What sort of returns has the fund achieved?
In the long term, one of the most significant factors affecting your retirement benefit will be the investment returns you receive from your fund, after costs, fees and taxes are deducted. When you're looking at a super fund you should check what sort of returns the fund has achieved and whether you have a choice of investment options.
You should also examine the investment objectives of the fund or investment option you will be investing in, both to assess the level of risk involved and to establish whether they have been meeting their goals. However, remember that past returns are not a reliable indicator of future results. You should also check whether fees and charges are deducted before or after returns are applied to your account. (HESTA's declared interest rates are after payment of investment management fees, the Trustee Operating Fee, member benefit protection costs and taxes).
How HESTA investments have performed
HESTA's most popular investment option, Core Pool, performed well over the 5 years to 30 June 2009:
| 1 Year |
-12.3% |
| 3 Years |
-1.0% |
| 5 Years |
4.6% |
And HESTA's other investment options also aim for strong long-term results.
| Returns to 30 June 2009 |
1 Year |
5 Years |
Since
Inception |
Cash Plus
(commenced 1/7/95) |
-4.1% |
4.5% |
6.3% |
Core Pool
(commenced 1/8/87) |
-12.3% |
4.6% |
8.6% |
Shares Plus
(commenced 1/7/95) |
-13.1% |
4.2% |
7.6% |
Eco Pool
(commenced 1/2/00) |
-7.1% |
3.8% |
2.5%
|
Overseas Share Pool
(commenced 1/7/2001) |
-14.4% |
-0.7% |
-2.1% |
Australian Share Pool
(commenced 1/7/2001) |
-12.4% |
8.2% |
8.1% |
| Cash |
2.8% |
4.1% |
4.1% |
| Fixed Interest |
6.4% |
4.8% |
5.4% |
Absolute Returns Strategies
(commenced 1/7/2003) |
-15.2% |
2.9% |
3.6% |
| Property |
-20.0% |
3.5% |
5.8% |
| Infrastructure |
-9.8% |
7.7% |
6.9% |
| International Shares |
-15.6% |
-0.4% |
-1.1% |
| Australian Shares |
-13.4% |
7.9% |
7.7% |
| Private Equity |
-13.3% |
4.3% |
3.7% |
Predicting future returns
Previous returns on investment pools or investment classes are not a reliable indicator of future performance. This is because over time your investments may be affected by changing economic conditions, currency fluctuations, or other variables. For example, there are irregular cycles of 'bull' (growing) and 'bear' (contracting) share markets.