super investment options

We give you the freedom to choose where your money is invested, because as your needs and goals change, so should your super investment choices.

 

choose one of our ready-made investment pools

 

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 haven't made an investment choice, all your super is automatically invested in our default investment option, Core Pool.

 

Investment objective

Medium-term (5 years) CPI + 3.0%
Long-term (10 years) CPI + 4.0%

Aims to optimise returns while only occasionally having a return less than zero.

 

Type of investor this option may suit

Assertive

 

Strategy

Invests in a diversified but balanced mix of assets. Aims to provide a less volatile return than would otherwise be expected in an investment with its investment objective.

 

Probable number of negative annual returns over 20 years

3 to less than 4

 

Suggested minimum investment timeframe

5 to 7 years

Investment objective

Medium-term (5 years) CPI + 1.5%
Long-term (10 years) CPI + 3.0%

Aims for the lowest year-to-year variation in returns of all Ready-Made Investment Pools, although with lower expected rates of return than Core Pool over the long term.

It is designed to:

  • be the most conservative of HESTA Pools
  • offer members a low-risk investment
  • seek greater returns than cash alone.

 

Type of investor this option may suit

Defensive

 

Strategy

Asset allocation includes:

  • more exposure to cash and debt markets than other Ready-Made Pools
  • approximately 25% of investments in shares.

Shares tend to have a low correlation, or relationship, with cash and debt and as one rises in value, the other may be expected to fall. Investing a proportion in shares helps reduce risk while enhancing the potential return over the longer 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

Medium-term (5 years) CPI + 4.0%
Long-term (10 years) CPI + 4.5%

Aims to provide higher long-term returns than Core Pool. Since there may be substantial year-to-year variation in returns, even in the longer-term. It may not outperform other Pools. It has a diversified portfolio that includes assets other than shares.

 

Type of investor this option may suit

Aggressive

 

Strategy

Has a mixed asset allocation, with more exposure to the share market than Core Pool. However, its diversification means that it has a lower risk profile than an investment in shares alone.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

7 to 10 years

Investment objective

Medium-term (5 years) CPI + 3.0%
Long-term (10 years) CPI + 4.0%

Aims to optimise long-term returns while investing in companies that demonstrate best practice sustainability performance within their industry sector, relative to their peers.

Its high allocation to shares means there is likely to be significant year-to-year variation in returns. It may be more suitable for an investor with a higher tolerance to investment risk. Although we expect long-term returns similar to Core Pool, it may not outperform other pools, even in the long term.

 

Type of investor this option may suit

Aggressive

 

Strategy

Invests in companies with the best combination of financial, environmental, social and governance performance as assessed by our managers. Companies specifically excluded from the Eco Pool's investments are those with uranium mining operations, those that manufacture tobacco products and certain companies with exposure to thermal coal. The Property investment is appropriately green rated. The Alternative Growth investments are in Cleantech.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

7 to 10 years

 

 

want more flexibility? design your own portfolio.

 

You can choose your own asset allocation (where you want to invest) and the level of risk you want to take. Create your own asset mix from the seven Your Choice Asset Classes below.

 

Investment objective

To earn a return after appropriate taxes and after the Indirect Cost Ratio, equivalent to or higher than the RBA Cash Rate. Is the most conservative of the Your Choice options. It aims to achieve its investment objectives each year.

 

Type of investor this option may suit

Cautious

Or, an investor seeking to create their own diversified portfolio, who would like to include cash and cash products. 

 

Strategy

Primarily invested in short-term bank deposits, and may include a small allocation to other cash investments. Its investment earnings are primarily from income but may include some movement in values.

 

Probable number of negative annual returns over 20 years

Less than 0.5

 

Suggested minimum investment timeframe

Less than 1 year

 

 

Investment objective

To earn a return after appropriate taxes and after the Indirect Cost Ratio above:

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

Aims to achieve its investment objective over the long-term (10 years).

Global Bonds:

  • is less conservative than Your Choice – Cash
  • may produce a negative return, but
  • is more conservative than other Your Choice options.

 

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 interested investments.

 

Strategy

Is 100% invested in bonds and other debt products. The underlying investments are similar for this asset class in Core Pool, being a range of global debt products, but excluding some unlisted debt that is considered higher risk. All currency exposures in international debt are fully hedged.

 

Probable number of negative annual returns over 20 years

1 to less than 2

 

Suggested minimum investment timeframe

1 to 3 years

 

 

Investment objective

To earn a return after appropriate taxes and after the Indirect Cost Ratio equivalent to or higher than CPI + 3.5%.

Aims to achieve its investment objective over the long-term (10 years). It is less conservative than cash or bonds, as it has a higher chance of producing a negative return. However, it is more conservative than the remaining Your Choice options.

 

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include Australian and international property.

 

Strategy

Is invested primarily in unlisted property products, and has a 10% holding in cash investments. Your Choice - Property investments are managed in a similar style to that used by Core Pool for this asset class.

