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 dafault 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	9.50% p.a.	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	6.63% 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	10.64% 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	11.31% 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 2018. 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	2.15% p.a.	Cash: 100%
  Global bonds	4.07% p.a.	Global debt: 50-100% Cash: 0-25% Alternatives: 0-30%
  Property	9.93% p.a.	Cash: 5-15% Australian and international listed property: 85-95%
  Infrastructure	10.02% p.a.	Cash: 5-15% Infrastructure: 85-95%
  International shares	12.29% p.a.	Cash: 0-25% International shares: 75-100%
  Australian shares	10.11%	Cash: 0-25% Australian shares: 75-100%
  Private equity	13.22%	Cash: 5-15% Private equity: 85-95%

  *Investment performance was correct as of 30 June 2018. 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.

Example of annual fees based on $50,000 in the Core Pool (default option)

Annual admin fee: $76.47 plus 0.09% of balance.

Indirect cost ratio (including investment fees): 0.9%

Calculated annual cost on $50,000 balance: $573.53