REST Super: Investment Performance and Superannuation Fund Review

An Overview of the Company

REST Industry Super is one of the largest super funds in the country. The fund was originally setup in 1998 for workers of the retail industry (hence the name Retail Employees Superannuation Trust), but now anyone from any occupation can join this popular super fund. It is an industry super fund, which are well known by the catch phrase “run only to profit members and pays no commission to financial advisers” which is used in their advertising.

REST Super has won many awards and has returned solid long-term investments for members. They were awarded the Best Balanced Super Fund in 2012 and 2013 by Money magazine and have numerous other awards. The company prides itself on such features as low fees, many investment choices, long-term investment returns, variable insurance coverage and other key benefits. Their core MySuper option is available to anyone and is one of the most popular superannuation funds in the country. They also have a number of other products, including the popular REST Pension option which is another award-winning product specifically for those who have retired or are transitioning to retirement.
The REST Super logo.

Key Facts

Inception

The fund began in 1998 as the Retail Employees Superannuation Trust.

Funds under management

There size of this fund is approximately $24.4 billion.

Membership

REST Super has approximately 1.9 million members.

Other important features

  • Long term investment success – The Core Strategy investment option has returned more than 8% per year for the last 10 years.
  • There are 13 different investment options to choose from and this is more than most super funds allow.
  • The fees and charges for REST super fund members are also comparatively low.
  • Insurance options for death, total and permanent disablement and income protection.
  • Additional benefits for members, such as discounts on travel insurance, health insurance, free financial advice and reduce rate home loans.

REST Super Fund Investment Options

Core Strategy

This MySuper offering is setup to offer 24% defensive and 76% growth and is a mix of Australian and international shares, property infrastructure, cash, bonds and other assets.

Structured Options

There are five portfolios in this area that have a broad range of different investment strategies. These options include High Growth, Diversified, Capital Stable, Cash Plus and Balanced.

Member tailored options

This is for members who wish to have a more personalised portfolio. There are seven options including Overseas shares, Australian shares, Property, Shares (mixture), Cash, Bond and Basic Cash. These can also be mixed to form a custom personalised investment option.

REST Superannuation Investment Performance

Rest Super Returns
Investment Option 1 year 3 years (%pa) 5 years (%pa) 10 years (%pa)
Core Strategy 18.42% 9.37% 6.09% 8.11%
Cash Plus 3.73% 4.13% 3.68% 4.38%
Capital Stable 10.94% 7.21% 5.69% 6.27%
Balanced 14.86% 8.12% 5.73% 7.04%
Diversified 19.93% 9.10% 5.64% 8.05%
High Growth 23.13% 9.60% 5.50% 8.44%
Basic Cash 2.74% 3.56% n/a n/a
Cash 3.18% 3.91% 3.65% 4.41%
Bonds 7.46% 7.74% 8.01% 6.14%
Shares 29.91% 9.60% 5.09% 8.83%
Property 7.89% 6.15% 1.36% 6.08%
Australian Shares 24.78% 8.94% 5.68% 10.92%
Overseas Shares 32.95% 9.45% 3.72% 5.34%

(information correct at the end of financial year 2013)

Insurance

REST Superannuation offers automatic life stage insurance cover for eligible members and this insurance changes as you age to suit your changing needs. This is offered without medical checks or evaluations. Those who are self employed or are not from an approved employer are not elibible for this cover.

Additional insurance coverage is also available to members for a fee. This includes life insurance, total and permanent disablement insurance and income protection insurance. The fees for this insurance can be deduced automatically from your fund and you can change your level of cover whenever you require. You also remain covered if you change jobs. You can also transfer cover from another super fund (excluding income protection).

Additional Benefits

As one of the largest super funds in the country REST super can offer a number of additional benefits to members. These include free access to financial device, low rate home loans, low cost banking, discount travel insurance and private health insurance. They also provide education for members in the form of investment booklets and publications. Their online services are well-developed and you can make any changes you like via your online account access.

Annual Update

Each year REST Super informs members of their performance via publications and videos. The following is the annual update for the fund for 2013:

Fees and Charges

REST Super is known for being a low fee fund, but there are still some fees of which you need to be aware. There is no contribution fee, exit fee, termination fee or switching fee. However, there is an ongoing management costs of 0.1% per year of your account balance. There are also management costs which depend on your investment option. These costs range from 0.05% to 0.73% per year and do include performance fees as well. A management costs/member fee of $57.20 per year is also applicable.

REST Super Rating and Reviews

There is no doubt that REST Super is one of the best performing and most popular superannuation funds in the country. Being so large there are a number of complaints against the company related to mostly minor customer service issues, but this does have to be weighed up by the size of the company. The sheer amount of independent awards that REST Super has won suggests a reliable company that offers great financial returns.