End of financial year figures released today by REST Industry Super show a positive return to members of 13.29 per cent for its REST Super Core Strategy, the MySuper investment option, for the year ending 30 June 2014. The REST Pension Core Strategy returned 14.41 per cent and the REST Pension Balanced, the default investment option in REST Pension, returned 11.01 per cent for the same period.
These results demonstrate the continuing strength of REST’s investment approach, allowing the fund to generate competitive results for members through the peaks and troughs of an economic cycle. This is the second year in a row that REST Core Strategy has delivered double digit returns for members.
REST Chief Operating Officer Paul Sayer commented: “These strong results signal REST’s firm position as a high-performing industry fund, even throughout a tough economic environment.
“A robust share market was a key contributor to REST’s performance this year. Our overweight to shares, and in particular our bias to overseas shares, helped boost returns significantly and continues to be a fundamental component of REST’s investment strategy. Our Core Strategy’s average exposure to shares of 53 per cent contributed to almost 80 per cent of total return for the year.
“In addition to both our overseas and Australian share portfolios continuing to outperform their benchmarks, other asset classes including infrastructure, property, bonds and cash all contributed positively to overall returns.
“REST also looks beyond traditional asset classes to secure competitive returns while managing risks for members when justified. In 2008, we established a new asset class in credit securities which has been one of the best performing assets for REST members, returning almost 15 per cent per annum since it was established in late 2008.
“Whilst we are delighted with our results this year there is never any guarantee that the strong returns of the last two years will be repeated in future years. It’s more important to consider these latest results in the context of long-term performance, as this is what is crucial in helping our members achieve a comfortable lifestyle in retirement.
“Both REST Super Core Strategy, REST Pension Core Strategy and REST Pension Balanced have delivered consistently strong results for members over the last three, five and seven years, whilst keeping fees low.
“The REST Super Core Strategy, where the majority of REST Super members are invested, returned 10.60 per cent per annum over three years, 10.55 per cent per annum over five years, 5.58 per cent per annum over seven years and 8.08 per cent per annum over ten years for the period ending 30 June 2014. The REST Pension Core Strategy delivered 11.81 per cent per annum over three years, 11.79 per cent per annum over five years and 6.22 per cent over seven years for the period ending 30 June 2014. REST Pension Balanced delivered 10.29 per cent per annum over three years, 10.37 per cent per annum over five years, 5.79 per cent per annum over seven years and 7.98 per cent per annum over ten years for the period ending 30 June 2014.
“Our competitive long-term performance has been underlined by a raft of awards over the last 12 months, cementing REST’s position as one of the best performing funds in the industry.
“These accolades included Fund of the Year 2014 as well as Pension of the Year 2014 at the SuperRatings awards, Best Super Fund Manager and Best Pension Fund Manager at Money magazine’s 2014 Best of the Best awards, and Super Fund of the Year for 2014 at the Chant West/Conexus Financial Super Funds Awards.”
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