15 July 2019
HESTA announces 2018/19 Financial Year returns
HESTA has again delivered strong, competitive investment returns to members for the FY1819.
“Core Pool our default MySuper investment option delivered 7.25% this financial year, a fantastic result for our accumulation members super balances,” said HESTA CIO Sonya Sawtell-Rickson.
Over the medium to long-term Core Pool has delivered 8.32% over 5 years and 9.06% over 10 years, well exceeding the target investment objective of CPI + 3.5% over 10 years.
Ms Sawtell-Rickson said it was pleasing to see that Core Pool was also among the leading MySuper default options on a risk adjusted basis as it showed how the Fund was balancing the need to generate strong returns with protecting the capital of its members.
Rating Agency Rainmaker’s RMetric Mysuper report^ looks at the top performing MySuper investment options, assessing their three-year performance alongside the volatility of returns generated over this time period.
Rainmaker found that over three years Core Pool rated among the top ten MySuper investment options for performance on this risk-adjusted basis. Over the same time period, Core Pool was also ranked third for having the fewest negative returns.
“Core Pool is where most HESTA members have their super invested, so it’s important that we’re appropriately managing risk as well as achieving strong, competitive, long-term returns.” Ms Sawtell-Rickson said.
“The balanced, diversified approach of Core Pool aims to deliver long-term investment performance across a range of market conditions, while providing appropriate downside protection, as we believe that this will, over time, make the biggest difference to members’ retirement savings.”
Ms Sawtell-Rickson said Core Pool’s financial year return was driven by the strong returns performance of Australian Equities (11.4%) and other diversifying asset classes such as infrastructure and private equity.
The Fund’s socially responsible investment (SRI) option, Eco Pool, once again delivered outstanding returns to members, with industry leading long-term performance.
“Eco Pool is this year’s standout, achieving a return of 11.03%,” said Ms Sawtell-Rickson.
“This strong result is driven by the industry-leading responsible investment expertise we’ve developed over many years and underpins the strong, long-term relationships we’ve built with specialist managers as a result,” Ms Sawtell-Rickson said.
“These managers are skilled at delivering Eco Pool’s strategy that’s focused on identifying companies that are ‘best in class’ across both financial and environment, social and governance (ESG) factors.
Eco Pool was the first SRI superannuation option launched in Australia. Along with an investment strategy designed to identify top performing investments across both ESG and financial factors, the option also has fossil fuel, tobacco and uranium exclusions, along with a broader portfolio-wide exclusion on controversial weapons.
In its latest performance analysis of SRI options, independent superannuation ratings agency, SuperRatings, rated Eco Pool as the top performing SRI option over three, five, seven, 10 and 15 year timeframes*.
Eco Pool has delivered double digit returns in five of the past seven years.
For a full list of HESTA investment option performance visit: hesta.co/performance
^Rainmaker RMetrics MySuper report (31 March 2019)
*SuperRatings Sustainable Fund Credit Ratings Survey (31 May 2019)
Issued by H.E.S.T. Australia Ltd ABN 66 006 818 695 AFSL 235249, the Trustee of Health Employees Superannuation Trust Australia (HESTA) ABN 64 971 749 321. This information is of a general nature. It does not take into account your objectives, financial situation or specific needs so you should look at your own financial position and requirements before making a decision. You may wish to consult an adviser when doing this. Investments may go up or down. Past performance is not a reliable indicator of future performance. Before making a decision about HESTA products you should read the relevant product disclosure statement (call 1800 813 327 or visit hesta.com.au for a copy), and consider any relevant risks (hesta.com.au/understandingrisk)