Meet the new CEO
In my first message to you as HESTA CEO, I share what drew me to HESTA and what you can expect from me.
work
In this update, we recap this quarter’s performance and market news, and reflect on how our 25 years of Responsible Investment continues to shape the way we invest.
All Super and Income Stream ready-made options have delivered positive returns over the 12 months to 30 September 2026. And importantly, these options have all achieved returns above their long-term 10-year objectives to 30 September 20261.
performance
Super and Transition to Retirement
For Super and Transition to Retirement (TTR) members, our Balanced Growth option returned 6.69% over the 12 months to 30 September 20261.
Balanced Growth option (MySuper) returns to 30 September 2026
Retirement Income Stream
For Retirement Income Stream (RIS) members, our Balanced Growth option returned 7.62% over the 12 months to 30 September 2026, and our Conservative option returned 4.86% over the same period1.
RIS Balanced Growth option returns to 30 September 2026
RIS Conservative option returns to 30 September 2026
You can view all our returns on our Income Stream performance page.
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.
1 Investments may go up or down. Past performance is not a reliable indicator of future performance. Returns are net of investment fees and costs, transaction costs and taxes.
market news
Investors continued backing share markets during the September quarter, despite ongoing geopolitical tensions. For most HESTA members, this meant continued super earnings, with our diversified approach helping balance the uneven equity and bond market returns.
US equities continued to climb
US shares rose over the quarter, driven by strong company earnings and led by technology and energy.
ASX posted modest gain
Australian shares also rose slightly for the quarter. Standout sectors included resources and healthcare, while financials fell slightly under the weight of a slower housing market.
Central banks continued raising rates
September saw global central banks such as the US, Europe and Japan synchronise rate hikes, citing persistent above-target inflation. Closer to home, the RBA also delivered its fourth hike to 4.6%.
Challenging period for bonds
Bond yields continue to climb, reflecting higher cash rates and competition with strong corporate issuance. Australian 10-year and US 10-year yields both rose; higher yields mean existing bond prices fall, which impacted bond returns this quarter.
Steady confidence in unlisted
Investor appetite for real assets continues, helping to steady the volatility of listed and bond markets. This comes from a long-running cycle in energy, digital infrastructure and transport, driven by decarbonisation and longer-term underinvestment.
25 years of responsible investment leadership
Responsible investment has long shaped how HESTA invests across the whole of the fund. Every HESTA member benefits from the same rigorous approach to how we respond to risks and opportunities like climate change, biodiversity loss and inequality, wherever their super is invested.
HESTA's leadership on this front stretches back more than two decades, beginning with a series of early global commitments.
ACSI founding member
In 2001, HESTA became a founding member of the Australian Council of Superannuation Investors (ACSI), helping establish how Australian investors engage with the companies they own.
Commitment to the Principles for Responsible Investment
In 2006, HESTA was one of the first super funds in the world to sign the United Nations-backed Principles for Responsible Investment, a commitment that continues to guide our investment approach today. Over the years, we’ve integrated responsible investment factors throughout our investment process, including asset allocation, through rigorous data and a range of tools to support strong long-term returns.
40:40 Vision
HESTA has also played a role in establishing new programs for others to join. In 2020, we founded 40:40 Vision, an investor initiative pushing for gender balance in ASX company leadership, on the basis that diverse leadership supports better long-term decisions for members. This ongoing work has also been recognised externally, by an external industry body.
Responsible Super Fund Leader
In 2026, HESTA was again named a Responsible Super Fund Leader by the Responsible Investment Association Australasia+, reflecting our commitment to responsible investment practices and focus on delivering measurable outcomes.
Our approach keeps evolving
Twenty-five years on, our approach keeps evolving to meet new challenges, but the reason behind it stays the same. Responsible investment is a critical part of how we work to protect and grow every member's retirement savings, across the whole portfolio, for the long term.
+ Product ratings and awards are only one factor to be taken into account when making a decision about a financial product. See hesta.com.au/ratings for more information.
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