changes to investment options

Our experienced investment team is focusing our investment options to better serve HESTA members.

Read full details

 

why we're making changes

We’re making changes to the investment options we offer. While some options will be closing, others will be new, have a name change or be a mix of existing options. You can read more details about the changes in the Significant Event Notice.

 

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Focus on expertise

By reducing our number of options, our investment team can better concentrate their expertise on a more focussed set of choices for members.

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Easy to understand

Investment options have been renamed so it’s easier for members to choose how to invest.

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More streamlined

We’re offering investment options across both super and income stream. There’ll be taxed options for Super and Transition to Retirement members and untaxed options for Retirement Income Stream members.

 

Our investment team of experienced professionals has been managing the super of Australia’s health and community service workers for many years. No matter what changes today, they’re keeping a steady focus on your tomorrow. 

 

 

so, what's changing?

From 1 October 2020, we’re making changes to our investment options.

The investment options will be consistently named across both super and income stream. This will give you a better understanding of the investment options and provide a seamless experience when moving from the accumulation phase of super to taking an income stream as you approach or reach retirement. 

 

what do the changes mean for you?

The changes we are making may impact your current investment choices. Some of the options you are currently invested in may be closed, merged or have a name change. Investment fees, indirect costs and asset allocations will also change.

Your investments will be automatically transferred into the option that best reflects your current selection from 1 October 2020. You’ll be able to make changes to your existing investment options until 11.59pm on Tuesday 29 September as usual, or to your new options from Monday 5 October 2020.

The table below outlines what’s changing.

 

Your investment options from 1 October 2020

Current Super options Current Income Stream and TTR options New options for Super and Income Stream from 1 October 2020
Ready-made 
Conservative Pool Conservative Pool Conservative
Core Pool (MySuper-authorised default option) Balanced Balanced Growth
Shares Plus Active High Growth
Eco Pool Eco Sustainable Growth
    Indexed Balanced Growth (new option)
  Defensive (closed and allocated to Conservative)  
Your choice
Cash Cash Cash and Term Deposits
Term Deposits 
Global Bonds   Diversified Bonds
Property Property Property and Infrastructure
Infrastructure (closed and allocated to Property and Infrastructure)
Australian Shares Australian Shares Australian Shares
International Shares International Shares International Shares
Private Equity (closed and allocated to Shares Plus, which will be renamed High Growth)    



 

overview of the changes
 

Super investment options: an overview

Some of the options you are currently invested in will be closed, merged or have a name change. Investment fees, indirect costs and asset allocations will also change.
 

  • The Cash option will add Term Deposits to its assets and be renamed Cash and Term Deposits.
  • The Infrastructure option will close and merge with Property, creating a Property and Infrastructure option.
  • Private Equity is closing. Members will be transferred to High Growth (formerly known as Shares Plus).
  • Core Pool will be renamed Balanced Growth.
  • Shares Plus will be renamed High Growth.
  • Conservative Pool will be renamed Conservative.
  • Global Bonds will be renamed Diversified Bonds.

HESTA Indexed Balanced Growth is a new option and invests in a mix of low-cost growth and defensive asset class strategies that aim to closely match index returns. It may suit ambitious investors.

 

Transition to Retirement options: an overview

All current Transition to Retirement (TTR) options will be closed then merged, renamed or transferred to options within our range of Super investment options. Investment fees, indirect costs and asset allocations will also change.

 

  • The separate options of Cash and Term Deposits options will merge into one option called Cash and Term Deposits.
  • The Property option will now include infrastructure assets and will be called Property and Infrastructure.
  • The Defensive option will close. Members will be transferred to the Conservative option. When you are transferred to the Conservative option, you will have a higher allocation to growth assets. If you are in the Ready-Made Investment Strategy, you may need to consider whether the increase in growth assets is suitable for you. We will not rebalance your investments or change the drawdown strategy as part of the changes. 
  • Balanced will be renamed Balanced Growth.
  • Active will be renamed High Growth.
  • Eco will be renamed Sustainable Growth
  • Australian Shares, International Shares and the Conservative option will be transferred into the existing options of the same name within Super.

TTR members will now have access to Diversified Bonds (formerly Global Bonds) within the Super investment options.

