investment update

life

We are navigating difficult market conditions in 2022. But at HESTA, we start from a position of strength. Ongoing investment success is underpinned by our strong investment research culture. We know that long-term and profound change will generate value for our members.

 


creating investment excellence

 

Strong long-term performance doesn’t happen by chance. At HESTA, guided by our Quantitative Analysis and Research team — yes, they are as smart as they sound — we use sophisticated investment modelling. This investment approach looks beyond short-term volatility, doesn’t react to investment emotions, and guides our value-creating investment positions.

Our investment modelling drives strong decision making when markets are rallying and when they are volatile. These models help us invest with conviction.

It is specialised investment opportunities such as these which are helping drive really strong returns and are growing our members’ superannuation.

 

 

Title: HESTA Investment Update - May 2022

Alvin Tan

Hello and welcome to the HESTA Investment Update.

My name is Alvin and I’m the General Manager of the Quantitative Analysis and Research Team.

This year, we have navigated challenging market conditions. We’ve seen geopolitical tensions, rising inflation, and an evolving response from central banks.

Part of my role at HESTA, is focussed on how we stay ahead of changing market conditions. We use sophisticated investment models that look beyond short-term volatility, don’t react to investment emotions, and guide our value-creating investment positions.

These investment models help our investment team make confident decisions and invest with conviction.

With that in mind, let’s take a look at our recent investment performance.

Up to 31 March, 2022, the HESTA Balanced Growth option — our MySuper investment option — has returned 9.45% over the past 12 months. This demonstrates that we were able to generate strong returns while markets were rising, and protect members’ investments during more volatile market conditions.

Over the past 10 years, HESTA Balanced Growth has returned an average of 8.92% p.a. This is a terrific result for our members, and demonstrates the benefits of investing for the long term.

Within my team at HESTA, we’ve also been able to support the work of our Responsible Investment Team.

We’ve been able to use sophisticated climate scenario modelling to assess how climate change will affect economic outcomes in Australia and the USA. These outcomes will be reflected in investment market performance. Our climate scenario modelling allows us to evaluate how climate risk will impact GDP and inflation. In turn, we can use this data to best position our investments.

At HESTA, we are committed to investing to meet the challenges of climate change – after all, part of our commitment is to create a better world for our members to retire into.

We are committed to creating positive climate outcomes. We were the first major super fund to commit to reducing carbon emissions across the investment portfolio to net zero by 2050. This is all part of our Climate Change Transition Plan.

As we look ahead, interest rates and inflation are going to change the economic landscape. And asset prices will adjust in response. We will be positioning the portfolio to stay ahead of these changes.

As always, it’s important for our members to keep in mind that superannuation is a lifetime strategy, and the best investment outcomes will be seen over the long term.

Thanks for tuning in. We look forward to seeing you next time.

 

 

 

 

our long-term performance speaks for itself
  

 

 

Investments may go up or down. Past performance is not a reliable indicator of future performance. The returns shown are net of investment fees, indirect costs and taxes.

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.

 

 


 

 

climate change modelling

 

At HESTA, we are committed to investing to meet the challenges of climate change – after all, part of our commitment is to create a better world for our members to retire into.

We also need to ensure we position our investments to protect members’ savings against the effects of climate change. Our climate scenario modelling allows us to evaluate how climate risk will impact GDP and inflation. In turn, we can invest in assets and strategies that are insulated against these factors.

Pleasingly, following COP26 last year, most countries have net zero targets. And increasingly, these targets are embedded into law and policy documents.

At HESTA, we were the first major super fund to commit to reducing carbon emissions across the investment portfolio to achieve net zero by 2050, as a part of our Climate Change Transition Plan.

 

 

super performance

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

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