The fund's High Growth and Sustainable Growth investment strategies also excelled, producing returns of 14.09% and 14.08%, respectively. This performance underscores the benefits that members have reaped from favorable international share market activities over the past year.
Kiran Singh, Rest’s interim Co-Chief Investment Officer, attributed the fund’s success to the robust performance of global equity markets, especially in the United States. "Global share markets were stand-out performers – especially the US – during the past year," stated Singh, emphasizing that the easing of monetary policies by central banks played a significant role in the positive market response.
Singh noted that while equity valuations may seem high, they are currently supported by strong economic resilience and consistent earnings growth. "We expect central banks will continue to ease rates," he said, while acknowledging the need to remain vigilant regarding potential inflationary surprises that might alter rate predictions.
Looking forward, Singh expressed optimism about the long-term investment horizon of the fund. "I’m thrilled with the overall returns we’ve delivered to our 2 million Rest members during the past 12 months," he explained. "Strong investment returns over the short term help support our long-term investment goals, with most of our members many decades from retirement."
Alongside Singh, Simon Esposito, also serving as Rest’s interim Co-Chief Investment Officer, shared the fund's strategic focus on significant long-term trends that are likely to impact investment landscapes. These five megatrends include decarbonisation, deglobalisation, demographics, digitalisation, and evolving debt and central bank policies.
Esposito elaborated on the necessity for investors to adopt a selective approach in asset allocation given the complexities of these megatrends. "Thanks to the influence of these megatrends, we believe investors won’t be able to just rely on a uniform increase in valuations across all assets, but will need to be more selective to be successful," he explained.
To capitalize on these trends, Rest is proactively seeking investment opportunities that promise substantial long-term benefits for its members. A notable example includes their recent $1 billion commitment to Quinbrook Infrastructure Partners, aimed at enhancing their exposure to sustainable and large-scale data centers in both the United States and Queensland.
Moreover, as a response to deglobalisation trends, Rest is redirecting its investment focus into industrial properties. The fund has expanded its collaboration with Barings, resulting in a shared portfolio of approximately 475,000 square meters of leasable industrial space in prime areas throughout Sydney and Melbourne.
The insights and strategies shared by the leadership of Rest Superannuation demonstrate an ongoing commitment to not only delivering strong returns for their members but also adapting to changing market conditions and future trends. As highlighted in the original report by Yasmine Raso on January 7, 2025, Rest Super is positioned for continued growth and member benefits in the years ahead.
