Hostplus announced today that it has passed $100 billion in funds under management (FUM), marking a significant milestone and cementing Hostplus’ position as one of the largest and fastest-growing pension funds in Australia.
The growth of the Fund has been driven by a combination of mergers and strong member growth in its personal division.
CEO David Elia said, “As a truly national fund with an enviable investment track record over 3, 5, 7, 10, 15, and 20 years in our MySuper Balanced option, Hostplus is increasingly becoming the lifetime fund of choice for many Australians.”
“This incredible figure of $100 billion represents the retirement savings of 1.7 million members – or approximately 13% of working Australians - who place their trust in Hostplus to manage their retirement futures.”
This achievement is even more remarkable under the current low organic growth market conditions.
As referenced in KPMG’s Super Insights 2023 report, Hostplus’ net inflows in 2022 grew by 7% in an environment where the overall sector lost 0.5% in FUM.
“Reaching this milestone amidst market downturns and continued volatility reinforces the strength and versatility of the fund and clearly suggests that our growth strategy is working.”
“We attribute this success to a combination of strong long-term investment returns driven by an active investment strategy, the loyalty and support of our long-term membership base, and the new members who, on a daily basis, choose us to manage their retirement futures.”
Three successful mergers over three years and another on the way demonstrates the growth strategy is multi-faceted.Hostplus’ mergers with Club Super and Intrust solidified the Fund’s membership in Queensland while the Statewide Super alliance broadened the representative industry base and positioned the fund as a major player within the central corridor of Australia.
The benefits of this scale are already being passed onto members.The Fund has one of the lowest member administration fees out of any MySuper product, and the fees for Hostplus direct investment product, Choiceplus, already a cost leader, were recently reduced. Its indexed balanced option is also one of the lowest cost products in the market with a total investment fee of 0.05%.
The Fund has been also able to leverage its scale to invest in innovative products, technology, member education and services to help its members on their journey to retirement.
Mr Elia continues, "We are thrilled to have reached this significant milestone of $100 billion in funds under management. It is a testament to the hard work and dedication of our team and the trust that our members have placed in us to manage their retirement savings.
"Our focus on optimising investment performance, innovation and cost efficiency has allowed us to deliver strong returns to our members while keeping our member administration fees low. We remain committed to continuing to deliver strong investment outcomes in our members’ best financial interest for the years ahead.”
With the Fund also being awarded the title of SuperRatings Fund of the Year, 2023 will go down as a landmark year for the Fund.
Hostplus looks forward to continuing to provide Australians with an effective means of saving for their retirement.
Hostplus is one of the largest industry super funds in Australia with 1.7 million members, more than 290,000 contributing employers and $100 billion in funds under management.
Media enquiries: Elliot Giakalis (0438 332 378)
Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund (the Fund) ABN 68 657 495 890, MySuper No 68 657 495 890 198.
$100 billion funds under management at 12 May 2023. Includes funds under management for the Hostplus Pooled Superannuation Trust.
This information is general advice only and does not take into account your personal objectives, financial situation or needs. You should consider if this information is appropriate for you in light
of your circumstances before acting on it. Please read the relevant Hostplus Product Disclosure Statement (PDS), available at hostplus.com.au before making a decision about Hostplus. For a description of the target market, please read the Target Market Determination (TMD), available at hostplus.com.au.
Hostplus’ Balanced option is ranked in the top 3 versus peers over 3, 5, 7, 10, 15, and 20 years. Source: SuperRatings Accumulation Fund Crediting Rate Survey – SR50 Balanced (60–76) Index, March 2023. Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a superannuation fund.
KPMG Super Insights Report - KPMG.com/au/SuperInsights2023 ©2023 KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Administration fee comparison is based on the total administration fees and costs assuming a $50k account balance and SuperRatings fee data for public offer MySuper products extracted from SMART platform on 11/04/2023. Other fees and costs apply. Refer to the PDS for more information.
Investment fees include costs which are based on estimated and actual information from the previous financial year. The costs payable in future years may be higher or lower. Administration and other fees also apply. For a full breakdown of fees and costs, see our fees and costs page or Section 6 of the Member Guide.
Visit lonsec.com.au/logo-disclosure for the full SuperRatings disclosure. Go to lonsec.com.au/super-fund/ratings-and-awards/ for rating and award criteria. Awards and ratings are only one factor to consider.