The Retail Employees Superannuation Trust’s (REST) Core Strategy option returned 14.7 per cent for the 2005-06 financial year, the highest dollar distribution in the history of the fund.
A combination of conservative approach, accumulating cash and hedge strategies to offset increasing market volatility were cited as reasons for the positive result.
Neil Cochrane, chief executive of REST, believes that its approach will benefit members if the anticipated softening in equities occurs. “When the overdue market correction occurs, REST will be in an even stronger position, with its defensive asset allocation and outstanding money managers,” he said, also pointing out the fund’s $2.1 billion growth over the year to achieve a total of $10.5 billion.
As the default investment option, REST’s Core Strategy accounts for around 99 per cent of members.
