HESTA superannuation | Performance, features and fees

HESTA - Core Pool

An industry super fund with several investment options, competitive fees and an authorised MySuper product.

HESTA is an industry super fund, which means that all its profits go towards benefiting its members, not its shareholders. If you’d like your superannuation managed for you, you can choose from four main investment pools and let HESTA do the rest. Or, if you’d like more control, you can choose your own investment strategy from a range of asset classes.

What are the key features of HESTA superannuation?

• Industry super fund. HESTA is an industry fund meaning all profits go back into the fund to benefit members, not shareholders. Industry funds have a reputation for having strong performance returns and low fees.
• MySuper product available. HESTA offers a default MySuper authorised investment option. MySuper products are no-frills, low-fee options for Australians.
• Up to 11 different investment options. Members can choose from 11 different ways to invest their super, based on their risk tolerance and how hands on they want to be.
• Sustainable investment option available. HESTA offers a sustainable investment options, Eco Pool, for members who want their super to be invested more ethically.
• Insurance fee-free cover while on parental leave. Parents can be eligible for up to 12 months of fee-free insurance cover while on parental leave.

What investment options are available?

HESTA offers several different ways to invest, depending on your risk appetite and how involved you want to be. You can choose between four pre-made investment pools which offer ready made diversified investment options that are managed on your behalf. Or, you can choose between a range of single asset options to design your own investment portfolio. The past performance figures as well as asset allocation for each investment option are detailed below.

• Option 1: Ready-made investment pools

  HESTA makes superannuation easy by offering four ready-made investment pools to choose from. Simply select the strategy that suits you best and HESTA will do the rest. The Core Pool is HESTA's default option for those who don't select which strategy they'd prefer. This strategy is also the authorised MySuper product, enabling employers to make compulsory superannuation guarantee contributions to employees who haven't chosen their own fund.

  The four ready-made investment pools are detailed below.

  Investment pool	Investor type	Performance in the past five years*	Target asset allocation
  Core Pool (MySuper default option)	Assertive	7.19%	Australian shares: 17-37% International shares: 16-36% Private equity: 0-12% Alternatives: 0-15% Infrastructure: 5-25% Property: 3-20% Global debt: 5-25% Cash: 0-30%
  Conservative Pool	Defensive	8.32% p.a.	Australian shares: 5-20% International shares: 5-15% Alternatives: 0-15% Infrastructure: 2-15% Property: 2-15% Global debt: 20-40% Cash: 10-30%
  Shares Plus	Aggressive	9.23% p.a.	Australian shares: 25-50% International shares: 25-50% Private equity: 5-15% Alternatives: 0-10% Infrastructure: 2-20% Property: 2-15% Global debt: 0-10% Cash: 0-25%
  Eco Pool	Aggressive	10.93% p.a.	Australian shares: 23-47% International shares: 17-41% Private equity: 0-10% Alternatives: 0-15% Infrastructure: 0-20% Property: 0-20% Global debt: 5-25% Cash: 2-20%

  *Investment performance was correct as of 30 June 2019. Past performance is not an indicator of future performance.

• Option 2: Choose your own investment

  This option is for more experienced investors who are comfortable being in control of their asset allocations. You can choose from seven asset classes, as detailed below.

  Asset class	Performance in the past five years*	Target asset allocation range
  Cash	2.02% p.a.	Cash: 100%
  Global bonds	4.40% p.a.	Global debt: 50-100% Cash: 0-25% Alternatives: 0-30%
  Property	9.30% p.a.	Cash: 5-15% Australian and international listed property: 85-95%
  Infrastructure	10.84% p.a.	Cash: 5-15% Infrastructure: 85-95%
  International shares	9.91% p.a.	Cash: 0-25% International shares: 75-100%
  Australian shares	8.44%	Cash: 0-25% Australian shares: 75-100%
  Private equity	11.61%	Cash: 5-15% Private equity: 85-95%

  *Investment performance was correct as of 30 June 2019. Past performance is not an indicator of future performance.

What are the fees and charges?

With HESTA, you do not pay any entry fees, account set-up fees or exit fees, nor do you pay any fees for buy-sell spreads. You can also switch investment options at any time for free.

Fees vary depending on the investment option you select. Click below to see a breakdown of the different fees applied to the various investment options available.

• Fees applied on all HESTA superannuation investment options

  Admin fees

  The HESTA super product has an annual admin fee of $65, which is deducted from your account in monthly installments. There is also an admin fee of 0.08% p.a. for the Core Pool and 0.10% p.a. for all other investment options on top of the flat $65 annual fee.

  Additional fees: Indirect cost ratio and Investment fee

  There is an investment fee and an Indirect Cost Ratio (ICR) fee applied to each investment option as a percentage of the account balance. These charges are deducted from your investment earnings before they’re applied to your account, and are as follows:

  	Investment fee (total % p.a)	ICR (Total % p.a)
  Conservative Pool	0.49	0.05
  Eco Pool	1.09	0.04
  Shares Plus	0.74	0.15
  Cash	0.07	0.00
  Global Bonds	0.58	0.00
  Property	1.20	0.22
  Infrastructure	0.80	0.20
  International Shares	0.63	0.01
  Australian Shares	0.43	0.00
  Private Equity	2.34	1.24

  *Fees correct as of 30 June 2019. For a more detailed breakdown of the fees and charges, read the product disclosure statement (PDS) available on HESTA’s website.

What insurance cover is available?

Automatic death and income protection cover is applied to your account when you join. You can opt out of this if you wish when you join, or cancel at any time after your account is opened. You can also tailor it to better suit your needs. You can also apply for lump-sum total and permanent disablement (TPD) cover if you wish.

How do I join HESTA?

If you’ve decided that HESTA’s super account is right for you, you can apply online by filling out the application form.

You will need to supply:

• Personal details. You’ll need to provide your personal contact details including your Australian residential address.
• Previous super fund details. If you’d like to consolidate an existing super fund with your new fund online, you will need to provide your current fund details.

You will need to select:

• Investment option. You’ll be asked to choose your investment option from those detailed above, so consider this before beginning your application. If you don't make a choice your super will be invested in the Core Pool.
• Insurance instructions. You’ll be asked if you’d like to opt out of or tailor the default insurance policies, as detailed above.