Rest closes 2 investment options to new members

Rest has announced it will close its bonds and shares option to new members from 30 September 2023. 

In an investment update, the $70 billion fund said any request by existing members to switch funds into that option must be received by 4pm on Wednesday, 27 September. 

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Members with money invested in these options prior to the closure may continue with certain transactions on the relevant options and will be contacted separately with more details. 

The bonds option lost 2 per cent over the year to 31 July while the shares option returned 14.7 per cent.

Its default MySuper Core Strategy option returned 9.2 per cent over the last financial year with performance coming from overseas shares, agriculture, and Australian shares.

It also announced it has reduced investment costs for Core Strategy, Balanced, Diversified, High Growth, Cash, Shares, Australian Shares, and Overseas Shares. 

The total investment cost for Sustainable Growth, Bonds, and Property all increased while the Capital Stable,

Balanced Indexed, Australian Shares Indexed, and Overseas Shares Indexed remained the same. 

All of the final four have 0.00 per cent in investment fees. 

Property now has the highest total investment costs at 0.78 per cent, up from 0.67 per cent, followed by High Growth at 0.6 per cent, although this is reduced from 0.75 per cent.

Finally, the fund has updated its asset allocation across cash, debt, alternatives, infrastructure, property, Australian shares, and overseas shares. This affects it Core Strategy, Capital Stable, Balanced, Diversified, High Growth, Balanced Indexed, and Sustainable Growth options from 30 September.

On the default Core Strategy fund, cash, Australian, and overseas shares have all increased while debt, alternatives, infrastructure, and property have decreased. 

Changes in percentage weightings in Core Strategy asset allocation

Source: Rest, August 2023