HESTA Balanced (MySuper): Reliable Returns for Health Sector Workers

HESTA Balanced (MySuper) is the default investment strategy for HESTA members, many of whom work in the health and community services sector. With a 60% allocation to growth assets and 40% defensive assets, this option aims to deliver steady, risk-managed returns tailored to members’ retirement goals. This article covers its asset mix, performance, fee structure, risk profile, and target audience.

HESTA’s Balanced option invests roughly 60% in growth assets (domestic and international equities, property, and infrastructure) and 40% in defensive assets (government and corporate bonds, cash). Growth assets support long-term capital growth, while defensive assets provide income and volatility mitigation during downturns. The fund rebalances periodically to maintain these target allocations.

Over the past decade, HESTA Balanced has delivered an average return of approximately 7.0% per annum. During the strong equity markets of 2017–2019, returns exceeded 10%, while in market downturns like early 2020, drawdowns were limited to around 15%. The fund’s recovery period averaged 9 months after major corrections, showcasing resilience. Investors should review rolling returns across multiple horizons (1, 3, 5, and 7 years) to assess consistency.

HESTA charges a net investment fee of about 0.82% p.a. for its Balanced option, including investment management and administration costs. There are no transaction fees for this MySuper default option. The fee is competitive within industry funds, though members can compare with lower-cost indexed options if fee minimization is a priority. Over a typical 30-year accumulation period, even small fee differences can significantly impact retirement savings.

With 60% growth assets, volatility is expected to be around 8–10% per annum, with a 25% chance of negative returns in any given year. HESTA employs risk management strategies, including dynamic asset allocation adjustments, to navigate market environments. This profile suits members seeking moderate growth with controlled risk exposure.

HESTA Balanced is ideal for health and community services workers in mid-career stages (ages 30–55) who require balanced growth and income. Younger members seeking higher returns may explore HESTA’s Growth option, while those nearing retirement could shift to conservative options for capital preservation.

HESTA members default into the Balanced option unless they choose otherwise. To confirm or alter your choice, log in to the HESTA member portal, select ‘Investment menu’, and choose ‘Balanced (MySuper)’. SMSF members can replicate the asset mix using ETFs and bond funds for a similar DIY approach.

HESTA Balanced (MySuper) provides a solid, well-diversified strategy for members seeking a blend of growth and risk management. Its performance history and competitive fee make it a strong default option. Always align investment choices with personal risk tolerance, retirement goals, and seek professional advice when needed.