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.

changes to investment options

As of 1 October 2020 our investment options have changed.


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.

 

 

latest returns

HESTA Income Stream

Want to see how HESTA Income Stream options have performed?

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Transition to Retirement

Take a look at our latest Transition to Retirement returns.

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HESTA Income Stream investment managers

 as at 24 September 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)
Artisan Partners Limited Partnership n/a
Baillie Gifford Overseas Limited n/a
BlackRock Investment Management (Australia) Limited 13 006 165 975
Citigroup Global Markets Australia Pty Limited 64 003 114 832
Copper Rock Capital Partners LLC n/a
Generation Investment Management LLP n/a
Lazard Asset Management Pacific Co 13 064 523 619
Martin Currie Investment Management Limited 83 131 134 613
Robeco Hong Kong Limited 50 436 122 863
Russell Investment Management Limited 53 068 338 974
RWC Asset Management LLP n/a
Sanders Capital LCC n/a
State Street Global Advisors, Australia, Limited 42 003 914 225

 

Investment Manager Investment Manager ABN
(if available)
Citigroup Global Markets Australia Pty Limited 64 003 114 832
Cooper Investors Pty Limited 26 100 409 890
IFM Investors Pty Ltd 67 107 247 727
Pendal Group Limited 17 126 390 627
Plato Investment Management 77 120 730 136
Renaissance Smaller Companies Pty Ltd 88 103 874 102
State Street Global Advisors, Australia, Limited 42 003 914 225
Yarra Funds Management Limited 63 005 885 567

 

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

 

 

what's next?

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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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.

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