HESTA Indexed Balanced Growth is a new option and invests in a mix of low-cost growth and defensive asset class strategies that aim to closely match index returns. It may suit ambitious investors. 

 

Income Stream and Term Allocation Pension options: an overview

Some of the options you are currently invested in will be closed, merged or have a name change. Investment fees, indirect costs and asset allocations will also change. Income Stream options are tax free on investment earnings.
 

  • The separate Cash and Term Deposits options will merge into one option called Cash and Term Deposits.
  • The Property option will now include Infrastructure assets and will be called Property and Infrastructure.
  • The Defensive option will close. Members will be transferred to the Conservative option. When you are transferred to the Conservative option, you will have a higher allocation to growth assets. If you are in the Ready-Made Investment Strategy, you may need to consider whether the increase in growth assets is suitable for you. We will not rebalance your investments or change the drawdown strategy as part of the changes. 
  • The Balanced option will be renamed Balanced Growth.
  • The Active option will be renamed High Growth.
  • Eco will be renamed Sustainable Growth.

The Conservative option as well as Australian Shares and International Shares will not change.

HESTA Indexed Balanced Growth is a new option and invests in a mix of low-cost growth and defensive asset class strategies that aim to closely match index returns. It may suit ambitious investors. You will also have access to a Diversified Bonds option.

 

While we implement these changes, there will be a short period between 28 September - 5 October 2020 where withdrawal requests, including  investment switches, will be impacted.

If you would like to make changes, you should submit your request before 28 September 2020. There will also be a change to unit pricing. There will be no impact to scheduled pension payments.

Transaction type Timings that apply Unit pricing that applies
Investment switching will be temporarily suspended from 12.01am 30 September to 12.01am 5 October 2020
An automatic transfer of members to their new investment option (where relevant) Processed effective Thursday 1 October The automatic transfer will be processed using unit prices calculated at the end of the day on Wednesday 30 September
Investment switches received by 11.59pm (AET) 29 September 2020 Processed effective Friday 2 October Your switch will be processed using the new investment option and unit prices calculated at the end of the day on Wednesday 30 September
Members can submit switch requests under our changed investment menu From 12.01am Monday 5 October Normal investment switching rules apply: If you complete an investment switch before 11.59pm (AET) Tuesday 6 October, your switch will be processed the immediate Friday using prices calculated at the end of the day on the Tuesday.
Any switch requests received after 11:59pm (AET) Tuesday 6 October will be processed the Friday of the following week using the prices calculated the next Tuesday
Changes to transaction processing: Super members
Money ‘in’
  • Including employer and personal contributions and money you roll in from other funds
Money ‘in’ will be temporarily suspended from 12.01am 1 October to 12.01am 5 October and will be processed on 5 October, effective the day of receipt Money ‘in’ during this period will be processed using unit prices calculated at the end of the day on Wednesday 30 September
Money ‘out’
  • Including rollovers, withdrawals, lump- sum payments for claims and COVID-19 early release payments
Money 'out' will be temporarily suspended from 12.01am 28 September to 12.01am 5 October, with requests received from 28 September being processed within three business days from 5 October
Money ‘out’ will be processed using prices calculated at the end of the day on Wednesday 30 September until Friday 9 October when the next weekly unit price is applied to member accounts (as per normal unit price cycle)
Changes to transaction processing times: Income Stream members
Money ‘in’
  • Including employer and personal contributions and money you roll in from other funds
Money ‘in’ will be temporarily suspended from 12.01am 1 October to 12.01am 5 October and will be processed on 5 October, effective the day of receipt Money ‘in’ during this period will be processed using unit prices calculated at the end of the day on Wednesday 30 September
Money ‘out’
  • Including benefit payments or lump sum commutations
Money ‘out’ will be temporarily suspended from 12.01am Monday 28 September to 12.01am Monday 5 October, with requests received from 28 September being processed within three business days from 5 October Money ‘out’ will be processed using prices calculated at the end of the day on Wednesday 30 September until Friday 9 October when the next weekly unit price is applied to member accounts (as per normal unit price cycle)

Find out more 

 

 

 

 

 

Like to hear more about the changes?

Book your place at one of our interactive webinars now to hear more, directly from the HESTA team.