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