Our Member Outcomes Assessment for the year ending 30 June 2022.
HESTA is a fund created to deliver the outcomes our members need and want; our member focus is central to who we are. Our structure, our operations and our leadership are all informed by our members and their work. Our members’ needs drive our strategy, brand, and culture.
HESTA has assessed the products we offered during the 2021-22 financial year, which were:
1 Benchmarking for Transition to Retirement (TTR) products is currently not possible due to the lack of available data to compare.
In conducting our comparative analysis, we benchmarked our products (excluding TTR) against other products in the market.
The analysis also considered our deep understanding of our members’ characteristics. The unique characteristics of our fund inform our strategy and enable us to connect with our members through personalised communication.
To ensure everything we do as a fund continues to promote the financial interests of our members, we’re required to assess our performance against a range of factors including:
We’ve drawn a comparison against products and services provided by other funds using publicly available data from the APRA and independent ratings agencies including Chant West and SuperRatings.
HESTA MySuper |
HESTA Choice - Accumulation |
HESTA Choice - Income Stream |
Through our analysis and comparison to comparable products in the market, and the APRA Annual Performance test (for MySuper), we have determined that the financial interests of HESTA members (and other beneficiaries) are being promoted by HESTA.
HESTA MySuper is a ready-made investment option which is diversified and designed to meet the needs of members who don’t exercise choice in their investment option. Based on our assessment of factors including the level of investment risk and investment objective, HESTA’s MySuper investment strategy remains appropriate for members of the product because:
HESTA Choice – Accumulation investment options comprise ready-made, diversified investment options, and for HESTA Your Choice (for specific asset class/classes) and are designed to meet the needs of members who want access to a range of investment option choices with different risk/return outcomes. Based on our assessment of factors including the level of investment risk and investment objective, the strategy remains appropriate because:
HESTA Choice – Income Stream investment options comprise ready-made, diversified investment options, and for HESTA Your Choice (for specific asset class/classes) are designed to meet the needs of our members who want access to a range of investment option choices with different risk/return outcomes.
Based on our assessment of factors including the level of investment risk and investment objective, the strategy remains appropriate because:
The table below details how we compare to the industry, as per Chant West's data.
| HESTA’s investment option | 1-year return | Relative to median | 3-year returns | Relative to median | 5-year returns | Relative to median | HESTA 10-year returns | Relative to median | ||
|---|---|---|---|---|---|---|---|---|---|---|
| HESTA Balanced Growth (MySuper) | -1.80% | Better than median | 5.30% | Better than median | 6.70% | Better than median | 8.50% | Better than median | ||
| HESTA Conservative | -1.40% | Better than median | 3.00% | Better than median | 4.50% | Better than median | 5.80% | Better than median | ||
| HESTA Indexed Balanced Growth | - 6.10% | Better than median | n/a | No return or no benchmark | n/a | No return or no benchmark | n/a | No return or no benchmark | ||
| HESTA Sustainable Growth | -7.80% | Lower than median | 5.20% | Better than median | 7.00% | Better than median | 10.40% | Better than median | ||
| HESTA High Growth | -2.00% | Better than median | 6.90% | Better than median | 8.30% | Better than median | 10% | Better than median | ||
| HESTA Cash and Term Deposits | 0.20% | Match median | 0.40% | Lower than median | 1.00% | Match median | 1.70% | Match median | ||
| HESTA Diversified Bonds | - 8.60% | Better than median | - 1.70% | Better than median | 0.90% | Better than median | 2.60% | Better than median | ||
| HESTA Property and Infrastructure | 12.90% | No return or no benchmark | 5.80% | No return or no benchmark | 6.70% | No return or no benchmark | 7.90% | No return or no benchmark | ||
| HESTA International Shares | -14.50% | Lower than median | 5.50% | Lower than median | 7.20% |
Lower than median | 10.80% | Lower than median | ||
| HESTA Australian Shares | -3.70% | Better than median | 5.00% | Better than median | 7.40% | Lower than median | 9.40% | Match median |
Source: Chant West Member Outcomes Dashboard – comparing HESTA with most products in the market (excluding any employer plans). Data that is not available or where there is no comparable data referenced with n/a.
