Income Stream investment options
choose from 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 objectives
| Retirement Income Stream | Transition to Retirement (TTR) Income Stream | |
|---|---|---|
| Long-term (10 years) | CPI + 4.0% | CPI + 3.5% |
Type of investor this option may suit
Ambitious
Description
Invests in a wide range of mainly shares, private equity, property and infrastructure, with some debt and cash investments. This option aims to achieve medium to long-term growth with some possible ups and downs in the short term
Probable number of negative annual returns over 20 years
3 to less than 4
Suggested minimum investment timeframe
5 to 7 years
* Previously named Balanced..
Investment objective
| Retirement Income Stream | Transition to Retirement (TTR) Income Stream | |
|---|---|---|
| Long-term (10 years) | CPI + 2.5% | CPI + 2.0% |
Type of investor this option may suit
Cautious
Description
Invests in a range of mainly debt and cash, with some exposure to shares, property and infrastructure. This option aims to achieve medium-term growth with some possible ups and downs, but is expected to be more stable than Balanced Growth in the short term.
Probable number of negative annual returns over 20 years
1 to less than 2
Suggested minimum investment timeframe
1 to 3 years
Investment objective
| Retirement Income Stream | Transition to Retirement (TTR) Income Stream | |
|---|---|---|
| Long-term (10 years) | CPI + 3.0% | CPI + 2.5% |
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. This option aims to achieve medium to long-term growth with some possible ups and downs in the short term.
Probable number of negative annual returns over 20 years
4 to less than 6
Suggested minimum investment timeframe
7 to 10 years
* Commenced 1 October 2020.
Investment objective
| Retirement Income Stream | Transition to Retirement (TTR) Income Stream | |
|---|---|---|
| Long-term (10 years) | CPI + 4.0% | CPI + 3.5% |
Type of investor this option may suit
Very ambitious
Strategy
Invests in shares, debt and private equity of companies with above average environmental, social and governance performance, along with some exposure to environmental property investments. This option aims to achieve medium to long-term growth with some possible ups and downs in the short term.
Probable number of negative annual returns over 20 years
4 to less than 6
Suggested minimum investment timeframe
7 to 10 years
* Previously named Eco.
Investment objective
| Retirement Income Stream | Transition to Retirement (TTR) Income Stream | |
|---|---|---|
| Long-term (10 years) | CPI + 4.5% | CPI + 4.0% |
Type of investor this option may suit
Very ambitious
Description
Invests in a wide range of primarily Australian and international shares, and private equity, along with some exposure to property, infrastructure, debt and cash. This option aims to achieve strong long-term growth with some possible ups and downs that may be greater than Balanced Growth in the short term.
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
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 objective
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 diversified portfolio, who would like to include cash, cash products and term deposits
Strategy
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 objective
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% Barclays Capital Global Aggregate ex Australia Index Hedged to $A.
Type of investor this option may suit
An investor seeking to create their own diversified portfolio, who would like to include debt and other fixed interest investments.
Description
Invests in Australian and international government bonds and other debt. This option aims for returns that typically outperform cash, but is more stable than shares in the short to medium term.
Probable number of negative annual returns over 20 years
1 to less than 2
Suggested minimum investment timeframe
1 to 3 years
* Previously named Global Bonds.
## Estimated tax rate provided by independent investment consultant.
Investment objective
| Retirement Income Stream | Transition to Retirement (TTR) Income Stream | |
|---|---|---|
| Long-term (10 years) | CPI + 3.5% | CPI + 3.0% |
Type of investor this option may suit
An investor seeking to create their own diversified portfolio, who would like to include property and infrastructure.
Description
Invests in Australian and global property and infrastructure, along with some cash. This option aims to achieve medium to long term growth with some possible ups and downs, but is expected to be more stable than shares in the short term
Probable number of negative annual returns over 20 years
2 to less than 3
Suggested minimum investment timeframe
5 to 7 years
* Previously named Property, changed to include Infrastructure on 1 October 2020.
Investment objective
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 S&P/ASX 300 Accumulation Index.
Type of investor this option may suit
This option may suit an investor seeking to create their own diversified portfolio, who would like to include Australian shares.
Description
Invests in a range of companies listed on the Australian stock exchange, as well as a few that aren't. This option aims to achieve strong growth over the long-term, with possible short-term ups and downs.
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.
Investment objective
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:
- 77.5% MSCI World ex Australia Index in $A Net Dividends Reinvested
- 22.5% MSCI Emerging Markets Index in $A Net Dividends Reinvested
- 50/50 $A Hedged/Unhedged.
Type of investor this option may suit
This option may suit an investor seeking to create their own diversified portfolio, who would like to include international shares.
Description
Invests in a range of companies listed on stock exchanges around the world. This option aims to achieve strong growth over the long-term, with possible short-term ups and downs.
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.
Information as at 1 October 2020.
For more information, read the Income Stream PDS
latest returns
HESTA Income Stream investment managers
as at 30 October 2020
We engage a range of professional fund managers to invest members’ money according to specific objectives and strategies. See our full list below.
We have the discretion to change managers at any time in accordance with its investment strategies.
| Investment Manager | Investment Manager ABN (if available) |
| First Sentier Investors (Australia) IM Limited | 89 114 194 311 |
| IFM Investors Pty Ltd | 67 107 247 727 |
| JP Morgan Chase Bank, N.A. | 43 074 112 011 |
| State Street Global Advisors, Australia, Limited | 42 003 914 225 |
| Investment Manager | Investment Manager ABN (if available) |
| BlackRock Asset Management (Australia) Limited | 13 006 165 975 |
| Pendal Group Limited | 17 126 390 627 |
| PIMCO Australia Pty Limited | 54 084 280 508 |
| Investment Manager | Investment Manager ABN (if available) |
| AEW Capital Management, L.P. | n/a |
| Heitman Capital Management, LLC | |
| Investa Wholesale Funds Management Limited | 16 149 681 390 |
| ISPT Operations Pty Ltd | 12 633 106 733 |
| Nuveen Alternatives Europe S.à r.l. | n/a |
| QIC Property Management Pty Ltd | 43 076 279 359 |
| Investment Manager | Investment Manager ABN (if available) |
| IFM Investors Pty Ltd | 67 107 247 727 |
| Kohlberg Kravis Roberts & Co. L.P. | n/a |
| Macquarie Fund Advisors Pty Ltd | 95 082 018 399 |
| Morrison & Co Utilities Management (Australia) Pty Ltd | 66 624 308 809 |
| Pacific Equity Partners Pty Ltd | 62 082 283 949 |
| Palisade Investment Partners Limited | 32 124 326 361 |
| Investment Manager | Investment Manager ABN (if available) |
| FTV Management Company, L.P. | n/a |
| Stafford Private Equity Inc | 31 094 669 940 |
| Investment Manager | Investment Manager ABN (if available) |
| Challenger Investment Partners Limited | 29 092 382 842 |
| IFM Investors Pty Ltd | 67 107 247 727 |
| ME Portfolio Management Limited | 79 005 964 134 |
| Oaktree Capital Management, L.P. | n/a |
| Westbourne Credit Management Limited | 27 131 843 144 |
| Investment Manager | Investment Manager ABN (if available) |
| Lee Overlay Partners Limited | n/a |
| Insight Investment Management Limited | n/a |
| Russell Investment Management Limited | 53 068 338 974 |
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