income stream investment options

Thinking of retiring? We offer 10 flexible Income Stream investment options which can pay you a regular income before and during your retirement.


choose one of our Ready-Made Options

 

Whether you're a new or an experienced investor, we've made it easy to select an investment strategy to help fund the retirement lifestyle you deserve. 

If you don't make an investment choice when you join, you'll automatically be invested in the HESTA Income Stream Ready-Made Strategy. It's made up of a mix of the Balanced and Conservative investment options.

For more information please see
HESTA Income Stream Ready-Made Strategy.

 

 

Investment return objective long term (10 years) (p.a.)

To earn a return (after-tax return for TTR), after investment fees and indirect costs, equivalent to

or higher than:

RIS: CPI + 3.5%

TTR: CPI + 3.0%

 

Type of investor this option may suit

Ambitious

 

Description

Invests in a wide range of mainly shares, debt and infrastructure, with some property, private equity, alternatives, and cash investments. With a higher exposure to growth assets, this option may experience high volatility.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

5 to 7 years

 

 

Investment return objective long term (10 years) (p.a.)

To earn a return (after-tax return for TTR), after investment fees and indirect costs, equivalent to or

higher than:

RIS: CPI + 2.0%

TTR: CPI + 1.5%

 

Type of investor this option may suit

Cautious

 

Description

Invests in a range of mainly debt and cash, with some exposure to shares, alternatives, property and infrastructure. With less exposure to growth assets, this option may experience low volatility.

 

Probable number of negative annual returns over 20 years

2 to less than 3

 

Suggested minimum investment timeframe

1 to 3 years

 

 

 

Investment return objective long term (10 years) (p.a.)

To earn a return (after-tax return for TTR), after investment fees and indirect costs, equivalent to or higher than:

RIS: CPI + 2.5%

TTR: CPI + 2.0%

 

Type of investor this option may suit

Ambitious

 

Description

Invests in a mix of low-cost asset class strategies that aims to closely match index returns. With a high exposure to growth assets, this option may experience high volatility.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

5 to 7 years

 

 

 

Investment return objective long term (10 years) (p.a.)

To earn a return (after-tax return for TTR), after investment fees and indirect costs, equivalent to or higher than:

RIS: CPI + 3.5%

TTR: CPI + 3.0%

 

Type of investor this option may suit

Ambitious

 

Description

This option seeks to avoid exposure to particular activities and tilt investment towards companies and assets whose activities are thematically aligned with the UN Sustainable Development Goals (SDGs). Invests in shares, debt and property, with some private equity, alternatives, infrastructure and cash investments. With a higher exposure to growth assets, this option may experience high volatility.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

5 to 7 years

 

 

 

Investment return objective long term (10 years) (p.a.)

To earn a return (after-tax return for TTR), after investment fees and indirect costs, equivalent to or higher than long-term:

RIS: CPI + 4.5%

TTR: CPI + 4.0%

 

Type of investor this option may suit

Very ambitious

 

Description

Invests in a wide range of primarily Australian and international shares, infrastructure and private equity, along with some exposure to alternatives, property, debt and cash. With the highest allocation to growth assets across our Ready-made options, this option may experience very high volatility.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

7 to 10 years

 

 

 

design your own portfolio with Your-Choice options

 

Your-Choice Options let you tailor your own portfolio, or invest in a specific asset class.

While Your-Choice Options don't offer the same level of asset class diversification as the Ready-Made Options, they've been designed to provide targeted exposure to specific asset classes.

 

 

Investment return objective long term (10 years) (p.a.)

Over the long term, to earn a return (after-tax for TTR), after investment fees and indirect costs, equivalent to or higher than the return (net of tax## for TTR) of the Bloomberg Ausbond Bank Bill Index.

 

Type of investor this option may suit

Very Cautious. Or an investor seeking to create their own portfolio, who would like to include cash, cash products and term deposits, or seeking exposure to this asset class.

