new investment option

balance

Introducing HESTA Indexed Balanced Growth.

 

On 1 October 2020 we made some changes to the investment options we offer. Amongst them was a new option which we’re excited to offer to HESTA members - Indexed Balanced Growth.

 

You asked, we listened

Index funds have grown in popularity over the last few years thanks to the influence of the likes of Scott Pape, also known as the Barefoot Investor or the world’s most successful investor, Warren Buffet.

 

We created HESTA Indexed Balanced Growth because it’s something our members have asked for. We know fees matter, so we created this option as a low-cost alternative to complement our range of investment options.

 

The investment fee for Indexed Balanced Growth is 0.06% and the indirect cost ratio is 0.00%. You can find out more about investment fees here.

 

What does the HESTA Indexed Balanced Growth option invest in?

Our HESTA Indexed Balanced Growth option invests in a mix of low-cost growth and defensive asset class strategies that aim to closely match index returns.

 

HESTA Indexed Balanced Growth is primarily a passive investment option which is diversified, and invests to track the performance of multiple indices. These are:

 

  • Australian shares: S&P/ASX 200 Accumulation Index
  • International shares: MSCI World ex Australia ex Tobacco Net Dividend Reinvested Hedged 50/50
  • Bonds: Bloomberg Ausbond Composite 0+ Year Index (we will introduce global bond exposure once the portfolio has enough scale)
  • Cash: Ausbond Bank Bill Index.

 

Is this investment option right for me?

Our new HESTA Indexed Balanced Growth option is designed for ambitious members who want to balance low costs with the potential for moderate returns. It also might be of interest if you’re already an avid follower of the stock market, and you want to cost-effectively track the market, but also have some exposure to bonds and cash.

 

While Indexed Balanced Growth has the same amount of growth and defensive assets as our Balanced Growth option, it may be more open to the ups and downs of the market because it tracks the performance of various indices.

 

It’s worthwhile thinking about how comfortable you are with financial risk from market volatility and speaking to a financial adviser before switching to this option. As a HESTA member you can get advice about your super at no extra cost. It’s all part of being with HESTA.

 

It’s just one more way we’re giving you choice in how you invest for your future.

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Investment option changes

Find out more about our investment option changes.