The Strategic Asset Allocation for an investment option sets out the ranges within which HESTA invests in different asset classes at a given time. In line with HESTA's objective of providing  strong long-term returns to members, HESTA has asset allocation investment ranges on a number of investment options. Through these ranges, HESTA is in a position to make immediate adjustments as changing investment conditions require. For example, if there was an expectation of a sudden downturn in the share market, HESTA may reduce its exposure to shares in favour of cash in order to better protect returns over that period. 

Strategic asset allocation and ranges (as at July 2009)

1. The Overseas Share Pool and Australian Share Pool are more aggressively managed than the shares component of other pools, including Your Choice Asset Classes, in that they have a higher weighting to smaller companies and no passive investments.
2. The currency exposures arising from international shares have a strategic hedge of 34.7% and active currency hedging.
3. The currency exposures arising from the international investments in infrastructure, property and private equity have a strategic hedge of 100%.
4. There is no strategic asset allocation to cash in any of the non-Cash Your Choice options. However, each manager's investment will hold a small percentage of their mandate in cash for portfolio management purposes. In addition, Your Choice: Australian Shares and Your Choice: International Shares may have exposure to cash under HESTA's protective strategies approach (see footnote 7).
5. The Australian Shares component of Eco Pool is selected via an environmental screen, while the International Shares component screen incorporates economic, environmental and social criteria. The direct property component is expected to be rated a minumum four green stars under the Green Building Council of Australia's guidelines.
6. Products other than the Core Pool may be excluded from having exposure to certain investments while the value of HESTA's investment is built up to a critical mass.
7. The figures shown in bold represent the strategic asset allocation at 1 July 2009. The unbolded figures represent the asset allocation investment ranges which may be used to implement protective strategies. Through these ranges, HESTA can make immediate adjustments to how the Fund invests as changing investment conditions require. For example, if there was an expectation of a sudden downturn in the share market, HESTA may reduce its exposure to shares in favour of cash in order to better protect returns over that period.

For more information download the HESTA investment choice guide.

HESTA Investment Managers (as at 18 January 2010)

These are the professional investment managers that HESTA uses to invest its members' funds. The Trustee of HESTA has the discretion to change its managers at any time in accordance with its investment strategies.

Asset Class	Investment Manager
Cash	Industry Funds Management Pty Ltd
	JP Morgan Chase Bank, N.A.
	National Australia Bank Limited
	Perpetual Investment Management Limited
	Members Equity Bank
Fixed Interest
	Industry Funds Management Pty Ltd
	ME Portfolio Management Limited
	Pacific Investment Management Company
	Western Asset Management Company Limited
Property	AEW Value Investors, L.P.
	Ashington Capital Limited
	BT Funds Management No 2 Limited
	Charter Hall Limited
	Diversified Management Ltd
	EG Funds Management
	Eureka Funds Management Limited
	Fortius Funds Management Pty Limited
	Franklin Templeton Investments Australia Limited
	Industry Superannuation Property Trust Pty Ltd
	IGIPT Pty Ltd
	Morgan Stanley & Co
	Queensland Investment Corporation
	Valad Funds Management Limited
International Shares	AXA Rosenberg Investment Management Asia Pacific Ltd
	Altrinsic Global Advisors, LLC
	Baillie Gifford Overseas Limited
	First State Investments (Hong Kong) Limited
	Generation Investment Management LLP
	Lazard Asset Management Pacific Co
	Marathon Asset Management (Australia) Limited
	Mondrian Investment Partners Limited
	Orbis Investment Management Limited
	State Street Global Advisors, Australia, Limited
	Taube Hodson Stonex Partners LLP
	Turner Investment Partners Pty Ltd
	Walter Scott & Partners Limited
	Wellington Management Company, LLP
Australian Shares
	Aviva Investors Australia Limited
	Blackrock Asset Management (Australia) Limited
	BT Investment Management No 2 Limited
	Citigroup Global Markets Australia Pty Limited
	Cooper Investors Pty Limited
	Eley Griffiths Group Pty Ltd
	Ellerston Capital Limited
	Greencape Capital Pty Ltd
	Industry Funds Management Pty Ltd
	Maple-Brown Abbott Limited
	Northcape Capital Pty Ltd
	Orbis Investment Management (Australia) Pty Limited
	Paradice Investment Management Pty Ltd
	Perpetual Investment Management Limited
	PM Capital Limited
	Renaissance Smaller Companies Pty Ltd
	Solaris Investment Management Limited
Infrastructure	Hastings Funds Management Limited
	Industry Funds Management Pty Ltd
	Stafford Timberland Limited
Private Equity	Adveq Management AG
	Coller International Partners V-A, L.P.
	Generation Investment Management LLP
	Industry Funds Management Pty Ltd
	Industry Super Holdings Pty Ltd
	Lexington Capital Partners VI-B, L.P.
	Newbury Partners LLC
	Oaktree Capital Management, L.P.
	Performance Equity Management, LLC
	Quay Partners Pty Ltd
	Siguler Guff & Company, LLC
	Vencap Limited
Absolute Return Strategies	BlackRock Alternative Advisors
	Bridgewater Associates, Inc
	GMO Australia Limited
	Harris Alternatives LLC.
Currency Management	FX Concepts, LLC.
	Lee Overlay Partners Limited
	ME Portfolio Management Limited
	Pareto Partners