CEO investment update


HESTA CEO Debby Blakey takes us through investment performance for the past financial year, and the fund's focus on creating long-term value for our members.


Title: HESTA Investment Update - July 2022

Debby Blakey

Hello and welcome to the HESTA Investment Update.

It’s been a challenging year, both in financial markets and for many of our members working in health and community services. One way we’re continuing to support our members is by focusing on delivering strong, long-term investment returns. So let’s take a look at how HESTA’s investments have performed.

Over the past 10 years, our MySuper accumulation option, HESTA Balanced Growth, has delivered an average of 8.53% per annum. Our Transition to Retirement Balanced Growth option, has delivered the same return.

For members in the retirement phase, our Income Stream Balanced Growth option has returned an average of 9.04% per annum over 10 years.

I know many of you will have felt the rising cost of everyday goods and services. From higher gas and electricity bills to a more expensive grocery shop, these cost-of-living pressures are impacting household budgets. Inflationary pressures are also a cause of market volatility, which is challenging for investors.

This rising cost of living is why growing our members’ super balances is so important. Delivering strong, long-term investment returns will help protect our members’ spending power, and their standard of living in retirement.

While we aim to achieve strong investment performance over the long term, we understand market ups and downs may impact short-term performance.

It is in this context that HESTA’s Balanced Growth option delivered a return of negative 1.79% for the past financial year. This is just the third time in 35 years that HESTA Balanced Growth super option has delivered a negative return. And it’s only the first since the Global Financial Crisis in 2009.

Our Income Stream Balanced Growth option returned negative 4.09%. This difference in returns is due to differing tax treatments and asset allocations for Super and Income Stream options.

While we understand these may not be the returns members have been used to seeing, HESTA still delivered good results compared to balanced options in many other funds.

SuperRatings, an independent ratings agency, has released their ranking of the top balanced super options for the 2022 financial year. HESTA Balanced Growth placed in the top ten over both one and ten-year time periods.

We know some members may feel concerned about how market changes may impact their balances. Super is a long-term investment. So, it’s vital during times of market uncertainty to maintain a long-term mindset.

Our members can always get help from HESTA, and this includes advice about their investment strategy. Our members can find help online, over the phone, or face-to-face.

HESTA has over 35 years’ experience managing our members’ money through various market conditions. Markets are unpredictable, so we do plan for some negative annual returns along the investment journey.

Our diversified investment approach aims to protect our members’ investments during periods of market volatility. It also means HESTA is well positioned to seize opportunities as conditions improve.

Another important way we’re supporting members is by continuing to achieve strong fund growth. This provides benefits of scale, enabling us to invest in high-quality assets across the world, and keep enhancing our products and services.

An exciting new chapter of our growth will come from our work with Mercy Super. We’re working on a merger that will see their members join HESTA. This will help us continue to be the fund of choice for those working in the health and community services – and for those wanting their super to have impact.

‘Super with Impact’ is how we strive to deliver investment excellence, while helping to create a more sustainable world.

One area of focus is on advocating for a fairer super system. This year, our efforts helped achieve the successful removal of the four-hundred-and-fifty-dollar threshold on paying super. Previously, many of our members were unfairly excluded from the benefits of super. So, this reform is an incredibly important step for our members, and in fact all Australians.

We’re also continuing to amplify the impact your super can have through active ownership. HESTA encourages companies to take action on important issues, such as gender equality and climate change. Improving the way companies manage these risks helps protect the long-term value of our members’ investments, while also contributing to a better world for them to live, work and retire into.

Another way we’re helping build a better financial future for our members is by making it easier than ever for them to access help and advice when they need it.

Last financial year, we launched Future Planner. Future Planner is a unique digital tool that empowers our members to make great, long-term decisions about their super.

And for members who want more detailed support, our dedicated advice team is here to help them make the most of their financial future.

Creating that future is our focus. As one of the largest and most enduring super funds in Australia, HESTA is in a position of strength.

Our members’ money is working around the clock – and around the globe – to continue making a positive impact on their future.

Thank you for tuning in.





super performance

Take a look at the latest performance for all the HESTA investment options.

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