"Hostplus recognises that a combination of quality investments and financial advice can play a truly valuable and life-enhancing role for all Australians. So we’ve taken innovative steps to help SMSFs and their advisers achieve that objective."
- Paul Watson, Group Executive, Member Experience, Hostplus
There’s no denying that it’s sometimes been said that industry funds haven’t always been as easy as retail funds for financial planners to work with. However, in recent years this has largely changed, with a number of the larger and more progressive industry funds working with and supporting advisers for the benefit of a common client or member.
Hostplus has been part of that evolution, having refined and developed both its member experience and engagement strategy, and, as a key element of that, its advice operating model, to better support its members and their advisers.
One distinctive and important way Hostplus has demonstrated its commitment in this area is by launching in 2019 its pioneering and increasingly popular Self-Managed Invest (SMI) solution for self-managed super funds (SMSFs). This investment solution now offers some of Hostplus’ most successful investment options to SMSF investors, making it easier for them and their advisers to build strong and diversified portfolios that strive to deliver growth, income and a better future.
I’m often asked what Hostplus’ motivation was in introducing its SMI solution for SMSFs. In part, it was in recognition that some members, although very happy with their experience of Hostplus, had other objectives and requirements – often associated with their businesses - that made operating an SMSF appealing and feasible. While respecting their decision to transfer their super to their SMSF, we wished to maintain an investment connection with them.
Another motivation was that our research and experience informed us that when SMSF owners decide to close their fund and transfer their balance to an APRA-regulated super fund, often preceding or during their retirement phase, they look for a fund that they have a history with, or one that is a consistently long-term performer.
We felt that our SMI solution was a good way to maintain our connections with SMSF owners, through an investment relationship, and to earn the opportunity to be that trusted and often ‘last home’ for these investors’retirement savings.
Access to the ‘impossible’
We also know that SMSFs are not traditionally investors in, and can find it hard to get access to, asset classes like private equity, venture capital,infrastructure or property, largely due to the difficulty and costs involved in accessing these assets, As small and individual investors, they are increasingly looking to access such assets for diversification and other benefits via experienced and successful investment providers.
By making these assets available to SMSF investors at a reasonable cost, with daily liquidity, and professionally managed by an entity with a successful track record and experience in such markets, our SMI solution enables SMSF investors to broaden their asset allocations and realise improved diversification and, hopefully, better investment outcomes.
We also offer several of our most popular multi-asset class options to SMSFs, which provide further improved diversification and risk-adjusted benefits for their portfolios. These include our multi-awarded and well-performing default Balanced and Indexed Balanced options. According to SuperRatings, Hostplus Balanced was the best-performing option in the balanced category over the financial year, as well as the five-year and ten-year period (to end-June 2022).
Like the superannuation sector, the financial advice industry has also experienced significant structural reform and transformation over the past several years. Today, more than ever before, the financial planning industry is one premised on professionalism, heightened transparency and a client-centric approach.
At Hostplus we support the transformation of the industry and want to support its future and harness the synergetic benefits our fund and advisers can deliver for Australian investors. It’s why we’ve been working towards more closely engaging with and supporting financial advisers across the country, along with ensuring Hostplus’ SMI option and other product and service solutions are available, accessible and valued by advisers and their clients alike.
We believe that harnessing the best of two worlds; quality industry funds and SMSFs, and partnering to optimise retirement investment outcomes is the future. A future that is here now.
To learn more about Hostplus Self-Managed Invest, please send our team an online enquiry or call us on 1300 350 819.
The information in this article is correct as at the time of publication.