Australian Retirement Trust vs HESTA
We've compared the fees, investment options and performance for both Australian Retirement Trust and HESTA to help you choose between these two popular super funds.
Key takeaways
- Australian Retirement Trust's default MySuper option (the Lifecycle High Growth Pool, for members under 50) has out-performed HESTA's default Balanced Growth option over the long term, but the two funds have different risk profiles, so it isn't a like-for-like comparison.
- HESTA's default MySuper product charges lower fees than Australian Retirement Trust's product.
- Australian Retirement Trust offers more investment options than HESTA.
Australian Retirement Trust vs HESTA
| Australian Retirement Trust | HESTA | |
|---|---|---|
| Type of fund | Industry super fund | Industry super fund |
| Number of members | 2.4 million members | 1 million members |
| Default investment option | Australian Retirement Trust - Lifecycle This fund is a pre-mixed, diversified fund that invests in a range of assets with a strong allocation towards Australian and international shares and is an authorised MySuper product. This product is a lifecycle fund that will automatically reduce your exposure to high-risk assets like shares as you get closer to retirement. It's split into three different life stages. You'll be invested in the High Growth Pool until you're 50. | HESTA Balanced Growth This is a ready-made investment portfolio with a strong focus on shares, private equity and infrastructure. Unlike Australian Retirement Trust - Lifecycle, the investment allocation is the same for all members in the HESTA Balanced fund, regardless of age. It's an authorised MySuper product. |
| Performance | Past performance of Australian Retirement Trust - Lifecycle High Growth Pool
| Past performance of HESTA Balanced Growth:
|
| Fees for default product | Here's how much you'd pay in fees for one year if you had the following amounts invested in this product:
| Here's how much you'd pay in fees for one year if you had the following amounts invested in HESTA Balanced Growth:
|
| Additional diversified investment options | If you don't want to invest in the default option (Australian Retirement Trust Lifecycle), you can choose to invest your super in one of the following pre-made investment options instead:
| If you don't want to invest in the default option (HESTA Balanced Growth), you can choose to invest your super in one of the following pre-made investment options instead:
|
| Single asset class investment options | If you want to design your own investment mix, you can invest your super in one or more of the following individual asset classes:
| If you want to design your own investment mix, you can invest your super in one or more of the following individual asset classes:
|
| Ethical investment | The Australian Retirement Trust Socially Conscious Balanced investment option avoids investment in companies that generate more than 5% of their revenue from alcohol, tobacco, gambling, pornography, coal or nuclear power manufacturing among other harmful industries. This fund is certified by the Responsible Investment Association Australasia. Past performance:
If you had $50,000 invested in this product you'd pay annual fees of $467.40. | The HESTA Sustainable Growth option invests in companies "with above average environmental, social and governance performance". It lists its top 20 holdings on its website. Past performance of HESTA Sustainable Growth:
If you had $50,000 invested in HESTA Sustainable Growth you'd pay annual fees of $527. |
| Mobile app | Yes | Yes |
Our expert says: Choosing a super fund
"Choosing super funds can feel overwhelming, but it gets easier once you've narrowed it down to a couple of options. If you can't decide between two similar funds, compare the fees and fund performance. Don't just look at the last year, but look at 5 and 10-year performance. And make sure you're comparing similar fund options. A high growth fund will have different performance to a balanced fund. "
How do the default MySuper products compare?
Australian Retirement Trust's default MySuper product is a lifecycle product that invests according to your age, while HESTA's does not.
Because Australian Retirement Trust's option invests in line with your age, members are invested in the high growth option until they're 50. As such, members are exposed to more growth assets compared to those with HESTA and Australian Retirement Trust has earned higher long-term returns as a result.
How do their fees and performance figures compare?
Both these funds are among the top-performing MySuper products in the market. However, Australian Retirement Trust's default product (the higher-growth Lifecycle High Growth Pool) has delivered higher returns than HESTA's default Balanced Growth option over the short and long term – bear in mind these funds have different risk profiles, so it isn't a direct like-for-like comparison.
In terms of fees, HESTA charges lower fees than Australian Retirement Trust - but the difference is only minor.
How do the additional investment options compare?
You've got more choice of investment options with Australian Retirement Trust. HESTA offers 4 additional pre-mixed portfolio options while Australian Retirement Trust offers 8. For single asset class options, HESTA offers 5 while Australian Retirement Trust offers 7.
Both funds offer an indexed fund option, so if you're looking to invest your super in an indexed fund you can do this with either one.
If you're unsure how these different options work with your super fund, here's a guide on superannuation investment options and how to choose between them.
Expert insight
"Thanks to recent mergers, Australian Retirement Trust is now one of the biggest super funds in the country in terms of member numbers and assets under management. This size ensures lower operational costs, which would be a contributor to lower fees and slightly better performance. However, HESTA, as the industry fund for the healthcare industry, uses its size and position to advocate for gender equality which may appeal to you."
Want to keep comparing?
If you're not yet convinced that either of these funds is right for you, or you simply want to see how they compare to others in the market, you can compare super funds with our guide.
Frequently Asked Questions
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I have been retired since 2020, had a small business and very little super total of 2 accounts just changed by advisers. my wife is also now with Expand used to be Navigator for bot. I am not happy with our advisers allowing the fund managers to keep losing money for us. We are both 75 and own our home.
Hello John,
If you’re not happy with your advisors and your current super set up, you could find another advisor. You can also compare your options yourself, depending on what you’re looking for. There’s no point losing money on fees when you’re not happy with the service.