2 Returns (after fees and costs) are calculated on the annualised investment return (after tax and investment fees) over the specified period to 30 June 2022 and the administration fees as at December 2022. Excludes insurance fees (for the avoidance of doubt).
Product ratings are only one factor to be considered when making a decision. See hesta.com.au/ratings for more information.
Past performance is not a reliable indicator of future performance.
The table below details how we compare to the industry, as per Chant West's data.
| HESTA’s investment option | 1-year return | Relative to median | 3-year returns | Relative to median | 5-year returns | Relative to median | HESTA 10-year returns | Relative to median | ||
|---|---|---|---|---|---|---|---|---|---|---|
| HESTA Balanced Growth | -4.10% | Match median | 5.00% | Better than median | 7.00% | Better than median | 9.00% | Better than median | ||
| HESTA Conservative | -1.80% | Better than median | 3.20% | Better than median | 4.90% | Better than median | 6.40% | Better than median | ||
| HESTA Indexed Balanced Growth | - 6.90% | Better than median | n/a | No return or no benchmark | n/a | No return or no benchmark | n/a | No return or no benchmark | ||
| HESTA Sustainable Growth | - 8.80% |
Lower than median | 5.70% | Better than median | 7.70% | Better than median | 11.40% | Better than median | ||
| HESTA High Growth | - 5.60% | Lower than median | 6.00% | Better than median | 8.30% | Better than median | 11% | Better than median | ||
| HESTA Cash and Term Deposits | 0.20% | Match median | 0.50% | Lower than median | 1.10% | Lower than median | 2.00% | Match median | ||
| HESTA Diversified Bonds | - 9.70% | Better than median | n/a | No return or no benchmark | n/a | No return or no benchmark | n/a | No return or no benchmark | ||
| HESTA Property and Infrastructure | 14.00% | No return or no benchmark | 6.90% | No return or no benchmark | 7.30% | No return or no benchmark | 8.60% | No return or no benchmark | ||
| HESTA International Shares | -15.50% | Lower than median | 5.80% | Lower than median | 7.80% |
Lower than median | 11.60% | Lower than median | ||
| HESTA Australian Shares | -3.70% | Better than median | 4.80% | Match median | 7.90% | Lower than median | 10.10% | Lower than median |
Source: Chant West Member Outcomes Dashboard – comparing HESTA with most products in the market (excluding any employer plans). Data that is not available or where there is no comparable data referenced with n/a.
3 Returns are calculated net of investment fees and costs (excluding administration fees).
Product ratings are only one factor to be considered when making a decision. See hesta.com.au/ratings for more information.
Past performance is not a reliable indicator of future performance.
There are no comparative results for Transition to Retirement (TTR) returns.
| HESTA MySuper | HESTA Choice - Accumulation | HESTA Choice - Income Stream |
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Find more about HESTA’s investments.
4 Product ratings are only one factor to be considered when making a decision. See hesta.com.au/ratings for more information.
Past performance is not a reliable indicator of future performance.
Our analysis found that HESTA’s fees and costs, and the basis for the setting of fees on a cost recovery basis is appropriate for members currently invested in HESTA products.
All fees charged to HESTA member accounts consider principles of cost recovery in setting the amount to reflect HESTA’s position as a not-for-profit fund. All fees deducted from member accounts are retained in the reserves to fund the operations of the Fund, planning for significant projects that are not business as usual, address risks or to respond to any initiatives that arise that will benefit members of the fund (and in accordance with reserving policies).
