 21 21 29 29
Property 5 5 7 7 11 11
Infrastructure 4 4 5 5 6 6
Growth Alternatives 6 9 8 10 10 13
Total Growth Assets 35 38 55 57 75 78
Defensive Alternatives 11 14 11 13 9 10
Bond 27 16 17 10 10 6
Cash 27 32 17 20 6 6
Total Defensive Assets 65 62 45 43 25 22
 
 

Age 25 Insurance Reinstatement Changes

When you join Rest you are automatically provided with Death TPD and IP insurance cover, the cover you are provided with is referred to as “5 units of Basic Cover” (5 Units for Death, 5 units for TPD and 5 Units for IP).  Many members choose to retain this insurance cover; however some members opt to reduce the number of units of cover they have from 5 Units down to 4, 3, 2 or 1, whilst others choose to remove this cover completely.

Prior to 1 December 2015, Rest offered its members who were under 25 an “Automatic Reinstatement” of Insurance Cover on their 25th Birthday (subject to the member meeting employment eligibility requirements) if they had chosen to reduce or cancel any or all of their cover.  Cover was reinstated effective from the first day of the month in which the employer contribution was received. 

We have under taken a review of this option with our insurer (AIA Australia) to ensure it continues to meet our member’s needs.

From 1 December 2015, Rest will now only automatically reinstate your Insurance Cover (Death TPD and IP) if you have zero units of Death, TPD and IP Cover (i.e. no active Insurance Cover)). If you have opted to alter your insurance by cancelling some of your cover but not all of it, we will no longer reinstate the inactive insurance options, as we have deemed that you have made an active choice in how you want to structure your Insurance Cover.

 
Examples
 
Death Units TPD Units IP Units Reinstatement Description
No Cover No Cover No Cover Yes 5 Units of Death, TPD and IP will be reinstated
No Cover 5 Units 5 Units No Death cover will not be reinstated
No Cover No Cover 5 Units No Death and TPD cover will not be reinstated
5 Units 5 Units No Cover No IP cover will not be reinstated.
 

The policy terms and conditions for our Age 25 Reinstatement offering are now as follows:
 

For members who turn 25, if you have no insurance cover, irrespective of your employment status, we will automatically reinstate default Basic Cover (5 units of Death, TPD and IP cover) upon receipt of the first mandatory employer contribution received for you that relates to a period of employment beginning on or after the beginning of the month in which you turn 25 and before you turn 26.

You must be in Active Employment on the day your cover starts. If you are not in Active Employment on this date, Limited Cover will apply until you return to being in Active Employment for 2 consecutive months.

If we don’t receive a mandatory employer contribution before you turn 26, then this offer will expire and be unavailable to you in the future.  This means that to obtain insurance cover, you will have to apply and provide the required information to the insurer who will assess the request for cover.

If you have any questions on this option please don’t hesitate to contact us.

Summary of Significant Event Disclosure 2014-2016


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