HESTA continues to deliver top-performing investment returns for our members. As we moved into the new financial year, the HESTA investment options performed strongly throughout July and August. In particular, growth assets maintained momentum following the strong economic recovery over the past 12 months. Market optimism continued to grow as COVID restrictions showed signs of easing and vaccination rates climbed.
We are proud to report that HESTA was ranked as one of the leading superannuation funds by SuperRatings, an independent ratings consultant, as of 30 June, 2021. HESTA Balanced Growth, High Growth and Conservative options were all highly ranked. And best of all, HESTA Sustainable Growth was ranked as the best performing balanced investment option in Australia over 15 years.
Toward the end of September, the heat started to come off financial markets. This was primarily driven by two factors. Firstly, inflationary pressure remains persistent. If inflation rises quickly, it increases costs and devalues investments. Secondly, concern was raised about whether Evergrande, a large Chinese property developer, could repay its growing level of debt, and the effect that could subsequently have on global markets.
It is not unusual that the presence of market volatility prompts some investors to sell risk assets, particularly after a period of very strong growth and profits. However, whilst this sort of selling activity does temporarily drive market prices down, it is speculative and short-term orientated. Therefore, it’s not a strategy adopted by the investment team at HESTA, who instead focus on the long term.
Overall, the recent September quarter saw a range of investment performance. And that trend has continued during October. Some sectors have performed strongly, others have pulled back. However, because HESTA prioritises diversification and long-term investment performance, our returns have remained strong.
Here are the returns for HESTA Balanced Growth Option for the September 2021 quarter.
* 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.
Performance figures above are for Balanced Growth Super (Accumulation). Please use the link below to view all the latest return figures for all HESTA investment options across super and income stream options.
Globally, share markets have repeatedly hit record highs this calendar year.
With this strong investment performance, it is easy to forget that market risk is always present, and markets will fluctuate in value.
As a result, it’s important for HESTA members to think carefully about their investment choices. Are your investment decisions properly aligned with your personal risk tolerance and financial plan? It’s important to step away from the financial noise and instead focus on the most appropriate investment option for you.
If you need assistance with your investment decisions, our advice team can help.
A new addition to the world of superannuation, is the Your Super, Your Future Performance Test. We are pleased to report that HESTA has passed the performance test.
Each year, the Australia Prudential Regulatory Authority (APRA) will publish which super funds have passed or failed the performance test. This is designed to bring clarity and accountability to investment performance.