Where are HESTA funds invested?

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 can 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.

The figures shown in bold below represent the strategic asset allocation at 1 November 2010. The unbolded figures represent the asset allocation investment ranges which may be used to implement protective strategies.

Strategic asset allocation and ranges: Ready-Made Investment Pools (as at 1 July 2011)

	Conservative Pool (formerly Cash Plus) 3,4	Core Pool 3,4	Shares Plus 3,4	Eco Pool 3,4
Cash	25- 30-50%	0- 3- 30%	0- 2-25%	5- 10 -25%
Australian bonds	5- 11.3-20%	2- 5 -10%
International bonds	5- 11.2-20%	2- 5- 10%
Unlisted debt	0- 6.5- 9%	0- 2- 4%
Opportunistic growth		0- 3 -6%	0- 2.5 -10%
Australian direct property	0- 3.6 -8%	5- 8 -15%	0- 5.1 -12%	0- 10 -15%
International direct property 2	0- 1.4 -4%	0- 3 -5%	0- 1.9 -5%	0- 0 -5%
Australian infrastructure	0- 3.7- 5%	0- 6-10%	0- 3.6 -10%
International infrastructure 2	0- 4.3- 8%	0- 6-15%	0- 4.4- 15%
International shares 1	5- 12 -23%	15- 23 -35%	25- 35.5 -43%	25- 35 -40%
Australian shares	5- 15 -25%	20- 31 -36%	25- 40 -41%	30- 45 -50%
Australian private equity		0- 1 -5%	0- 1- 5%
International private equity 2		0- 3 -5%	0- 3 -5%
Other assets	0- 1- 2%	0- 1- 10%	0- 1- 2%

The currency exposures arising from international shares currently have a strategic hedge of 13% and active currency hedging.
The currency exposures arising from the international investments in infrastructure, property and private equity have a strategic hedge aim of 100%.
Each manager's investment will hold a small percentage of their mandate in cash for portfolio management purposes.
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.

Strategic asset allocation and ranges: Your Choice Asset Classes (as at 1 July 2011)

	Your Choice Infrastructure 1,2	Your Choice Private Equity 1,2	Your Choice Property 1,2	Your Choice Australian Shares 2	Your Choice International Shares 2	Your Choice Cash	Your Choice Global Bonds (formerly Fixed Interest)
Cash	5- 10- 15%	5- 10- 15%	5- 10- 15%	0-25%	0-25%	100%
Australian infrastructure	35- 40- 45%
International infrastructure	45- 50- 55%
Australian private equity		17.5- 22.5- 27.5%
International private equity		62.5- 67.5- 72.5%
Australian property			62.5- 67.5- 72.5%
International property			17.5- 22.5- 27.5%
Australian shares				75-100%
International shares					75-100%
Australian bonds							50%
International bonds							50%

The currency exposures arising from the international investments in infrastructure, property and private equity have a strategic hedge aim of 100%.
Each manager's investment will hold a small percentage of their mandate in cash for portfolio management purposes.

For more information download HESTA's Investment Choices guide.

HESTA Investment Managers (as at 1 August 2011)

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.
	ME Bank
	National Australia Bank Limited
	Perpetual Investment Management Limited
	State Street Global Advisors, Australia, Limited
Global Bonds
	BlackRock Asset Management (Australia) Limited
	Industry Funds Management Pty Ltd
	ME Portfolio Management Limited
	Pacific Investment Management Company
Unlisted Debt
Unlisted Debt	Industry Funds Management Pty Ltd
Property	AEW Value Investors, L.P.
	BT Funds Management No 2 Limited
	Challenger Manager Services Limited
	Charter Hall Limited
	DNZ Property Fund Limited
	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
	Scarborough Pacific Group
	Valad Funds Management Limited
International Shares	Altrinsic Global Advisors, LLC
	Baillie Gifford Overseas Limited
	BlackRock Asset Management (Australia) Limited
	First State Investments (Hong Kong) Limited
	Generation Investment Management LLP
	Hexavest Inc
	Lazard Asset Management Pacific Co
	Marathon Asset Management (Australia) Limited
	Mondrian Investment Partners Limited
	Orbis Investment Management Limited
	Taube Hodson Stonex Partners LLP
	Turner Investment Partners Pty Ltd
	Walter Scott & Partners Limited
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
	Goldman Sachs Asset Management & Partners Australia Pty Ltd
	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
	Lexington Capital Partners VI-B, L.P.
	Macquarie Investment Management LLP
	Newbury Partners LLC
	Oaktree Capital Management, L.P.
	Performance Equity Management, LLC
	Quay Partners Pty Ltd
	Siguler Guff & Company, LLC
	Vencap Limited
Opportunistic Growth	BlackRock Alternative Advisors
	Bridgewater Associates, Inc
	Industry Funds Management Pty Ltd
	Oaktree Capital Management, L.P.
Currency Management	Lee Overlay Partners Limited
	ME Portfolio Management Limited
	Mesirow Financial Investment Management, Inc
	Pareto Partners
Other Assets	BlackRock Alternative Advisors
Other Assets	GMO Australia Limited