What is happening with the share markets?

What REST members should consider

• Stay focused on the long term
• REST’s long-term performance is very competitive. Volatility is a normal part of the investment cycle, and over the long term share markets tend to rise. History shows that share markets recover from downturns
• Your pension / super is a long term investment and weathering the short-term volatility can be a sensible approach
• Holding onto your investment means that you have the opportunity to recoup any losses when share markets rebound.
• You could also review your cash-flow and pension including the amount and frequency of your income with the help of a financial adviser, who can provide information and guidance based on your personal circumstances.
• Remember that past performance is not an indicator of future performance
   

What is happening with the share markets?

The recent share market volatility has impacted everyone’s super where they have some investments in share markets.

This share market activity has been caused by a combination of investor nervousness around the outlook for global economic growth, concerns around the ability of many European countries such as Greece, Ireland, Italy and Spain to repay their debts and the downgrading of the US’s long-term credit-rating from AAA to AA+ by Standard & Poors.

That said, the Australian economy has performed relatively well primarily due to the linkages that exist with the high growth economies in Asia and the fact that we have much lower debt levels than other countries.

What is REST doing?

REST will maintain its current investment approach. We are backed by a team of investment professionals and in periods of volatility we’ve often been able to identify good investment opportunities that otherwise wouldn’t be available. Share markets go up and down, which is a normal part of investing, and our long-term focus of delivering strong, long-term returns will remain the same.

Remember, REST Industry Super has been ranked the top performing fund over the 10 years to June 2011 by the SuperRatings Survey comprehensive investment review of multi-employer superannuation funds.

Respected super fund research and consultancy firm Chant West also recently announced in their Media Release – June 2011 return that REST has been listed in the top three performing growth funds for the past seven years. These announcements follow an outstanding 2010-11 financial year for REST which saw it give a strong return for its Core Strategy to members of 9.56%^  and 10.71%~ for REST Pension members.

What will this mean for my superannuation?

You should make sure that you understand the return and risk profile of your investments. 

Stay focused on the long term and make sure that you understand the level of diversification that REST has in place for the investment options that you are invested in.

It’s important for members to remember to focus on returns over the longer term, rather than just one year returns. REST actively manages its investments with a view to achieving strong, long-term investments for its members.
 

Options if you have a REST Pension

Your pension may be invested in assets like shares, property, bonds or cash – according to your investment instructions. Just like any other investment, your pension account balance can go up or down.

Many people have a fair proportion of their pension invested into the share market, via their super fund. The recent share market volatility is impacting the super and pension balances of many Australians and we understand that this can cause anxiety. Volatility is a normal part of the investment cycle, and over the long term share markets tend to rise.

Your pension / super is a long term investment and weathering the short-term volatility can be a sensible approach. You could also review your cash-flow and pension including the amount and frequency of your income with the help of a financial adviser, who can provide information and guidance based on your personal circumstances
 

I am getting close to retirement – I don’t have time to wait until the share market recovers. What do I do now?

Consider speaking with a Money Solutions* Coach.  Money Solutions is a team of licensed financial advisers who can tailor superannuation advice to your needs.  If you are a member of REST or Acumen we will pay for your first single super or pension related advice from Money Solutions. Money Solutions will advise you if there are any additional expenses before providing you with financial advice.  Any additional expense will be charged back to you and can be deducted from your REST account if the advice relates to super or retirement. Money Solutions does not receive commission from REST. Please phone 1300 300 778 and ask to speak to Money Solutions, who will be happy to assist you.

What happens now?

We will continue to work on behalf of members to find investments that meet the best needs for the Fund and its members. REST actively manages its investments with a view to achieving strong, long-term investments for its members.

* Money Solutions Pty Ltd (AFSL 258145). Money Solutions personnel are not representatives of the REST Trustee. Any financial product advice given by Money Solutions is provided under the Money Solutions AFSL. The Trustee does not accept liability for any loss or damage incurred by any person as a result of using products or services provided by Money Solutions.

^ End of Financial Year Returns for year-ending June 30, 2011 for REST Industry and REST Personal.
 Core strategy is the default option if you are a member of REST or REST Personal.
~ The Core Strategy return differs for REST Pension members, as returns for REST Pension are post investment management fees and are untaxed.

This material sets out general advice and has been prepared without taking into account your objectives, financial situation or needs. Before making a decision about our products based on this material, you should consider whether it is appropriate for your objectives, financial situation and needs; and consider the Product Disclosure Statement at www.rest.com.au or call 1300 300 778. Past performance is not necessarily an indicator of future performance. When you become a member of REST, you join the Retail Employees Superannuation Trust, Fund ABN 62 653 671 394. REST is issued by the Trustee, Retail Employees Superannuation Pty Limited ABN 39 001 987 739, AFSL 240003. Registered office: Level 6, 50 Carrington Street, Sydney NSW 2000.