Rest’s flagship investment option posts return above decade averages

The profit-to-member super fund’s MySuper default option has returned 9.85 per cent for the financial year 2024–25.

According to Rest, the return on its MySuper default investment option, Growth, was ahead of its long-term 10 and 20-year average return of 8.33 per cent per annum.

The super fund attributed listed shares as positive drivers of returns during FY25, while its investment options with higher listed shares allocations benefited.

Additionally, the default Balanced investment option for Rest’s Pension members provided a return of 9.21 per cent during the financial year, also above the average 10 and 20-year returns.

Rest’s Overseas Shares – Indexed and Sustainable Growth options delivered double-digit returns of 16.39 per cent and 14.93 per cent, respectively, while its Australian Shares – Indexed, Balanced – Indexed, and High Growth also reportedly delivered double-digit returns.

Kiran Singh, Rest’s interim co-CIO, said the Growth option’s strong result continues to exceed its investment objective of a return of CPI +3 per cent over rolling 10-year periods.

“At Rest, we are dedicated to growing our members’ retirement savings over the long-term and I’m pleased we’ve delivered these results for our members,” Singh said. “The dominant US technology stocks continued their surge through to mid-March, before pulling back with the broader market following the US government’s tariff announcements.”

Although the “Liberation Day” tariff announcements caused spikes of volatility across global equity and bond markets, Singh noted that both local and global markets “recovered strongly, regaining ground and ultimately reaching all-time highs as conditions remained favourable for growth, particularly in the US.”

“Locally, Australian banks outperformed while inflation continued to moderate and employment conditions improved,” Singh continued. “When it comes to listed markets, we continue to focus on investing in quality companies, a strategy which also helps see us through periods of high market and economic uncertainty.”

Unlisted assets in Rest’s portfolio continued to provide diversification and stability, along with reliable and steady incomes, according to the fund’s co-CIO Simon Esposito.

“Many of Rest’s longstanding investments in high-quality real assets have performed well this year, such as our investments in the energy infrastructure sector, including renewables,” Esposito said.

“This very long investment horizon allows us to take advantage of the benefits of real assets, and harness future-focused investment opportunities for our members.”

Esposito added that the fund’s diversified and long-term approach helped alleviate the impact from market volatility through “balanced and resilient portfolios”.

“This certainly helped us continue to deliver solid returns across an occasionally challenging year, and can in turn help our members feel secure and confident that their retirement savings continue to grow,” he concluded.