HESTA returns 9.1% to members

HESTA's default MySuper balanced growth option has returned 9.1% over the last financial year.

The option has averaged an annual return of 7.62% over the past 10 years.

HESTA chief executive Debby Blakey said that despite ongoing uncertainty in financial markets and cost-of-living pressures, the fund has continued to build on its strong long-term investment performance.

She added that strong long-term investment performance would help retirees maintain their savings while they draw an income stream.

"It was fantastic to see that our income stream balanced growth option returned 10.16% for the financial year ending 30 June 2024, and has delivered 8.13% over the past 10 years," she said.

Meanwhile, some other HESTA diversified investment options also posted notable results for the financial year.

The high growth option yielded 11.91%, indexed balanced growth achieved 11.86%, income stream high growth returned 12.70%, and income stream indexed balanced growth recorded 13.11%.

HESTA chief investment officer Sonya Sawtell-Rickson said the strong returns reflected resilience in public financial markets, even as interest rates remained above 4% over the financial year.

However, she cautioned that recession triggers are still a looming threat in Australia and many other developed countries. Challenges for investors include "persisting market volatility" as well as the "relatively high valuations" in many markets.

"However, we're still seeing investment opportunities in the climate transition, governments pushing to diversify supply chains, and the potential productivity benefits from the adoption of AI," she said.

She emphasised a focus on remaining nimble, ensuring liquidity is available if opportunities present.