The table below details how we compare to the industry. As per Chant West data – fees for a member with a $50,000 account balance was below most comparable products with a comparable risk profile for most of our investment options.
| HESTA's investment option | HESTA fees | Relative to median |
| HESTA Balanced Growth (MySuper) | $500 | Below the median |
| HESTA Conservative | $365 | Below the median |
HESTA Indexed Balanced Growth |
$170 | Below the median |
| HESTA Sustainable Growth | $630 | Above the median |
| HESTA High Growth | $585 | Above the median |
| HESTA Cash and Term Deposits | $155 | Below the median |
| HESTA Diversified Bonds | $280 | Below the median |
| HESTA Property and Infrastructure | $585 | No benchmark available |
| HESTA International Shares | $365 | Below the median |
| HESTA Australian Shares | $305 | Below the median |
Source: Chant West Member Outcomes Dashboard – comparing HESTA with most MySuper and Choice products in the market (excluding any employer plans).
| HESTA's investment option | HESTA fees | Relative to median |
| HESTA Balanced Growth (MySuper) | $496 | Below the median |
| HESTA Conservative | $466 | Above the median |
HESTA Indexed Balanced Growth |
$286 | Below the median |
| HESTA Sustainable Growth | $746 | Above the median |
| HESTA High Growth | $496 | Below the median |
| HESTA Cash and Term Deposits | $271 | Above the median |
| HESTA Diversified Bonds | $396 | Above the median |
| HESTA Property and Infrastructure | $656 | No benchmark available |
| HESTA International Shares | $481 | Above the median |
| HESTA Australian Shares | $396 | Below the median |
Source: Chant West Member Outcomes Dashboard – comparing HESTA with most Income Stream products in the market (excluding any employer plans).
| HESTA MySuper | HESTA Choice - Accumulation | HESTA Choice - Income Stream |
Fees and costs for a member with a $50,000 balance are in the second quartile when compared to most MySuper products according to Chant West. |
For most of the Choice (accumulation) options, fees, and costs for a member with a $50,000 account balance are in the top two quartiles when compared to equivalent Choice (accumulation) products, according to Chant West.
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Fees and costs for a member with a $50,000 balance compare favourably against comparable products across most of the Choice (income stream) options according to Chant West.
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Source: Chant West Member Outcomes Dashboard – comparing HESTA with most products in the market (excluding any employer plans).
Our analysis found that the options, benefits, and facilities available to members in HESTA’s products are appropriate for those members.
In reaching this finding, we considered the availability of services and member usage as compared to other funds. Chant West data showed that HESTA’s options, benefits, and facilities were well utilised by members, and the services available were similar to our peers. We also considered the fees and costs are appropriate, compare favourably to peers and come in below the median for the provision of services, benefits, and facilities.
Our analysis found that for members in our accumulation products, our insurance strategy remains appropriate and insurance fees do not inappropriately erode retirement incomes.
In reaching this conclusion, we found that the cost of Standard Cover insurance premiums compared to a members’ estimated salary was a low percentage, and compared favourably against the benchmark, as per Chant West data.
Our insurance benefit design carefully considers our members’ needs. Most of our members hold Standard Cover, which includes Death and Income Protection (IP) cover. Our Standard Cover is designed to provide a basic level of insurance cover. We are one of only a few super funds to offer IP cover as part of our Standard Cover because we find it helps more members overcome temporary disabilities and get back to work sooner especially when combined with the rehabilitation and wellbeing services included with our insurance offering. Total and Permanent Disability (TPD) Cover is available as voluntary cover.
The insurance benefit design has the flexibility to meet specific insurance needs that may not be met by the Standard Cover. This includes the ability to increase cover without having to provide full medical evidence, in some instances.
Key results
Find out more about HESTA’s insurance services.
HESTA has determined that the scale and size of HESTA’s business operations do not disadvantage members, and our operating costs are not inappropriately affecting the financial interests of members.
When compared against most funds in the market HESTA performs better than the benchmark in most metrics:
As HESTA continues to grow, investment fees are expected to naturally decline through scale benefits. This also enables our investment team to leverage our size and reputation in negotiating lower fees with fund managers.
With over 944,000 members and $66 billion in assets5, we can use our scale and size to deliver value to all our members.
5 Represents membership and FUM at 30 June 2022.