Market Volatility and Member Response
HESTA investment strategy is crucial as global markets face increased volatility due to escalating tensions in the Middle East. HESTA encourages its more than one million members to focus on their long-term retirement goals. This announcement was made on 7 April 2026.
HESTA CEO Debby Blakey remarked, “We understand news of the conflict in Iran and the impact on global markets can feel unsettling, but history shows staying invested through market ups and downs typically delivers stronger long-term returns for our members.”
Following the start of the Iran conflict, HESTA observed a notable increase in investment switching activity in March 2026. Many members reallocated their savings into very defensive options such as Cash and Term Deposits. The Balanced Growth investment option offered by the fund has shown robust performance, achieving a return of 7.77% over the past year, with an average annual return of 7.89% over the past decade as of 31 March 2026.
HESTA’s Investment Strategy
The number of visits to HESTA’s investment landing page via online accounts climbed nearly 37% in March 2026, reflecting increased member engagement during these challenging market conditions. Following the initial market shock caused by US tariff announcements a year ago, HESTA continues to provide frequent updates to its members to help them navigate market fluctuations.
On March 9, oil prices surged past US$110 per barrel, and the ASX200 dropped 2.8%, marking its worst day since the US trade tariff announcements in April 2025. Despite this, HESTA advises against short-term de-risking, which may result in crystallizing losses.
A survey conducted by HESTA in September 2025 revealed that 43% of members are more likely to monitor their super balance during volatile periods. This indicates a growing awareness and engagement with their retirement savings. Members who stay informed and avoid knee-jerk reactions could benefit from stronger returns.
Debby Blakey emphasises, “The best thing to do if you’re feeling anxious about your super is to seek advice tailored to your individual circumstances, which also takes account of how close you are – or if you are in – retirement. Engaging with your super regularly, not just during periods of market volatility, can also help build confidence in your investment strategy and ability to stay the course.”
HESTA is urging members to stay focused on their long-term retirement goals. The fund’s analysis of historical data revealed the potential risks of switching investments based on short-term market movements. Staying invested has typically delivered stronger returns over the long term than short-term de-risking.
Last updated: 7 April 2026, 2:34 pm
