investment update: november 2023

Investment returns have remained resilient even within a challenging economic environment. And our commitment to Super with impact™ is driving some promising investment opportunities for our members.

investment excellence

All Super and Income Stream ready-made options have delivered strong returns over the 12 months to 30 September 2023. And importantly, these options have all achieved returns above their long-term 10-year objectives to 30 September 2023¹ (except Indexed Balanced Growth which only commenced on 1 October 2020).

For Super and Transition to Retirement (TTR) members, our Balanced Growth option returned 10.07% over the 12 months to 30 September 2023¹.

For Income Stream members, our Balanced Growth option returned 11.99% over the 12 months to 30 September 2023, and our Conservative option returned 7.04% over the same period¹.

Super and Transition to Retirement

The Balanced Growth option for accumulation and TTR returns to 30 September 2023

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.

You can view all our returns on our Super performance page or Transition to Retirement performance page.

Retirement Income Stream

Retirement Income Stream Balanced Growth option returns to 30 September 2023

Retirement Income Stream Conservative option returns to 30 September 2023

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.

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 all our returns on our Income Stream performance page.

market news

In early October, the Reserve Bank of Australia (RBA) kept interest rates at 4.1% for the fourth consecutive month. However, some economic indicators such as employment, wages growth and inflation remain resilient to rate rises to date, and so the likelihood of an additional interest rate increase remains elevated.

The higher rates filtered through to financial market performance, with bond yields rising and equity markets falling in September. Despite September being a challenging month for financial markets, growth assets have produced strong returns in the 12 months leading up to 30 September 2023.

super with impact™

We’re thrilled to share some new investment opportunities that are helping us to deliver on our vision for Super with impact™².

HESTA has invested in medical technology innovation with Heidi Health, and in revolutionary breast cancer treatment through our relationship with Brandon Capital. You can read about these investments in investing in health technology.

And we’ve recently broken ground on our inaugural build-to-rent project, with construction beginning on our investment with Super Housing Partnerships. Read more here.

The ability to deliver strong long-term returns to members requires a growing, sustainable, and inclusive economy—and Australia’s listed companies also have a role to play in achieving this.

Each year we write to the Chairs and CEOs of ASX300 companies ahead of the annual general meeting season to outline the priority themes that will shape our voting decisions and engagement.

This year we’ve identified climate change, gender equality, decent work, and natural capital and biodiversity loss as the most material issues to our portfolio and long-term investment returns.

Just a few of the topics we’re discussing with portfolio companies include:

• how are they helping support Australia’s climate transition?
• are they providing quality jobs with appropriate security, control, conditions and pay?
• do they have female representation in executive teams?

We look forward to working with companies to address the issues that can impact long-term returns for our members and in doing so, pursuing a strong and stable Australian economy for all.

You can read more about our annual letter to ASX300 companies and our priority active ownership themes.

¹ Investments may go up or down. Past performance is not a reliable indicator of future performance.

² For more information on Super with impact™, see www.hesta.com.au/impact.