Changes to insurance fees
HESTA insurance fees dropped by an average of 12% on 1 July 2026. Check if your cover still fits your life - it only takes a few minutes.
Balance
Our CEO Debby Blakey and Deputy CIO Jeff Brunton provide a performance and market recap for the 2025–2026 financial year. We also share news on our responsible investment recertification and an update on how HESTA members are investing in Australian healthtech innovation.
Debby Blakey: Hello. I'm Debby Blakey, CEO of HESTA. Thank you for being a valued HESTA member and for trusting us with your super. As the 25-26 financial year draws to a close, we're pleased to share our investment results with you.
The financial year has presented some challenges. Global markets were volatile at times, and it's natural to feel concerned during periods of market uncertainty. But it's so important to remember that for most members, super is a long-term investment, and HESTA has a history of delivering strong long-term returns for our members.
Our highly experienced and skilled investment team, led by our CIO Sonya Sawtell-Rickson remains focused on managing emerging risks and taking advantage of new opportunities in these times. We're so proud of our history of delivering strong, long-term returns that help our members to face the future with confidence.
Jeff Brunton: Thanks, Debby. I'm Jeff Brunton, Deputy Chief Investment Officer at HESTA.
Three forces shaped our thinking over the past financial year. Firstly geopolitics and then the shifting calculus of central banks against lingering inflation. And finally the rising influence of artificial intelligence on both the markets and the way we invest. None of these were new themes, but each one moved faster and less predictably than in prior years. Listed markets ended the year strongly, despite swinging between optimism and anxiety caused by the conflict driven expectations on trade flows. The ASX 300 finished up 6.2%, while the S&P 500 in the US rose 22.3%. Taiwan, Korea and Japan were significant beneficiaries this financial year, reflecting the dominance of AI as a market theme.
Closer to home, The Reserve Bank of Australia pivoted from cutting interest rates to hiking them, a sharper reversal than markets had priced at the start of the year. More broadly, central bank responses have been varied, leading to divergence across fixed income and currency markets. Elsewhere, infrastructure provided moderate growth, while property began to see challenges in adjusting to the new rate environment.
In this context, I'm pleased that our MySuper Balanced Growth option returned 9.46% in the 2026 financial year, another strong outcome, and the fourth year in a row that HESTA has delivered returns above 9% for our members. Pleasingly, HESTA’s Balanced Growth option has also achieved top quartile performance of 8.29% over the last ten years to the 30th of June 2026. Our long-term performance record has benefited from our approach to investing actively through market cycles and the diversification embedded in our portfolio construction approach. For the options most members in retirement are invested in, our Income Stream Balanced Growth option, returned 10.81% and our Income Stream Conservative option returned 7.04% in the 2026 financial year. You can view the returns for the rest of our super and income stream options on our website.
Looking ahead, the environment still demands careful navigation. Global systems are being redrawn. AI is having an increasing impact on investment opportunities and inflation, and interest rates will remain a key focus in the year ahead. Navigating structural transitions requires building a resilient portfolio, positioned to perform well across different potential scenarios and outcomes, and adjusting the portfolio with conviction as the outlook clarifies. That is the work ahead of us in financial year 2027. For more than three decades, HESTA has managed members’ savings through recessions, multiple financial crises, a pandemic, and a range of geopolitical shocks.
Our approach remains steady no matter the current events. We stay grounded in fundamentals, remain diversified, and continue to focus on investment excellence with impact. Thank you.
performance
All Super and Income Stream ready-made options have delivered positive returns over the 12 months to 30 June 2026. And importantly, these options have all achieved returns above their long-term 10-year objectives to 30 June 2026 .
Super and Transition to Retirement (TTR)
For Super and Transition to Retirement (TTR) members, our Balanced Growth option returned 9.46% over the 12 months to 30 June 2026.1
Balanced Growth option (MySuper) returns to 30 June 2026
You can view all our returns on our Super and Transition to Retirement performance page.
