Investment update for June quarter

Our latest quarterly REST Investment Update is now ready for viewing online. It’s an important one as we report our end of financial year results.
 
It makes an interesting read
 
As well as giving you an overview of how REST Core Strategy performed over the last quarter and the financial year, you’ll find other insightful snippets, such as:
  • Global economic growth optimism and low interest rates continue to drive the share markets
  • How rising household debt and lower housing affordability in Australia add to an overall uncertain climate
  • Investors who held on to a diversified portfolio of overseas shares from the bottom of the GFC in March 2009 to 30 June 2017 would have seen its value rebound about +124%
  • Global debt has swelled by over 45% since 2007 to US 150 trillion – how it could push risk closer to a ‘tipping point’
  • Our recent investment in power generation business – a quality asset servicing one of the largest and fastest-growing regional economies in NSW – a great addition to REST’s $2 billion infrastructure portfolio.
 
REST Core Strategy – highlights in the June update

Results since the GFC

We can report the eighth consecutive year of positive returns for our Core Strategy, and the fourth year of double digit returns since the global financial crisis (GFC) in 2009.
 
Since then, the Core Strategy has delivered an annualised return of +9.3% per annum – that’s a cumulative return to members of around 104% – and well above our investment objective of outperforming inflation by 3%.
 
June quarterly results
 
The REST Core Strategy produced another quarter of positive returns of +2.37% to close the financial year ending 30 June 2017 with the excellent return of +11.07%.
 
For our REST Pension members, the default Balanced option returned +2.32% and +10.5% for the same period respectively.
 
Biggest contributor for this financial year

Overseas shares were the largest contributor to returns followed by Australian shares and Growth Alternatives. Together, these three asset classes contributed to over 75% of this financial year’s financial performance.

The road ahead
 
Looking ahead, we’re seeing a riskier investment climate. While global growth has improved and unemployment rates are back near pre-GFC levels, global debt continues to rise.
 
As part of our active management approach, we’re always monitoring global markets so we can manage the risk of markets falling as well as capturing the opportunities this can bring. 
 
For our Core Strategy, this means we regularly review and adjust where we invest. In line with our view of some risks ahead in investment markets, we’ve trimmed our allocation to shares in favour of cash and infrastructure assets. 
 
Read the update, watch the video

For the full quarterly update visit here. For more insights, you can also watch the video, hosted by our very own Brendan Casey, General Manager Investments. What he has to say may be of interest to you, your business and your employees.
 
Past performance is not an indication of future performance.

 

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