 

Probable number of negative annul returns over 20 years

3 to less than 4

 

Suggested minimum investment timeframe

5 to 7 years

 

 

Investment objective

To earn a return after appropriate taxes and after the Indirect Cost Ratio equivalent to or higher than CPI + 3.5%.

Aims to achieve its investment objective over the long-term (10 years). It has holdings in unlisted infrastructure companies. Although these holdings are not considered speculative, they are likely to produce negative returns from time-to-time as their returns are expected to comprise of capital gains (or losses) and income. Returns should be less volatile than other equity investments as the earnings of these companies are expected to be relatively stable.

 

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include exposure to infrastructure assets.

 

Strategy

Is invested primarily in unlisted infrastructure products with a 10% holding in cash products. It will have investments in both Australian and international infrastructure. The underlying investments are similar to those for this asset class in Core Pool.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

5 to 7 years

 

 

Investment objective

To earn a return after appropriate taxes and after the Indirect Cost Ratio above:

  • 50% MSCI All Country World ex Australia Index in $A Net Dividends Reinvested Unhedged
  • 50% MSCI All Country World ex Australia Index in $A Net Dividends Reinvested Hedged.

Aims to achieve its investment objective over the long-term (10 years). It aims to produce a long-term return primarily from capital gains, however, it is very likely to produce negative returns from time-to-time.

 

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include exposure to listed international shares.

 

Strategy

The underlying investments in Your Choice - International Shares are similar for this asset class in Core Pool. The currency exposures in international shares are managed under our active currency overlay program policy. It may include managers who also short sell shares.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

7 to 10 years

 

 

 

 

Investment objective

To earn a return after appropriate taxes and after the Indirect Cost Ratio above S&P/ASX 300 Accumulation Index.

Aims to achieve its investment objective over the long term (10 years). It aims to produce long-term returns primarily from capital gains, however, it is very likely to produce negative returns from time-to-time.

 

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include exposure to listed Australian shares.

 

Strategy

The underlying investments in Your Choice - Australian Shares are similar for this asset class in Core Pool. Your Choice - Australian Shares investments are managed in a style similar to that used by Core Pool for this asset class. It can hold a small percentage of its assets in shares of companies not listed on the Australian Stock Exchange. It may include managers who also short sell shares.

 

Probable number of negative annual returns over 20 years

6 or greater

 

Suggested minimum investment timeframe

7 to 10 years

Investment objective

To earn a return after appropriate taxes and after the Indirect Cost Ratio 3% or more above:

  • 13.5% S&P/ASX 300 Accumulation Index
  • 76.5% MSCI World ex-Australia in $A Net Dividends Reinvested Hedged
  • 10% RBA Cash Rate.

Aims to achieve its investment objective over the long term (10 years). It targets high long-term returns, primarily from capital gains, however, it is very likely to produce negative returns from time to time.

 

Type of investor this option may suit

An investor seeking to create their own diversified portfolio, who would like to include exposure to Australian and international private equity products.

 

Strategy

Invests primarily in Australian and international private equity and also has a 10% holding in cash products. The underlying investments are similar to those for this asset class in Core Pool.

 

Probable number of negative annual returns over 20 years

4 to less than 6

 

Suggested minimum investment timeframe

7 to 10 years

 

 


Information as at 1 July 2017. For more information read Investment Choices.

 

 

changing your investment choice

 

Weekly switching is available to HESTA members at no extra cost.

For more information about how weekly switching works, download Investment Choices.

To change your investment choices login to Member Online and make your change.

Need some help? Our friendly advice team can help you work out suitable investment strategies. Get in touch.

 

 

HESTA investment managers
as at 30 June 2017

 

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)
Australia and New Zealand Banking Group  11 005 357 522
Bendigo and Adelaide Bank Limited    11 068 049 178
Bank of Queensland Limited     32 009 656 740
Commonwealth Bank of Australia   48 123 123 124
IMB Ltd     92 087 651 974
JP Morgan Chase Bank, N.A.     43 074 112 011
Members Equity Bank Pty Limited     56 070 887 679
National Australia Bank Limited     12 004 044 937
Rabobank Australia Limited     50 001 621 129
Rural Bank Limited     74 083 938 416
State Street Global Advisors, Australia, Limited     42 003 914 225
St George Bank - A Division of Westpac Banking Corporation
33 007 457 141
Westpac Banking Corporation     33 007 457 141

Investment Manager Investment Manager ABN
(if available)
Barings n/a
BlackRock Asset Management (Australia) Limited 13 006 165 975
BT Investment Management (Institutional) Limited  17 126 390 627
Challenger Management Services Limited 29 092 382 842
Industry Funds Management Pty Ltd 67 107 247 727
Members Equity Bank Pty Limited 56 070 887 679
ME Portfolio Management Limited 79 005 964 134
PIMCO Australia Pty Limited 54 084 280 508
Shenkman Capital Management, Inc. n/a
Westbourne Credit Management Limited 27 131 843 144

