member outcomes assessment

The majority¹ of HESTA’s accumulation members are invested in the MySuper Balanced Growth option which continued to perform strongly and achieved net returns better than the median for MySuper products for the 1, 3, 5 and 10 year periods.²

Net returns for the majority of our Accumulation choice options performed better than the median over all time periods when compared to other investment options with a similar investment strategy.

Net returns for the majority of our Income Stream choice options performed better than the median over all time periods when compared to other investment options with a similar investment strategy. 

¹ At 1 July 2024, 87.3% of HESTA’s members invested in HESTA’s MySuper product.

² Median is based on the SuperRatings SR50 MySuper Index. Returns are after tax and investment management expenses but before the deduction of administration fees over the specified period to 30 June 2024. Excludes insurance fees (for the avoidance of doubt). Past performance is not a reliable indicator of future performance.

HESTA sets long-term investment objectives for all Ready-Made options that reflect the objective of achieving a positive real return (a return greater than the rate of inflation). Your Choice options have investment objectives based on asset class indices where appropriate.

HESTA adopts a long-term asset allocation for each option that focusses on building a diversified portfolio of investments across and within asset classes. Because financial conditions change over time we actively adjust asset allocations and positions to improve probabilities of achieving the investment objectives. Our asset allocation process also considers a variety of risk factors and options’ sensitivity to different stressed market conditions, both historical and forward looking.

The Fund invests in strategies managed by our internal teams as well as by external managers and uses its size to deliver economies of scale.

Our assessment found that our investment strategy remains appropriate.

HESTA aims to provide insurance benefits that are accessible and inclusive for the unique needs of our members in accumulation products.

Most HESTA insured members hold default cover. Our default cover design is generally intended to provide members with a minimum level of cover.

Our analysis found that for members in our accumulation products, our insurance strategy remains appropriate. 

We aim to keep our fees competitive to maximise retirement outcomes for our members.

Our assessment concluded that our administrative and investment fees were below the median fee for most options when compared to other options with similar investment strategies and are appropriate for members currently invested in HESTA products.

Our assessment found that HESTA’s options, benefits, and facilities were well utilised by members and the range of services we offer members are similar to our peers. We considered the fees and costs for these options, benefits and facilities is appropriate and compares favourably to comparable funds.

We are a specialist fund with more than a million members³, and we use our scale and size to deliver value to all our members. We assessed that our scale does not disadvantage members in our products when compared against most funds in the market.

³ As at 1 July 2024