Rest positions portfolio for geopolitical uncertainty

Rest has outlined how its core superannuation product performed in the March quarter, particularly navigating the Russia-Ukraine war.

The fund said that the war, which began in February, had shone a spotlight on the inflationary pressures and the importance of keeping a diverse portfolio to navigate markets.

It said exposure to energy and commodities within the equity portfolio and exposure to listed infrastructure and private assets such as property had helped the fund’s resilience. It also had a less than 0.1% exposure to Russian assets which had been reduced further where possible.

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Exposure to commodities and energy had also helped protect against the impact of inflation as had property as it displayed both growth and defensive characteristics.

In light of this, the Core fund had moved to a more defensive position by reducing equity exposure and increasing exposure to fixed income and cash.

Its Core Strategy had lost 1.45% during the quarter compared to 5.2% losses by global equity markets. Over one year to 31 March, 2022, the Core Strategy had returned 8.3%. For the Balanced option for pension funds, it had lost 1% over the quarter and returned 7.3% over the year.

Chief investment officer, Andrew Lill, said: “With these uncertain times, frequent and significant market moves can be expected. Rest’s experienced investment team have managed periods of market volatility many times before and fully expect to navigate them again while remaining focused on delivering long-term superior investment performance for our members”.

 




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