Retirement Income Stream
For Retirement Income Stream (RIS) members, our Balanced Growth option returned 10.81% over the 12 months to 30 June 2026, and our Conservative option returned 7.04% over the same period.1
Retirement Income Stream option returns to 30 June 2026
Retirement Income Stream Conservative option returns to 30 June 2026
Balanced Growth is the default option for HESTA Super, while a blend of Balanced Growth and Conservative is the default strategy for the HESTA Income Stream.
You can view our Income Stream returns on our Income Stream performance page.
responsible investment recognition
HESTA has once again been recognised as a Responsible Super Fund Leader 2026 by the Responsible Investment Association Australasia (RIAA). This accolade acknowledges our strong governance, commitment to responsible investment practices, focus on delivering measurable outcomes and dedication to transparency.
Responsible Super Fund Leaders are the highest-scoring super funds assessed by RIAA. The assessment evaluates performance across five key areas:
- Accountability and governance
- Responsible Investment commitment and approach
- Implementation
- Measurement and outcomes
- Transparency and responsiveness.
market news
FY26 saw markets respond to AI, central banks, and geopolitics. Strong international equity and tech gains contrasted more modest Australian shares, while bonds and property returns varied amid rate expectations and inflation pressures.
For most HESTA members, this meant strong super growth, with the fund's diversified approach helping balance the year's mixed market returns.
Global equities surged
Internationally, listed equities surged through the year, with many indices across the US (S&P 500 and Nasdaq), Europe (EURO Stoxx 50) and Asia (Nikkei 225 and KOSPI) topping 20% to 30 June 2026, with technology leading strongly. The ASX300 returned 6.2%, comparatively hampered by energy weakness and limited tech exposure.
Bonds edged up
Australian bonds delivered 1.5% and global hedged bonds rose 3% as inflation worries eased, though rising rates kept overall returns relatively modest.
Central banks diverged
The RBA paused at 4.35% as inflation concerns lingered, while the US Fed signalled potential rate rises, which created global headwinds.
Property mixed, infrastructure stable
Australian property faced challenges from higher interest rates, as markets adjusted to the new environment, though global returns were more positive. Global infrastructure provided moderate growth, with the benchmark gaining 5.2% on the year.
Energy markets tense
Energy markets settled as the Iran conflict paused, though insurance costs stayed elevated. Underlying geopolitical tensions have since reignited after the financial year.
your investments in healthcare
Finally, we’re celebrating the completion of a healthcare campus and recently welcomed a new manager to support us in delivering on our Super with impactTM vision.
Brenan Place
We shared our investment in Brenan Place in 2024, and are delighted that construction of the building was recently completed in June 2026. It includes space to be leased to various tenants, including ancillary services, administration, education and health services. St. Vincent’s Health is the anchor tenant of the space, which can accommodate up to 1,000 workers, providing a stable source of returns to members.
HESTA believes Australia’s ageing population should create strong demand for health services. This is likely to help deliver strong, long-term returns for our members, while supporting future jobs in health and community services, economic growth and better health outcomes.
Synthesis Capital partnership
HESTA is backing Australian healthtech innovation, providing the long-term investment these companies need to grow and succeed. Our newest investment partner, Synthesis Capital, gives us direct access to promising early-stage venture companies right when they need support the most.
Australian startups are consistently worried about being starved of capital to grow and scale homegrown innovations, often forcing them to look to capital markets like the US. This is especially acute for healthtech, given regulatory approvals and time-to-market can take much longer than other startups.
Through its partnership with the MedTech Actuator (an Asia Pacific organisation that helps bring medtech to market), Synthesis Capital engages early with promising companies and invests with greater conviction, backing them through key inflection points of growth. The partnership gives Synthesis Capital a structured pathway for developing and scaling healthtech ventures, with access to regional markets, expertise and networks across the Asia-Pacific.
As a Responsible Investment leader, HESTA prioritises opportunities where good returns for members and genuine impact can go hand in hand. Backing Synthesis Capital is one of those opportunities, helping bring promising Australian health innovations closer to the people who need them.
For HESTA members, this means backing innovations that could shape their careers, their own healthcare and their families', years before they're widely available.
Read more about Synthesis Capital's work on their website.
1 Except Indexed Balanced Growth, which only commenced on 1 October 2020 and has returned 9.82% average annualised return since inception to 30 June 2026.
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