The double digit returns secured by the majority of Australian superannuation funds in 2004-05 have been reinforced by REST Superannuation which last week announced a 12.2 per cent earning and crediting rate for its so-called Core Strategy investment option.
The 12.2 per cent return sees REST distribute $886 million to members – the largest dollar distribution in the fund’s history.
Commenting on the distribution, REST chief executive, Neil Cochrane said that around 98 per cent of the fund’s members were invested in the Core Strategy and had received an average crediting rate of 9.85 per cent a year over three years and 8.58 per cent a year over five years.
He said that REST’s target return for the Core Strategy was inflation plus three per cent.
News of the REST distribution followed confirmation from InTech that growth-oriented funds had returned an average 13.1 per cent for the financial year following a particularly strong June.
It said the result has been driven principally by domestic asset sectors, with a very strong Australian sharemarket again providing the bulk of the financial year return.
InTech said Australian property and bonds had also contributed slightly above long-term expectations, with returns of 18.1 per cent for listed property trusts and 7.8 per cent for bonds.
