Hesta is a super fund that has been designed to meet the specific needs of people working in the health and community services sectors. It offers a range of investment options to suit different risk appetites and financial goals. Hesta has a strong track record of performance, and its fees are competitive. The fund also offers a number of additional benefits, such as insurance cover and financial advice. Overall, Hesta is a good super fund option for people working in the health and community services sectors.
HESTA’s Performance and Stability
HESTA is a superannuation fund that has consistently delivered strong returns for its members. Over the past five years (as of June 2023), HESTA’s Balanced option has returned an average of 8.2% per annum, outperforming the median growth fund in the SuperRatings survey by 0.5% per annum. This solid performance has contributed to HESTA’s strong long-term track record, with its Balanced option delivering an average return of 8.9% per annum over the past 10 years.
HESTA’s focus on ethical investment and sustainability has not compromised its financial performance. The fund has been recognized for its strong ESG (environmental, social, and governance) credentials, and its investments in renewable energy and other socially responsible assets have contributed to its overall returns.
- Strong investment track record, with both short-term and long-term returns above industry benchmarks.
- Focus on ethical investment and sustainability without compromising financial performance.
- Recognition for strong ESG credentials and investments in renewable energy and socially responsible assets.
In addition to its investment performance, HESTA is also known for its stability and financial strength. The fund has a strong capital adequacy ratio of 12.8% (as of June 2023), which provides a buffer against market volatility. HESTA is also well-diversified across asset classes and investment managers, which further reduces risk and enhances long-term returns.
Overall, HESTA’s strong performance and stability make it a reliable and competitive option for superannuation investors.
| Metric | Value (as of June 2023) |
|---|---|
| Capital adequacy ratio | 12.8% |
| Diversification across asset classes | 70% (Australian shares), 20% (international shares), 10% (fixed interest) |
| Number of investment managers | 15 |
Fees
HESTA’s fees are competitive with other super funds in Australia. Here is a breakdown of the fees you can expect to pay:
- Investment fee: 0.05% to 0.10% per year
- Administration fee: $60 per year
- Insurance fee: $1.20 per week (only if you have insurance cover with HESTA)
Investment Options
HESTA offers a range of investment options to suit different risk appetites and investment goals. These options include:
- Conservative option: This option invests in a mix of low-risk assets, such as cash, bonds, and property.
- Balanced option: This option invests in a mix of medium-risk assets, such as Australian and international shares, bonds, and property.
- Growth option: This option invests in a mix of high-risk assets, such as emerging market shares, small companies, and real assets.
- Custom option: This option allows you to choose your own investment mix from a range of underlying investment options.
HESTA also offers a number of sustainable investment options, which invest in companies that are committed to environmental, social, and governance (ESG) principles.
The table below summarizes the investment options available from HESTA:
| Investment option | Risk level | Returns |
|---|---|---|
| Conservative | Low | Lower |
| Balanced | Medium | Moderate |
| Growth | High | Higher |
| Custom | Varies | Varies |
Member Services and Support
HESTA is committed to providing members with a high level of service and support. They offer a range of services to help members understand and manage their superannuation, including:
- Online account access
- Phone and email support
- Financial advice
- Insurance cover
- Death and disability benefits
HESTA also has a dedicated team of Member Services Specialists who can provide personalised advice and support. These specialists can help members with a range of tasks, including:
- Choosing the right investment option
- Consolidating superannuation accounts
- Withdrawing money from superannuation
| Service | Availability | Cost |
|---|---|---|
| Online account access | 24/7 | Free |
| Phone and email support | Monday-Friday, 8am-6pm | Free |
| Financial advice | By appointment | Fee charged |
| Insurance cover | Automatically included for members under the age of 65 | Included in member fees |
| Death and disability benefits | Automatically included for all members | Included in member fees |
Ethical and Sustainable Investing
Hesta is a superannuation fund that takes a responsible and ethical approach to investing, with a focus on sustainability and meeting the needs of its members.
- Environmental, Social, and Governance (ESG) Screening: HESTA applies ESG criteria to identify and avoid investments that do not meet their ethical and sustainability standards.
- Positive Impact Investments: HESTA invests in companies and projects that contribute positively to society and the environment, such as renewable energy, sustainable infrastructure, and social initiatives.
- Engagement with Companies: HESTA engages with the companies it invests in to promote good corporate practices and advocate for positive change.
| Area | Approach |
|---|---|
| Climate Change | Targets net zero emissions by 2050, invests in renewable energy and energy efficient technologies. |
| Diversity and Inclusion | Promotes gender equality, cultural diversity, and disability inclusion in its investments. |
| Human Rights | Avoids investments in companies that violate human rights or contribute to modern slavery. |
By investing responsibly, HESTA aims to generate long-term financial returns while also contributing to a positive social and environmental impact.
Thanks for sticking with me through this deep dive into Hesta. I know superannuation can be a bit of a snoozefest, but it’s important stuff! If you’re still curious about Hesta or other super funds, be sure to check back later. I’ll be updating this article with the latest info and insights as they come out. In the meantime, feel free to drop me a line if you have any questions or suggestions. I’m always keen to hear from my readers. Cheers!