HESTA has reported an annual return of 10.46 per cent for its balanced growth investment option for the 2023 calendar year.
In a post on LinkedIn, chief executive Debby Blakey called the result an “outstanding” outcome for HESTA’s members and a “top-tier result” compared to the fund’s peers.
Additionally, the fund’s balanced growth option returned 7.4 per cent per annum over a 10-year period to 31 December.
“These results are testament to the entire HESTA team, who every day go above and beyond to bring our robust investment strategy to life,” Ms Blakey wrote on LinkedIn.
“These results also remind me of the true strength of our nation’s $3.5 trillion super system. For 30 years compulsory super has given working Australians exposure to high-quality assets around the world – resilient and responsive portfolios that can perform through ever-changing market conditions.”
“We’re poised to take advantage of any short-term volatility that may emerge. We’ve reduced our exposure to some risk assets while continuing to build liquidity that helps ensure we’re ready to take advantage of attractive long-term buying opportunities,” Ms Blakey wrote.
Additionally, HESTA, which was named as one of the Responsible Super Fund Leaders in 2023 by the Responsible Investment Association Australasia (RIAA), highlighted the energy transition as an important area in which it sees opportunities to create long-term investment value.
“The energy transition is an area where we see opportunities for impact as a long-term responsible investor, particularly as we’ve committed to investing 10 per cent of our portfolio in climate solutions by 2030,” Ms Blakey said.
“Aligned with our focus on climate action, we’ve deployed capital into various investment opportunities with the appropriate risk-return profiles, including green bonds.
“This can help us continue delivering strong long-term investment performance while supporting the shift to a low-carbon economy.”
Ultimately, Ms Blakey said, “2024 is going to be a critical year for super”.
“Super funds have a unique opportunity as custodians of our world-class super system to help make it even stronger for future generations. It’s a privilege to start the year with this shared focus on how we can make a lasting difference for our members and the millions of working Australians who depend on super to deliver a dignified, equitable retirement.”
Last week, $75 billion fund Rest also revealed its calendar year results of 9.5 per cent for its flagship core strategy investment option.
Maja Garaca Djurdjevic
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.
