HESTA has delivered a 10.18 per cent return for its MySuper Balanced Growth option in the 2024–25 financial year, marking the third consecutive year of returns above 9 per cent for the $95 billion industry fund’s default investment strategy.
The strong result was driven by the performance of listed equities and prudent management of market volatility, the fund said in a statement on Wednesday.
Over the decade to 30 June 2025, the option returned an average of 7.64 per cent per annum and ranked in the top quartile across five, seven, and 10-year periods.
Chief investment officer Sonya Sawtell-Rickson said the investment team had maintained a cautious stance throughout the year, but was able to capitalise on buying opportunities during periods of market dislocation.
“We started the year with a cautious stance, and our robust liquidity management and stress testing allowed us to take advantage of long-term buying opportunities during the periods of market volatility,” Sawtell-Rickson said.
She noted that geopolitical tensions, particularly in the Middle East, and policy uncertainty in the United States had created periods of market volatility, but that these risks remained manageable.
“While volatility has eased since the spikes in March and April, geopolitical events remain a key consideration as we enter the new financial year,” she said.
“Our expectation is that global economic growth will likely be slower, though the response of several central banks has helped temper recession fears. Further rate reductions are expected over the year ahead, including here in Australia, which should provide additional support to the economy and households.”
Other HESTA options also posted robust returns, with the Indexed Balanced Growth option returning 12.01 per cent; High Growth, 12.00 per cent, and Sustainable Growth, 11.06 per cent.
Members drawing a retirement income also benefited, with the Retirement Income Stream Balanced Growth option delivering 11.81 per cent and the Conservative option returning 8.45 per cent.
CEO Debby Blakey said the results provided welcome relief for members amid a challenging economic environment.
“We are very pleased to report another strong performance for our members, particularly given the more volatile and uncertain period in global markets over the past six months,” Blakey said.
“The consistency of our returns over the long run can make a significant difference to our members, helping improve their retirement readiness.”
Blakey also welcomed policy shifts that will further boost retirement outcomes, including the increase in the superannuation guarantee from 11.5 per cent to 12 per cent from 1 July, and the extension of super to the Commonwealth Paid Parental Leave scheme.
