INVESTING

Where to invest: REST MySuper

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About the fund

The REST super fund started life in 1988 as the Retail Employees Super Trust, dedicated to serving employees in the retailing sector. Since then it has grown to $40 billion with more than 2 million members from almost every industry across the country. But what makes it stand out is a near relentless focus on long-term performance and low fees, which is why it is one of Australia's most highly awarded super funds.

What it offers

REST offers 13 investment choices, five of which are diversified options and eight of which are asset-class- specific options. Its major diversified growth option, known as its Core Strategy (80% invested in shares and property), is its MySuper option, which charges fees of 0.92%.

REST also offers a full range of life, TPD and income protection insurances, retirement products and access to financial advice. But where REST is making its mark is technology, whether through automated advice or being the first super fund in Australia to offer the Acorns smartphone app, which allows members to divert the small change from micro paypass payments into their REST super fund account.

Investment performance

A member who invested $10,000 in REST's Core Strategy MySuper option 10 years ago would now have $18,850 in their account, which is $2600 more than if they'd invested in an average fund that achieved the SelectingSuper MySuper default index. Over this period REST MySuper earned 6.5%pa compared with the index's 5%pa. REST has beaten the market index in nine of the 10 years.

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Rainmaker SelectingSuper's conclusion

REST easily justifies its AAA rating. It is a regular category finalist and winner in the SelectingSuper awards and has won the long-term performance award three times in the past six years.

Key fund data

Size $39 billion   5-year performance 8.6% pa as at June 30, 2016 after fees
SelectingSuper rating AAA   Investment choices 13
Fees 0.9% in the MySuper option   Insurance choices 33

Alex Dunnin is director of research at Rainmaker Information, publisher of SelectingSuper.

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Alex Dunnin is director of research at Rainmaker Information, publisher of Money magazine, Financial Standard and Selecting Super.
Comments
K moore
January 11, 2017 5.40pm

Does this mean that it attained 8.6% each year for the last 5 years

John
January 11, 2017 8.51pm

Definitely not exactly 8.6% each year as it is a norm that the performance goes up and down every year. My understanding is that it is the "average" performance over the last 5 years. That means that at the end of 5 years, your money will be increased as if the return is 8.6% each year.

Peter Last
January 11, 2017 9.27pm

Looks like an average of 8.6% pa compounding over the last 5 years

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