Where to invest: REST MySuper
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.
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.
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|