Another year of solid growth for REI Super
Investment markets experienced a degree of volatility during the 2017/18 financial year caused by a range of factors, but in the final analysis, most asset classes ended the financial year showing gains, translating into another solid year of investment returns for REI Super members.
Our Balanced option provided a return of 7.72% to members’ accounts for the year, and the longer term return is even stronger. Over the five years to 30 June 2018, the Balanced option has provided an average return to members of 8.59% per annum. These returns are after fees and taxes.
Pleasingly, our results are also in excess of the Balanced option’s primary performance objective of providing a net return to members of at least inflation plus 3% per annum.
Delivering another year of consistent returns is a clear demonstration of the benefits of having your super invested in a diversified investment portfolio. Members’ funds in our Balanced option are allocated and closely managed across a range of different types of assets, including Australian and overseas shares, listed and unlisted property, fixed interest and cash. This is the ninth straight year of positive returns generated since the GFC, including four years of double digit returns.
Read our investment update. Find out what is happening in the investment environment and REI Super’s portfolio.
Better value cover in insurance
I’m also pleased to confirm that we have successfully renegotiated members’ insurance arrangements with our insurer MetLife. Most members will get the benefit of a 5–6% reduction in premiums (according to their age) from 1 October 2018. This in turn means more money in your account for retirement.
Proposed changes to super in the Federal Budget
This year’s Federal Budget contained a number of proposals for changes to super. At the time of writing, they were still making their way through the parliamentary process. One of the proposals is to transfer ‘inactive’ accounts of $6,000 or less to the ATO. An inactive account would be defined as one that had not received a contribution for 13 months or more. You can keep your account active and avoid the impact of this proposed rule by making a contribution to your REI Super account – even a very small one.
Read more on the proposed changes from the Federal Budget.
New ‘automatic’ investment strategy for our members in retirement
During the year we introduced a new default investment strategy for REI Super Pension members. It provides members’ accounts with the potential for longer term growth combined with control of downside risk by investing across both the Balanced and Cash options in different proportions, depending on the member’s age. While this will not directly impact accumulation members, it will be a useful option for you when it is time to draw an income stream from your REI Super account.
Yours sincerely,
Mal Smith
Chief Executive Officer
Please note:
Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall.
This information has been prepared and published by REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL. 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general information of members of REI Super. It does not take into account any member’s individual financial objectives, financial situation or needs.
We recommend that you seek help from a licensed financial adviser before acting on any information contained in this newsletter. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies.
The REI Super Helpline and the REI Super website are provided by Mercer Outsourcing (Australia) Pty Ltd ABN 83 068 908 912 and Mercer Financial Advice (Australia) Pty Ltd (MFA) ABN 76 153 168 293, Australian Financial Services Licence (AFSL) #411766