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What the Researchers Say:

A "best value for money" fund. Well balanced across all key assessment criteria in a robust, secure and proven risk framework. The fund provides features that should assist most individuals to meet their retirement goals.

You should contact your financial adviser or this fund before making an investment decision.

  • Platinum
  • 7 Year Platinum Performance
  • Infinity Recognised
Awards
Fund data valid as of April 30, 2016

Typical Fees

Balance This Fund Industry Average Difference
50k $421 $700 -$279
250k $1,616 $3,016 -$1,400
500k $3,141 $5,720 -$2,579

Investment Allocation

Intl shares 27.0%
Aus shares 27.0%
Property 9.0%
Alternative 10.2%
Fixed interest 20.8%
Cash 6.0%

Fees & Charges

Membership Fee $91
Asset Admin Fee 0.28%
Investment Fee 0.38%
Switching Fee $30
Exit Fee $0
Account Size Discount Yes
Employer Size Discount N/A

Fund Features

Financial Planning Service
Health Insurance
Home Loans
Credit Cards
Binding Nominations
Non-lapsing Binding Nominations
Insurance Life Event Increases
Anti-detriment Payments
Long Term Income Protection

About this Fund

Membership 828,869
Total Assets $33,784,556,376
Year Started 2007
Target Market
Offered to Public?
Fund Type Industry-Allocated Pension

Fund Highlights - provided by HESTA Income Stream

Choice of two HESTA retirement options -Transition to Retirement Income Stream and Retirement Income Stream.
Under particular circumstances, HESTA members may be able to have certain fees for retirement planning services deducted from their HESTA account.
Online access to accounts, enabling members to manage their income stream 24/7.

Investment Option Performance

Asset Allocation Category FYTD FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 Comparison
Balanced 8.84%
15.60%
15.84%
1.30%
7.50%
Fund
Benchmark
Secure 4.91%
1.92%
7.54%
8.25%
7.37%
11.01%
5.73%
12.60%
5.34%
3.18%
Fund
Benchmark
Diversified Fixed Interest 3.17%
3.10%
3.69%
4.29%
4.70%
6.40%
Fund
Benchmark
Growth 11.91%
1.40%
19.88%
11.50%
21.95%
15.91%
-1.93%
19.45%
8.22%
-1.21%
Fund
Benchmark
Australian Shares 6.31%
1.67%
20.65%
6.75%
20.08%
18.31%
-5.31%
23.30%
10.80%
-6.67%
Fund
Benchmark
Overseas Shares 18.74%
-3.54%
20.06%
20.36%
25.53%
19.88%
0.99%
29.76%
6.44%
-3.07%
Fund
Benchmark
Capital Stable 6.73%
2.20%
10.54%
6.35%
10.27%
8.17%
5.11%
9.14%
6.09%
4.79%
Fund
Benchmark
Property 9.06%
10.54%
9.79%
10.92%
6.81%
10.68%
7.97%
12.91%
5.78%
7.92%
Fund
Benchmark
Cash 2.90%
1.89%
2.99%
2.61%
3.83%
2.78%
4.60%
3.48%
5.06%
4.76%
Fund
Benchmark
  • Legend:
  • Outperformed average
  • Underperformed average
  • Negative returns

Annualised figures are the average per year returns of the rated option based on the cumulative returns for the past 5 years to 30/06/2015, past performance is not a reliable indicator of future performance. Performance and fee data is based on the option which is rated by SuperRatings and stated on each product's landing page.

Benchmark investment information - how performance is measured

To ensure comparability for consumers, the RateCity superannuation comparison is based on the asset allocation of each of the MySuper/Pension products, irrespective of the name of the investment option. This methodology allows consumers to compare products on a like for like basis and removes any ambiguities associated with the name of the investment option. For example, an investment option may be classified as growth, however its asset allocation may in fact mean it should be classified as high growth. By using the asset allocation as the dominant identifier, we believe this provides the most robust framework for consumers to compare funds and recognise that this is a consistent approach to that of SuperRatings methodology.

Option Type Percentage of Growth Assets
min-max %
High Growth 91-100%
Growth 77-90%
Balanced 60-76%
Conservative Balanced 41-59%
Capital Stable 20-40%
Secure 0-19%

What the researchers say

HESTA is the largest industry fund for people in Health and Community Services, with membership also open to the general public. HESTA is Infinity Recognised, which is a result of its strong commitment to environmental and social principles. HESTA Income Stream opened in 2007 and a minimum initial investment of $50,000 is required to commence membership.

Members are provided with a range of investment options to choose from, consisting of 5 Diversified and 5 Single Sector options. The Fund also offers the HESTA Income Stream Ready-Made Investment Strategy, which aims to reduce investment risk over time. Although the Balanced option underperformed the SuperRatings Index over the 5 years to 30 June 2015, the Fund has a history of strong long term investment returns.

Fees are competitive and lower than the industry average across all account balances assessed, with a reduced administration fee on account balances of $250,000 and over. Members are entitled to 2 free investment switches per year, while no exit fees are charged for withdrawals.

HESTA provides good flexibility, with members having the ability to receive payments fortnightly through to annually. Pension payments can be indexed each year by up to 5% or in accordance with CPI. Members with more than one investment option can nominate the proportion of, or order in which, payments are to be drawn from each option. Beneficiary options are comprehensive, including both binding and non-binding nominations, as well as reversionary pensions.

A great range of additional benefits are provided to members including free scaled advice, discounted health insurance and low cost banking services through ME.


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