 

Description

Invests in a range of at-call bank deposits and short-dated term deposits, and may have a small allocation to other cash investments. It is expected to deliver a return above the official RBA cash rate over the long term. 

 

Probable number of negative annual returns over 20 years

Less than 0.5

 

Suggested minimum investment timeframe

Less than 1 year

 

Previously named Cash, changed to include Term Deposits on 1 October 2020.

## Estimated tax rate provided by independent investment consultant.

 

 

Investment return objective long term (10 years) (p.a.)

Over the long term, to earn a return (after-tax for TTR), after investment fees and indirect costs, equivalent to or higher than the return (net of tax## for TTR) of the combination of:

  • 50% Bloomberg AusBond Composite 0+ Year Index
  • 50% Bloomberg Barclays Global Aggregate ex Australia Index Hedged to $A.

 

Type of investor this option may suit

An investor seeking to create their own portfolio, who would like to include debt and other fixed interest investments or seeking exposure to this asset class.

 

Description

Invests in Australian and international government bonds and other debt. This option is expected to earn a higher return than cash and may experience low volatility.

 

Probable number of negative annual returns over 20 years

2 to less than 3

 

Suggested minimum investment timeframe

1 to 3 years

 

Previously named Global Bonds.

## Estimated tax rate provided by independent investment consultant.

 

 

Investment return objective long term (10 years) (p.a.)

Over the long term, to earn a return (after tax for TTR), after investment fees and indirect costs, equivalent to or higher than:

RIS: CPI + 3.5%

TTR: CPI + 3.0%

 

Type of investor this option may suit

An investor seeking to create their own portfolio, who would like to include property and infrastructure or seeking exposure to this asset class.

 

Description

Invests in Australian and global property and infrastructure, along with some cash. This option is expected to earn a higher return than cash and global debt and may experience moderate volatility.

 

Probable number of negative annual returns over 20 years

3 to less than 4

 

Suggested minimum investment timeframe

3 to 5 years

 

Previously named Property, changed to include Infrastructure on 1 October 2020.

 

Investment return objective long term (10 years) (p.a.)

Over the long term, to earn a return (after-tax for TTR), after investment fees and indirect costs, equivalent to or higher than the return (net of tax## for TTR) of MSCI All Country World Ex-Australia Index (unhedged in AUD).

 

Type of investor this option may suit

This option may suit an investor seeking to create their own portfolio, who would like to include international shares or seeking exposure to this asset class.

 

Description

Invests in a range of companies listed on stock exchanges around the world. With a full allocation to shares, this option may experience very high volatility.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

7 to 10 years

 

## Estimated tax rate provided by independent investment consultant.

 

 

Investment return objective long term (10 years) (p.a.)

Over the long term, to earn a return (after-tax for TTR and adjusted for tax credits for RIS), after investment fees and indirect costs, equivalent to or higher than the return of the S&P/ASX 300 Accumulation Index (net of tax## for TTR and adjusted for tax credits for RIS). 

 

Type of investor this option may suit

This option may suit an investor seeking to create their own portfolio, who would like to include Australian shares or seeking exposure to this asset class.

 

Description

Invests in a range of companies listed on the Australian stock exchange, as well as a few that aren't. With a full allocation to shares, this option may experience very high volatility.

 

Probable number of negative annual returns over 20 years

6 or greater

 

Suggested minimum investment timeframe

7 to 10 years

 

## Estimated tax rate provided by independent investment consultant.

 

Information as at 30 September 2023. For more information read the Income Stream Product Disclosure Statement (pdf).

 


 

 

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HESTA Income Stream

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HESTA investment managers

We engage a range of professional fund managers to invest members’ money according to specific objectives and strategies. 
 

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Calculate your risk profile

Assess your attitude to investing and determine your likely risk profile. Keep your risk profile in mind to make an appropriate investment choice.

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Our portfolio holdings

See the holdings in each of our investment options.

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Want to discuss your options?

With online resources and experts ready to assist you over the phone or in person, we want our members to receive the best advice, in the ways that suit you most.

Learn more about HESTA Advice