HESTA announces double-digit return for 2023

HESTA has reported an annual return of some 10.4 per cent for its Balanced Growth investment option for the 2023 calendar year.

Chief executive Debby Blakey called it an “outstanding” outcome for members and a “top-tier result” against the fund’s peers.

“These results are testament to the entire HESTA team, who every day go above and beyond to bring our robust investment strategy to life,” 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.”

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Over 10 years, the fund has returned 7.4 per cent. 

Looking ahead, the $77 billion fund is focused on staying agile to be able to respond to market ups and downs, she added.

“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,” Blakey wrote.

Additionally, the super fund, which was named among the Responsible Super Fund Leaders 2023 by the Responsible Investment Association Australasia (RIAA), highlighted an important area in which it sees opportunities to create long-term investment value in the year ahead.

“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,” 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.”

Earlier this week, $75 billion fund Rest also revealed its calendar year results of 9.5 per cent for its flagship Core Strategy investment option.

Strong performances were also observed in its High Growth and Sustainable Growth options that delivered returns of 11.5 per cent and 10.3 per cent, respectively, during that time period.