Key Points:

• HESTA delivered 9.4% return for the MySuper Balanced Growth option

• Focus on lowering investment costs and sustainable outcomes

• AI and technological advances, alongside demographic trends, inform portfolio positioning

• Investment in housing and healthcare seen as drivers of long-term performance

HESTA reports adding over $10 billion in savings and investment returns to member accounts in 2025, with the MySuper Balanced Growth option achieving a 9.4% return, surpassing the industry average of 9.1%. Jeff Brunton states this marks the third consecutive year with returns over 9% for this option. The High Growth and Retirement Income Stream Balanced Growth options also delivered returns above 11%, benefiting the fund's one million members. Brunton attributes these results to a disciplined, long-term, responsible investment approach.

Cost reduction remains a key focus, with Brunton underscoring the significance of lower investment costs for long-term retirement outcomes. He highlights HESTA’s intent to balance strong, consistent returns with sustainable investment, targeting climate solutions, housing, and healthcare. Brunton considers these areas critical for generating both positive financial performance and broader societal benefits. He notes that capturing equity market rebounds, particularly amid volatility in March and April, played a pivotal role in 2025’s performance.

Looking ahead to 2026, Brunton anticipates ongoing market uncertainty and volatility. He points to opportunities in AI, referencing the influence of the “Magnificent Seven” in international equity, and asserts that demographic shifts and investments in affordable housing are poised to drive strong returns and support the Australian economy.