Tuesday, 18th July, 2017

End of financial year results released by REST Industry Super show a positive return to members of 11.07% for its REST Core Strategy, for the year ending 30 June 2017. The REST Pension Core Strategy returned 12.4% for the same period whilst the REST Pension Balanced, the default investment option in REST Pension returned 10.5%. 
 
The results demonstrate the continuing strength of REST’s active investment management approach to deliver long-term investment performance through the peaks and troughs of economic cycles.  This is the eighth consecutive year of positive returns and the fourth year of double digit returns for members since the Global Financial Crisis with members in the REST Core Strategy option benefiting from a 9.3% per annum return since 2009.
 
REST General Manager Investments, Brendan Casey commented: “The strong performance of overseas and Australian shares was a key contributor to REST’s investment performance over the past twelve months. Growth alternatives, comprising credit, equity strategies and agriculture also fuelled the solid returns for members over the financial year.
 
“Equity markets rose on the back of global economic recovery led by the United States and falling unemployment in the US spurred on by low interest rates and a growth in confidence.
 
“The United States, the world’s largest economy generated about 25% of global economic output in its third longest expansion since 1850’s with the US unemployment rate falling from 10% in 2009 to 4.3% currently, contributing to the strong performance of overseas shares.
 
“Income producing assets such as property and infrastructure also continue to contribute to short term investment performance.
 
“While we are delighted to deliver solid returns for members over the past twelve months our focus remains on delivering competitive investment performance over the long term. 
 
“Low interest rates have meant that investors have been willing to pay more for assets that provide a steady income. We are also seeing a riskier global investment climate, as well as rising levels of household debt and lower housing affordability here in Australia.  Together these factors have led REST to reduce investment risk by changing our investments in the short term.
 
“In particular, we have trimmed our allocation to shares in REST’s Core Strategy in favour of solid long term infrastructure assets such as Endeavour Energy and credit where the valuation was favourable. We also lifted our allocation to cash to maintain flexibility in the portfolio to take advantage of opportunities as they arise.”

Returns from REST Core Strategy, REST Pension Core Strategy and REST Pension Balanced as at 30 June over the last 10 years are as follows:
 
  10-year 7-year 5-year 3-year 1-year
  (% pa) (% pa) (% pa) (% pa) (% pa)
REST Core Strategy 6.11 9.06 10.68 7.38 11.07
REST Pension Core Strategy 6.71 9.95 11.63 7.86 12.40
REST Pension Balanced 6.26 8.78 9.74 7.34 10.5
 
 

REST – fund option returns#
 
  10 year 7  year 5 year 3 year 1 year
Investment Options (% pa) (% pa) (% pa) (% pa) (% pa)
Core Strategy 6.11 9.06 10.68 7.38 11.07
Cash Plus 3.28 3.14 2.67 2.24 2.21
Balanced 5.53 7.84 8.77 6.65 9.26
Capital Stable 5.21 6.47 6.76 5.29 6.97
Diversified 5.92 9.46 11.25 8.28 11.84
High Growth 6.11 10.44 12.84 9.30 13.71
Cash 3.21 2.94 2.42 2.11 1.93
Bonds 5.97 5.53 4.67 3.70 3.73
Shares 5.76 11.35 15.16 9.95 15.84
Australian Shares 5.63 10.26 12.97 8.18 13.98
Overseas Shares 5.06 11.53 16.19 10.62 16.69
Property 5.77 8.11 9.04 10.22 11.77
Basic Cash N/A 2.59 2.05 1.77 1.45



 
REST Pension – Fund option returns#
 
  10 year 7  year 5 year 3 year 1 year
Investment Options (% pa) (% pa) (% pa) (% pa) (% pa)
Core Strategy 6.71 9.95 11.63 7.86 12.40
Cash Plus 3.91 3.70 3.14 2.64 2.67
Balanced 6.26 8.78 9.74 7.34 10.50
Capital Stable 6.01 7.36 7.57 5.90 7.96
Diversified 6.62 10.50 12.45 9.04 13.28
High Growth 6.72 11.48 14.09 10.11 15.35
Cash 3.84 3.52 2.89 2.53 2.30
Bonds 6.98 6.44 5.41 4.28 4.33
Shares 6.12 12.21 16.38 10.48 17.54
Australian Shares 6.13 11.16 14.01 8.40 15.36
Overseas Shares 5.50 12.75 18.04 11.68 18.51
Property 6.46 9.11 10.06 11.24 12.92
Basic Cash N/A 3.07 2.41 2.09 1.75


                                                   -ENDS-

 
*Ratings or awards are only one factor that you should consider when deciding how to invest your super.  SuperRatings Pty Limited does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria. For further information about the methodology used by Chant West, see www.chantwest.com.au.
 
# Returns are net of investment fees and tax except the REST Pension investment options which are untaxed. Investment returns are at the investment option level and are reflected in the unit prices for those options.  Returns for three, five, seven and ten year periods are annualised returns.  N/A applies to options running less than the indicated time periods. Past performance is not an indication of future performance. 
 
This material doesn’t take into account your circumstances. So, before acting on it, you should consider whether it is appropriate for you.  Before making a decision about your super, please read the relevant Product Disclosure Statement available at www.rest.com.au. This information is provided by the issuer, Retail Employees Superannuation Pty Limited, ABN 39 001 987 739 as trustee of REST (Retail Employees Superannuation Trust ABN 62 653 671 394). Registered office: Level 7, 50 Carrington Street, Sydney NSW 2000.



 

This website is provided by Retail Employees Superannuation Pty Limited ABN 39 001 987 739, AFSL 24 0003 (Rest), trustee of Retail Employees Superannuation Trust ABN 62 653 671 394 (Fund), of which Rest Super, Rest Corporate, Rest Pension and Acumen are part. It contains general advice that has been prepared without taking account of your objectives, financial situation or needs. Before acting on the information or deciding whether to acquire or hold a product, consider its appropriateness and the relevant Product Disclosure Statement (PDS), which is available on this website. The cost of providing financial services is included in the fees in the Fund as disclosed in the relevant PDS. Rest and the Fund do not charge any additional fees or obtain any commissions for the advice provided. Rest’s employees are paid a salary and do not receive any commissions. They may receive a performance related bonus that takes into account the financial services provided. Super Investment Management Pty Limited (ABN 86 079 706 657, AFSL 240004), a wholly owned subsidiary company of Rest, manages some of the fund’s investments. Apart from this, Rest does not have any relationships or associations with any related body corporate or product issuer that might reasonably be expected to be capable of influencing Rest in providing financial services.

Rest personal advice is provided by Rest Advisers as authorised representatives of Link Advice Pty Ltd ABN 36 105 811 836 AFSL 258145

Awards and ratings are only one factor to consider when deciding how to invest your super. Further information regarding these awards can be found at rest.com.au/about-rest/awards. Past performance is not an indicator of future performance. SuperRatings Pty Limited does not issue, sell, guarantee or underwrite this product. Go to superratings.com.au for details of its ratings criteria. For further information about the methodology used by Chant West, see www.chantwest.com.au