HESTA'S receipt of an Australian Institute of Superannuation Trustees (AIST) super investment award for excellence last week has vindicated its focus on zero-tax investment options, the health and community sector super fund has claimed.
The award recognised HESTA's new income stream default strategy, which combines the super fund's 'balanced' and 'defensive' investment options, while separating equities assets. The strategy is targeted at members who are entering retirement and thereby entering a zero-tax environment.
"We've separated out the Australian equities assets so each can be managed according to their own tax status, identifying products specifically designed for income stream members that appropriately consider the unique opportunities available to zero-tax investors," said Rob Fowler, executive manager, investments and governance, at HESTA, in a statement following issue of the award.
HESTA's contention is that certain instruments - such as derivatives for example - may change, depending on whether assets are managed with a view to accumulation or income stream, causing the fund to develop a specific and separate focus on retirement members.
The super fund has appointed three fund managers to oversee Australian equities for the retirement/income stream solution. These managers will "offer strategies specifically considering tax from the perspective of income stream members, and we will continue to seek other appropriate strategies as the asset scale continues to grow," said Fowler.
HESTA suggests the award has affirmed its "industry-leading" approach to after-tax investment options. In 2009 HESTA commenced the practice of measuring and remunerating Australian equities managers on their after-tax investment, claiming it was the first national fund to do so.
