Forging ahead with ambitious plans
Global Investment Insights
with Debby Blakey
Chief Executive Officer, HESTA
Director, Fund Executives Association Limited (FEAL); Industry Super Australia (ISA); Australian Council of Superannuation Investors (ACSI); Association of Superannuation Funds of Australia (ASFA)
Debby is the Chief Executive Officer of HESTA, the $54 billion industry super fund dedicated to people working in health and community services, with 870,000+ members, more than 80% of whom are women. Operationally, Debby’s priority currently is to maintain a future-focused organisation while supporting HESTA’s members and its people through today’s challenges. One of the key challenges being the extended lockdown of their trustee office in Melbourne, Victoria due to COVID-19.
Nevertheless, they are continuing to forge ahead with ambitious plans. These include working to address climate change risk across their portfolio through advocacy and active engagement, progressing the internalisation of their Australian equities investment function to continue delivering strong, long-term performance for members and helping more HESTA members build their knowledge around super through advice and education opportunities.
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The future of investing is at an inflection point.
A focus on responsible investment is fundamental to
achieving tangible, long-term change.
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Debby sees the future of investing as being at an inflection point, with a focus on responsible investment being fundamental to achieving strong, long-term returns and tangible, lasting change that benefits members. “We are proud to measure impact across our portfolio that is linked to seven United Nations Sustainable Development Goals”, she highlighted.
Today’s challenges also represent amazing long-term opportunities for investors.
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A once-in-a-generation chance to position members’
investments for opportunities arising from the global
transition to a low-carbon economy.
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HESTA’s total portfolio ‘net zero by 2050’ emissions target will inform investment decisions and innovation on climate change for decades to come. It is a once-in-a-generation chance to position members’ investments for opportunities arising from the global transition to a low-carbon economy.
COVID-19 has also given HESTA the opportunity to advocate for a gender lens to be applied to global recovery efforts. The impacts of COVID-19 have affected women more severely and, as a result, we risk a backwards slide in gender equality. Applying a gender focus to recovery efforts gives us the chance to build back a more resilient, sustainable and equitable economy.
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Applying a gender focus to recovery efforts
gives us the chance to build back a more resilient,
sustainable and equitable economy.
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The financial services industry has work to do in terms of fostering cultures and workplaces that encourage diversity and inclusion. Progress is happening, but the industry still has a long way to go to fully leverage the stronger decision making and performance that comes from diverse and inclusive teams and organisations. Recognising this, we have led by example by launching 40:40 Vision, an ambitious investor-led initiative that aims to see women fill at least 40% of executive roles in the ASX200 by 2030.
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The industry still has a long way to go
to fully leverage the stronger decision making and
performance that comes from diverse and inclusive
teams and organisations.
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Portfolio wise, HESTA is looking to increase their allocation to global listed equities over the next few years. “Generally, with the cash rate near zero, we are cautiously optimistic about listed markets and we see an opportunity to increase the diversification in our listed equities portfolio”, Debby stated. Our investment team is also looking to diversify our exposure to defensive assets and is exploring allocating more to defensive alternatives that will give us downside protection in different market conditions.
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With the cash rate near zero,
we are cautiously optimistic about listed markets and
looking to increase allocation to global listed equities.
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Debby left us with some of the lessons learned from her career ups and downs, and from HESTA’s resilient and hardworking members in health and community services who have been at the forefront of COVID-19.
She remarked, we are the architects of our own lives and careers. While we may (hopefully) experience some lucky breaks and chances along the way, we alone are responsible for the opportunities we take and the path we shape. We must believe in our own worth, and in our own abilities and judgement, to get us through the good times as well as the challenging times. But it is also important to remember we are not alone on this journey, and we can take great comfort in sharing our highs and lows with those we walk alongside.
Disclaimer
All information contained within this publication is general advice only, as the knowledge levels and needs of all individual and corporate investors vary greatly this publication should not be used solely as a decision-making tool, further opinions and information should be sought before making an investment decision. It is the recommendation of Global Investment Institute (GII) that you seek the opinions of a fee-for-service, independent investment adviser before making any investment decision.
The authors, directors or guest writers may have a financial interest as investors, trustees or directors in investments discussed or recommended in this document. It has been assessed by the editors that these financial interests have not had an impact on the material contained here within.
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