After returning -2.37% in its Core Strategy option for the 2022 financial year, the fourth negative return in its 34-year history, Rest has outlined what is next for the superannuation fund.
Rest said its Core Strategy weathered the inflation storm relatively well, returning -2.37% to 30 June, outperforming most major global share markets. For Pension members, the default, Balanced Option returned -1.11% and the Core returned -2.75%.
“For many, super is generally a long-term investment. With that in mind, we continue to focus on the end goal – maximising retirement savings for Rest members,” it told members in an investment update.
The super fund said it had confidence that many of its more inflation-resilient investments, like infrastructure, private equity, property and agriculture, would serve members well.
“Rest’s investments in these asset classes can provide important stability to an investment portfolio, especially in challenging times where share markets are volatile and fixed income returns are weaker.
“These types of assets typically generate steady income that tracks inflation, such as rent or toll payments.”
Rest said it currently expected to remain in a lower growth and higher inflation environment throughout the remainder of the calendar year.
“From an investment perspective, the conditions may be becoming more positive for those seeking to invest for the longer term such as our younger members.”
It also flagged that super funds might be able to acquire investments at cheaper prices, which had the potential to benefit members with higher returns in the future.
“Even in tough markets, there remain some good investment opportunities. The conditions will favour those who can identify and seize these opportunities and themes of tomorrow, like the transition to renewable energy.
“Rest’s Core Strategy remains on track to achieve its goals over the longer term, having delivered on average 8.06% each year over the past 10 years, staying well ahead of Australian inflation rates to help many members achieve their personal best retirement outcome.”