investment beliefs

At HESTA we invest in and for people who make our world better. Today, we are a global investor overseeing a diversified global portfolio across listed and unlisted markets. We use our scale, positive net cash flow, and long investment horizon to “invest for tomorrow” by focusing on emerging growth opportunities and taking advantage of market volatility.


We are a significant fund with a diverse and talented team of investment professionals, complemented by a global network of trusted partners. This includes being an owner of a number of collective organisations that share our profit to member ethos and provide aligned, quality, cost-effective access to global investment advice and opportunities. We are focused on delivering competitive net return outcomes for our members.

We have a history as a leader in responsible investment and seek to use our expertise and influence to deliver strong long-term returns while accelerating our contribution to a more sustainable world. ​

We call this ‘investment excellence with impact’: central to delivering our vision for Super with impact™.

 

 

 


our investment beliefs

 

 

1. As long-term investors, our members’ best financial interests are served by a deep commitment to responsible investment
 

  

HESTA recognises the importance of pursuing a growing, sustainable and inclusive economy. By managing systemic risks (such as climate change), integrating responsible investment factors, catalysing innovative investments, and being a ‘gutsy advocate’ for a fair and healthy community, we can deliver strong, long-term returns for our members and help accelerate our contribution to a more sustainable world.


 

2. A forward-focused total portfolio approach strengthens alignment with investment objectives
 

  

Market returns vary over time, but are somewhat predictable over the medium-to-long term. A total portfolio approach actively balances forward returns and risks with an unwavering focus on investment and impact objectives. A total portfolio approach facilitates the sharing of diverse ideas and market insights, encourages cross-team challenge and collaboration, and builds conviction to drive performance.


 

3. Targeted active management, working alongside leading global partners, delivers outperformance
 

  

Cost effective strategies that provide broad market exposure, combined with targeted and dynamic active management where inefficiencies are identified that can be exploited efficiently, have the potential to enhance returns, protect capital, whilst providing unique market insights and opportunities. Our hybrid model, which combines internal capability working together with a global network of trusted expert partners, is expected to improve net returns to members.


 

4. Proactive and strategic risk awareness creates portfolio resilience
 

  

We must take investment risks to generate returns. Risk awareness requires us to understand the world around us and how it is evolving, including the impact of valuations, business cycles, thematics, economic environments and responsible investment factors to build more resilient portfolios. Success requires proactive risk analytics, stress testing and scenario analysis, as well as disciplined mitigation activities and active ownership.


 

5. Value can be enhanced by effective governance, harnessing technology and data, and disciplined implementation
 

  

Good governance promotes effective decision-making and accountability. Harnessing ‘fit-for-purpose’ technology and data can improve investment insights, and also supports disciplined implementation which reduces costs, improves net returns and minimises execution risks.

 

 

 

investment excellence with impact

We use our expertise and influence to deliver strong long-term returns while accelerating our contribution to a more sustainable world.