Despite ongoing volatility, financial markets closed the June quarter on a positive note, with Rest’s Core Strategy delivering gains of +3.35% over the June quarter and +5.96% for the year ending 30 June 2019, and +8.95% p.a. over the 10 years to end June.
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 rather than shorter-term growth. In recent times markets have appeared stretched, with heightened volatility. Therefore, we have adopted a more defensive position in Core Strategy than some other comparable funds^, with a reduced exposure to share markets (about 40% allocation as at 30 June 2019). Although this means that we will not benefit as much from any short-term share market growth, it also means we will not be as impacted should a significant downturn occur. Should markets fall we would also have cash reserves available to pick up assets at better value.
Rest has followed this risk-managed, long-term investment approach for many years and it has served members successfully during previous periods of market turmoil such as the GFC.
Members who wish to adopt a different risk profile to the Core Strategy are able to choose from a range of other options with higher or lower risk exposures.
Contact our Advice team to learn more or to discuss investment options.
Past performance is not an indicator of future performance.
^ Based on SuperRatings Fund Crediting Survey-SR 50 Balanced (60-76) Index.