 

Investment Manager Investment Manager ABN
(if available)
AEW Capital Management, L.P. n/a
BT Investment Management Limited 17 126 390 627
EG Funds Management Pty Ltd 22 108 198 492
Eureka Funds Management Limited 47 107 346 841
Fortius Funds Management Pty Limited 90 093 111 641
Franklin Templeton Investments Australia Limited 87 006 972 247
Heitman Capital Management, LLC  n/a 
Investa Wholesale Funds Management Limited 16 149 681 390
ISPT Pty Ltd 28 064 041 283
IIPT Pty Ltd 22 103 498 424
MSREF V International-GP, LLC n/a
QIC Property Management Pty Ltd 43 076 279 359
Scarborough Pacific Group Pty Limited 52 140 660 975
Stride Property Limited n/a

 

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
Hexavest Inc n/a
Industry Funds Management Pty Ltd 67 107 247 727
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 LLC n/a
Somerset Capital Management n/a
Stewart Investors 89 114 194 311

 

Investment Manager Investment Manager ABN
(if available)
Airlie Funds Management Limited 75 159 022 974
Allan Gray Australia Pty Limited (formerly Orbis) 48 112 316 168
BT Investment Management (Institutional) Limited 17 126 390 627
Citigroup Global Markets Australia Pty Limited 64 003 114 832
Cooper Investors Pty Limited 26 100 409 890
Ellerston Capital Limited 34 110 397 674
Greencape Capital Pty Ltd 98 120 328 529
Industry Funds Management Pty Ltd 67 107 247 727
Invesco Australia Limited 48 001 693 232
Maple-Brown Abbott Limited 73 001 208 564
Northcape Capital Pty Ltd 53 106 390 247
Perpetual Investment Management Limited 18 000 866 535
Renaissance Smaller Companies Pty Ltd 88 103 874 102
Schroders Investment Management Australia Limited 22 000 443 274
Solaris Investment Management Limited 72 128 512 621
Yarra Funds Management Limited 63 005 885 567

Investment Manager Investment Manager ABN
(if available)
Hastings Funds Management Limited 27 058 693 388
Industry Funds Management Pty Ltd 67 107 247 727
Kohlberg Kravis Roberts & Co. L.P. n/a
Palisade Investment Partners Limited 32 124 326 361
Stafford Timberland Limited n/a

 

Investment Manager Investment Manager ABN
(if available)
Adveq Management AG n/a
Allegro Funds Pty Ltd 28 128 866 053
Brandon Capital Partners Pty Ltd 82 128 415 903
Coller Investment Management Limited n/a
FSN Capital Partners AS n/a
FTV Management Company, L.P. n/a
Generation Investment Management LLP n/a
Grey Mountain Partners LLC n/a
Industry Funds Management Pty Ltd 67 107 247 727
JMI Management Inc n/a
Leapfrog Investments Group Ltd n/a
Lexington Advisors Inc n/a
Littlejohn & Co., LLC n/a
Madison-India Management Advisors Private Limited n/a
Newbury Associates LLC n/a
Oaktree Capital Management, L.P. n/a
Olympus Advisors LLC n/a
PAG Asia Capital Limited n/a
Performance Equity Management, LLC n/a
Platinum Equity Advisors LLC n/a
Providence Equity Partners LLC n/a
Rio Energy Management LLC n/a
Roark Capital Management  LLC n/a
Stafford Fund Nominees Pty Ltd 21 113 939 325 
Stafford Private Equity Pty Ltd  31 094 669 940
Stafford Private Equity Inc n/a 
Siguler Guff Advisers, LLC n/a
Stone Point Capital LLC n/a
TDR Capital, LLP n/a
Vencap Limited n/a

 

Investment Manager Investment Manager ABN
(if available)
BlackRock Financial Management, Inc n/a
Bridgewater Associates, Inc n/a
Healthcare Royalty Management, LLC n/a
Industry Funds Management Pty Ltd 67 107 247 727
Kohlberg Kravis Roberts & Co. L.P. n/a
Oaktree Capital Management, L.P. n/a

 

Investment Manager Investment Manager ABN
(if available)
Lee Overlay Partners Limited n/a
ME Portfolio Management Limited 79 005 964 134
Pareto Investment Management Limited n/a

Investment Manager Investment Manager ABN
(if available)
QIC Limited 92 942 373 762

 

 

 

what's next?

Investment update

Monthly Markets is a free, downloadable investment report provided by Frontier Advisors Pty Ltd*, our investment consultant. The report can help you stay up-to-date on market news.

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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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*Frontier Advisors Pty Ltd is an Australian Financial Services Licensee No. 241266 (ABN 21 074 287 406). The Trustee, H.E.S.T. Australia Limited, is a shareholder in Frontier Advisors Pty Ltd.