member outcomes assessment

Our assessment of the MySuper Balanced Growth option — where most¹ HESTA accumulation members are invested — found that it continues to deliver strong outcomes for members, returning 10.18% for the financial year and strongly outperforming its investment objective. The option outperformed the peer median² over key periods from 3 to 10 years, and passed APRA's 2025 MySuper Performance Test.

All Ready-Made Options also ranked in the top quartile³ and top 10 over the past 10 years⁴. However, short-term rankings were more mixed, with the Balanced Growth option just below the median for the 12 months to 30 June 2025.

Net investment returns for most of our accumulation Your Choice Options performed better than the median⁵ over most time periods when compared to other investment options with a similar investment strategy. Additionally, all options subject to the annual superannuation performance test conducted by APRA continued to deliver returns above their designated benchmarks, including the Property & Infrastructure option (which doesn't have a direct peer comparison).

Net investment returns for most of our Income Stream Your Choice Options performed better than the median⁶ over most time periods when compared to other investment options with a similar investment strategy. Returns for our Transition to Retirement Income Stream options are consistent with accumulation returns.

More detail can be found in the summaries below.

¹ At 30 June 2025, 87.3% of HESTA’s members invested in HESTA’s MySuper product.

² Median is based on the SuperRatings SR50 MySuper Index. Returns are net of investment fees and costs, transaction costs and taxes over the specified period to 30 June 2025. Excludes insurance fees (for the avoidance of doubt). Past performance is not a reliable indicator of future performance. We also consider APRA’s Comprehensive Product Performance Package.

³ Source: SuperRatings Fund Crediting Rate Survey June 2025. Accumulation Options median are based on the following Indexes: SR50 Balanced (60-76) Index (Balanced Growth), SR50 Capital Stable (20-40) Index (Conservative), Balanced (60-76) Index (Indexed Balanced Growth and Sustainable Growth), SR50 Growth (77-90) Index (High Growth). Income Stream Options median are based on the following Indexes: SRP50 Balanced (60-76) Index (Balanced Growth), SRP50 Capital Stable (20-40) Index (Conservative), Balanced (60-76) Index (Indexed Balanced Growth and Sustainable Growth), SRP50 Growth (77-90) Index (High Growth)

⁴ With the exception of Indexed Balanced Growth as it has not reached the 10 year mark.

⁵ Source: SuperRatings Fund Crediting Rate Survey June 2025. Median are based on the following Indexes: SR50 Cash Index (Cash and Term Deposits), SR25 Diversified Fixed Interest Index (Diversified Bonds), SR50 International Shares Index (International Shares), SR50 Australian Shares Index (Australian Shares). The Property and Infrastructure option consists largely of private market assets and does not have a comparable peer group.

⁶ Source: SuperRatings Fund Crediting Rate Survey June 2025. Median are based on the following Indexes: SRP50 Cash Index (Cash and Term Deposits), SRP25 Diversified Fixed Interest Index (Diversified Bonds), SRP50 International Shares Index (International Shares), SRP50 Australian Shares Index (Australian Shares). The Property and Infrastructure option consists largely of private market assets and does not have a comparable peer group.

Our assessment found that our investment strategy remains appropriate having regard to the characteristics of members in the products.

HESTA sets long-term investment objectives for all Ready-Made Options that reflect the objective of achieving a positive real return (a return greater than the rate of inflation). Your Choice Options have investment objectives based on asset class indices where appropriate.

HESTA adopts a long-term asset allocation for each option that focusses on building a diversified portfolio of investments across and within asset classes. Because financial conditions change over time, we actively adjust asset allocations and positions to improve probabilities of achieving the investment objectives. Our asset allocation process also considers a variety of risk factors and options’ sensitivity to different stressed market conditions, both historical and forward looking.

We invest in strategies managed by our internal teams as well as by external managers and use our size to deliver economies of scale.

Our analysis found that for members in our accumulation products, our insurance strategy remains appropriate. HESTA aims to provide affordable default group insurance benefits to our members in accumulation products.

Most HESTA-insured members hold default cover. Our default cover design is generally intended to provide members with a minimum level of cover.

Our assessment concluded that our administrative and investment fees were below the median⁷ fee for most options when compared to other options with similar investment strategies and are appropriate for members currently invested in HESTA products.

We aim to keep our fees competitive to maximise retirement outcomes for our members.

⁷ Source: SuperRatings Fund Crediting Rate Survey June 2025. Accumulation Options median are based on the following Indexes: SR50 MySuper Index (Balanced Growth MySuper), SR50 Balanced (60-76) Index (Balanced Growth), SR50 Capital Stable (20-40) Index (Conservative), Balanced (60-76) Index (Indexed Balanced Growth and Sustainable Growth), SR50 Growth (77-90) Index (High Growth), SR50 Cash Index (Cash and Term Deposits), SR25 Diversified Fixed Interest Index (Diversified Bonds), SR50 International Shares Index (International Shares), SR50 Australian Shares Index (Australian Shares). The Property and Infrastructure option consists largely of private market assets and does not have a comparable peer group. Income Stream Options median are based on the following Indexes: SRP50 Balanced (60-76) Index (Balanced Growth), SRP50 Capital Stable (20-40) Index (Conservative), Balanced (60-76) Index (Indexed Balanced Growth and Sustainable Growth), SRP50 Growth (77-90) Index (High Growth), SRP50 Cash Index (Cash and Term Deposits), SRP25 Diversified Fixed Interest Index (Diversified Bonds), SRP50 International Shares Index (International Shares), SRP50 Australian Shares Index (Australian Shares). The Property and Infrastructure option consists largely of private market assets and does not have a comparable peer group.

Our assessment found that HESTA’s options, benefits, and facilities were well utilised by members⁸ and the range of services we offer members are similar to our peers. We considered the fees and costs for these options, benefits and facilities to be appropriate and compares favourably to comparable funds.

⁸ Our assessment considered a period of limited service in 2025 during which we transitioned to a new outsourced administration provider. Some facilities and services were unavailable or available at a restricted level during this period.

We are a specialist fund with more than a million members⁹, and we use our scale and size to help deliver value to all our members. We assessed that our scale does not disadvantage members in our products when compared against most funds in the market.

⁹ As at 1 July 2025.