investment update - February 2025

Read a recap of 2024 performance, market movements, our CIO in the news, and a partnership to increase housing development.

investment excellence with impact

All Super and Income Stream ready-made options have delivered strong returns over the 12 months to 31 December 2024. And importantly, these options have all achieved returns above their long-term 10-year objectives to 31 December 2024¹.

Super and Transition to Retirement (TTR)

For Super and Transition to Retirement (TTR) members, our Balanced Growth option returned 11.03% over the 12 months to 31 December 2024^*.

The Balanced Growth option (MySuper) returns to 31 December 2024

You can view all our returns on our Super performance page.

^* Investments may go up or down. Past performance is not a reliable indicator of future performance. Returns are net of investment fees and costs, transaction costs and taxes.

Retirement Income Stream

For Retirement Income Stream (RIS) members, our Balanced Growth option returned 12.12% over the 12 months to 31 December 2024, and our Conservative option returned 6.57% over the same period^*.

Retirement Income Stream Balanced Growth option returns to 31 December 2024

Retirement Income Stream Conservative option returns to 31 December 2024

You can view all our returns on our Income Stream performance page.

* Investments may go up or down. Past performance is not a reliable indicator of future performance. Returns are net of investment fees and costs, transaction costs and taxes.

AFR’s CIO Survey

Our Chief Investment Officer (CIO) Sonya Sawtell-Rickson once again participated in the AFR’s Annual Super CIO Survey. In the article, Sonya raised how conscious HESTA is about its stabilising role in financial markets. Also highlighted was the monitoring and preparations HESTA has taken to help manage risks in the market.

market news

Bringing you the top 5 market themes to recap the calendar year:
 

1. The S&P 500 achieved a remarkable 25% total return in 2024, driven by the strong performance of AI and tech stocks, particularly the "Magnificent 7," which soared 67%. Bitcoin also surged, gaining 140% against the AUD.
   
   
2. Central banks had varied responses to inflation, with the US Fed cutting rates by 1%, the Bank of England by 0.5%, and the Bank of Canada by 1.75%, while the Bank of Japan unexpectedly hiked rates to 0.35% and the RBA held steady at 4.35%.
   
   
3. A significant equity rally occurred in November following Trump's "red sweep" victory in the US presidential election, boosting the S&P 500 by 5.9% and the Russell 2000 by 11% in that month alone.
   
   
4. Despite a positive year for risk assets, bonds faced challenges as US 10-year yields rose for the fourth consecutive year, and geopolitical tensions contributed to a 27% rally in gold.
   
   
5. The Australian economy showed resilience with a 5% rise in house prices and a drop in unemployment to 3.9%, though the AUD's decline to $0.62 delayed RBA rate cut expectations deeper into 2025.

super with impact^™

Finally, we are delighted to share one of our new investments that is helping us to deliver on our vision for Super with impact^TM*.

Fitzroy Gasworks

As a capital partner of housing developer and manager Assemble, alongside AustralianSuper, HESTA is delighted to join consortium partners Milieu and Hickory in the redevelopment of the Fitzroy Gasworks precinct. Together, we’re delivering around 820 new homes that meet the diverse needs of Victorians—whether they’re renting, buying, or in need of specialist housing.

Fitzroy Gasworks is strongly aligned to HESTA’s intention to support the domestic affordable housing market and is supported by strong market fundamentals. This will help drive strong risk adjusted returns for HESTA members.

The buildings will be designed with sustainable development principles, including green star ratings, solar panels to rooftops, and sustainable water management. Within proximity of substantial green spaces (e.g. Edinburgh Gardens, Darling Gardens), universities (e.g. UniMelb, RMIT) and hospital and biomedical precincts (e.g. Royal Park, St. Vincent’s Hospital), it promises to be a boost for liveability.

Australia’s need for sustainable, diverse housing options is urgent, and by partnering with the Victorian Government’s development agency, Development Victoria, we’re demonstrating how collaboration can unlock the kind of scalable housing solutions our cities need.

For more information on Assemble’s work in Australia, please visit the Assemble website.

¹ Except Indexed Balanced Growth, which only commenced on 1 October 2020 and has returned 9.62% average annualised return since inception.

* Investments may go up or down. Past performance is not a reliable indicator of future performance. Returns are net of investment fees and costs, transaction costs and taxes.